Investigation into Instant Access Properties Ltd (IAP)
The sister company of the now defunct Inside Track Seminars Ltd (ITS) is the subject of a BBC investigation into selling discounted properties at above market prices.
IAP has taken thousands of pounds in membership fees from people looking to become property investors and then sold them properties that the new owners could not rent out for a sufficient amount or sell on for a profit.
The Radio 4 Face the Facts series has spoken to many IAP clients who have been left seriously out of pocket by following the advice of the firm.
Some investors have found that the rental figures provided by IAP don’t stack up with the reality of letting it out on the open market. One couple who bought property have seen it bring in £300 less per month than the comparable figure quoted.
Also the program has contacted estate agents in two areas that IAP is offering property.
In Brighouse two estate agents were contacted to check on the valuation of a flat that was offered from a discounted £142,000 to £125,000 in 2005, however the agents valued the property at the time as being worth no more than £125,000 - £130,000
And in Clapham three agents valuations were sought for a two bed flat to be built in 2010, offered off plan for £352,538 discounted from £414,750. At current levels the agents said they would only be worth £300,000 - £350,000.
This in a market that many experts and analysts believe will continue to go down hill for the next year or two.
Those dealing with IAP are advised to seek independent advice and do thorough research into the areas that they are looking to purchase into.
July 25th 2008