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  • Brick Securities Banned

    BRICK SECURITIES BANNED
    Radio station exposes spruiker and stops ads.

    by Neil Jenman

    Radio advertising is one of the best ways for spruikers to find customers. There's something about radio that seems to make it more effective (and appear more credible) than newspapers.

    And don't the spruikers know it.

    It's hard to say precisely how much money has been lost by investors directly because of radio advertising. It'd have to be several billion dollars. That's right billions of dollars.

    Just two finance companies - Estate Mortgage in the 1990s and Fincorp in 2007 (both heavy radio advertisers) - were responsible for around a billion dollars in losses.

    And then, of course, there's the dozens of property spruikers who use the credibility of radio to flog over-priced and under-performing properties to loyal listeners.

    A few months ago, I contacted one of my favourite radio stations to warn that a notorious spruiker was advertising with them. A spokesman thanked me, "We care more about our listeners than we do about the advertising dollars from dodgy companies," he said. I felt wonderful.

    Well, six months later and that same station is still plugging that same spruiker. It makes me sick.

    Last week, I received a call from Nicole Bailey, a producer with another station - Perth's top-rating 6PR. A listener had alerted the station to an article I once wrote about one of their advertisers - a firm called Brick Securities.

    What, she asked, did I know about Brick Securities?

    For several years, on Sydney and Melbourne radio stations (including my favourite un-named station), Brick Securities had been advertising apartments in Auckland, New Zealand,.

    Their pitch went like this: Buy a soon-to-be-built apartment, pay just a thousand dollars deposit and nothing for two years until the building is completed. Brilliant investment. Great returns. Easy finance. Hurry, selling fast. The usual spruiking drivel.

    Well, if there's one thing that kills the credibility of spruikers, it's a four letter word - 'TIME'. Two to three years after selling scores of Auckland apartments to Aussies, prices have collectively plummeted by millions of dollars.

    The average loss per investor in just one apartment building is estimated at $50,000.

    The bloke involved with Brick Securities is a skilled spruiker. Been around for years. And radio advertising has always been his favourite method of attracting buyers. His name is Rob Young.

    In the 1980s, Young (full name Robert Graham Young) was the second half of a notorious spruiking outfit called Looker & Young.

    In the 1990s, he was the chief of another spruiking company called Young and Company. Back then, Young was a massive radio advertiser. Just like today.

    Only today, Mr Young (and all the other spruikers) are a bit easier to track down, thanks, of course, to the Internet.

    But, while they might be easy to track, they are hard to stop. Their advertising dollars buys them entry into the homes of millions of trusting radio listeners.

    Today, Brick Securities is flogging apartments in Wellington, New Zealand. Their advertisement is almost identical to the one they were using a couple of years ago to flog Auckland apartments.

    "Deposits start from as little as a thousand dollars down for West Australians," says a credible voice, creating the misleading impression that West Aussies get a special deal.

    Based on their history, investors can be assured that, with Brick Securities, there is no such thing as a special deal. Just plenty of spruiking spin. Take this current line for example, "Wellington offers the best value property in Australasia".

    What nonsense, especially when it comes to Brick Securities. Even the name is misleading. They should be called Rocks In Your Head Insecurities.

    Right now, Brick Securities has to find some other way to target investors in Western Australia. At 6PR, the welfare of listeners is more important than the bucks from Bricks. Well done.

    Not only has the station banned Brick's advertisements, they also tipped the bucket on them. Late last week, 6PR's drive-time host, Howard Sattler, warned his listeners about Brick Securities. The station's integrity was not for sale. "That's not the way this company operates," Sattler said.

    What a fine example.

    If every radio station did the same, thousands of loyal Australian radio listeners wouldn't lose millions of dollars in dreadful finance and property investments.

    http://www.jenman.com.au/news_item.php?id=398
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    I've noticed the Brick Securities/Conrad Property adverts in the Dominion Post lately.
    We've already mentioned them on PT:
    http://www.propertytalk.com/forum/sh...2385#post92385

    Everyone would be wise to heed the warnings - steer well clear.
    Maybe the local RE agent who is selling these apartments could explain his actions to us?

    Comment


    • #3
      This is interesting from Conrad.Theyve built a heck of a lot of them.

      http://www.nbr.co.nz/home/column_art...cname=Property

      Comment


      • #4
        I remember hearing ads by these guys. On 1ZB I think in Auckland. Haven't heard them recently but they were always pushing the $1000 down thing.

        The guy does sound quite reassuring. Sounds about 65 and like he's trustworthy. It sounded like a negative gearing thing to me which doesn't make any sense, didn't realise it was an actual scam.

        David
        Squadly dinky do!

        Comment


        • #5
          Hi, Just heard them again on the radio, selling sections in Southland, I think I recall. $20-$30k. Was on radio station Classic Hits 94.6 fm
          Cheers Grant.
          www.afijiholiday.com

          Comment


          • #6
            Brick Securities

            Hi,
            Just wanted to say thanks to all for the insight of Brick Securities. They have just put an ad out on Classic Gold Radio about land near and around Lumsden (Sth Isdn) for $49K which sounded too good to be true, so I put their name into the search engine and came up with your words of warning.

            I'm out and thanks again

            Taupo pom.

            Comment


            • #7
              IZB talkback about 3.30 every friday talking to Danny Watson. $1,000 down.

              Comment


              • #8
                Originally posted by Davo36 View Post
                I remember hearing ads by these guys. On 1ZB I think in Auckland. Haven't heard them recently but they were always pushing the $1000 down thing.

                The guy does sound quite reassuring. Sounds about 65 and like he's trustworthy. It sounded like a negative gearing thing to me which doesn't make any sense, didn't realise it was an actual scam.

                David
                I too have heard the adverts about sections (not apartments) that are being sold by these guys on the radio. Is there any actual evidence that these people are scammers, or is it that the property downturn has affected investors, especially hard in the apartment market, where these guys have normally operated? I am very interested in the land for sale in Sth Island, but I have to listen to common-sense - what are your opinions? Thanks ZM

                Comment


                • #9
                  Heard them on NewstalkZB today advertising sections in Southland for $35k.

                  They're saying there is enough diesel oil locked up in the underground dirt to last for 30 years.
                  "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

                  Comment


                  • #10
                    Originally posted by zimbonz View Post
                    I too have heard the adverts about sections (not apartments) that are being sold by these guys on the radio. Is there any actual evidence that these people are scammers, or is it that the property downturn has affected investors, especially hard in the apartment market, where these guys have normally operated? I am very interested in the land for sale in Sth Island, but I have to listen to common-sense - what are your opinions? Thanks ZM
                    You don't want to be buying land in a falling market. No return and it costs you to hold it (rates + lost interest fom having the money elsewhere).

                    These guys are involved in selling the sections because the owners really really want out.

                    Just have a look through the Property Investments column of the Herald on a Saturday. There's land everywhere for sale. And plenty of them are mortgagee sales.

                    Or right now you can look at this thread posted today about someone who bought land hoping it would go up in value and is now stuck with it:

                    http://www.propertytalk.com/forum/sh...ad.php?t=16759

                    David
                    Squadly dinky do!

                    Comment


                    • #11
                      Lumsdens a nice town and all and as someone commented on another thread. There is the POTENTIAL for increases to mining and potentially oil. But in my opinion buying a section in lumsden would be a pretty speculative buy especially whe you could get a section in invercargill city for not much more .

                      Comment


                      • #12
                        Is this the same Rob Young who advertises with ZB Talk on Danny Watson.

                        He is advertising for 9 apartments for 241,000 each with parking somewhere between Remuera and Ellersie? I've rung them waiting for a call back. Is this guy a crook?

                        Comment

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