Blue Chip

Do we add this to the list of finance companies that have gone belly up?
It hasn't yet but 18 of its related companies have gone into liquidation. All of which seem to be solely in the business of property investment/management. It all is a bit of a mess.

I am not saying the people who invested their money or borrowed money against the equatity they had in their own homes are complete idiots but I do wonder how they didn't spot the potential shark. Was it the absence of the words Gold Coast?

That's right, from what I have seen so far this has all the hall marks of the Gold Coast property scams in the late 90's early 2000's.
I could provide you with a long list of warning signs, some of which my family have learned about the hard way, but I will keep it short and sweet.

If you want to invest in property learn about it first. Read books, look up the IRD information, talk to an accountant ( a good one's information will tally with what the IRD says) before buying and Do It Yourself just like you would if you were buying a home to live in.
Arrange your own lawyer and property management. Don't go with anybody suggested by the seller.
You can even attend one of these free property investment seminas so long as you no not even consider buying one of the properties on offer. If you hate or are suseptible to a hard sell, avoid these seminas like the plague.
If your property investment still goes pear shaped it is easier and cheaper to figure out where the blame lies and believe me it will have cost you less in the the meantime.

If arranging all this and managing an investment property sounds too hard or is too much hard work. Invest in the share market or a bank deposit instead and sleep easier at night.