Property Management

Property Tutors no income property investment adverts criticised by FMA

The Financial Markets Authority (FMA) is warning potential property investors with no income – currently being targeted by newspaper adverts from Property Tutors Ltd – to seek legal and financial advice.

Friday, October 28th 2011

The Property Tutors advert invites potential investors' to a seminar where they will be told the "systems" to buy property "even if you do not have an income."

"We will be giving you insight into the lending tools, which give us the ability to buy property under the hammer at auction, even if you have no or minimal income," the advert says.

Landlords is aware the advert has also been drawn to the FMA's attention over concerns Property Tutors' Sean Wood and Steve Goodey are referred to as Registered Financial Advisers (RFAs).

An email seen by Landlords, sent by a senior investment professional, said, "I question whether such presenters, being Registered Financial Advisers, even while presumably presenting at a 'class' level, can ever be said to be meeting the skill, care and diligence requirements of the Financial Advisers Act in promoting such a product/service to people with no income."

FMA chief executive Sean Hughes said investors need to be fully aware of the costs of property ownership and debt servicing, market fluctuations and the risk of losing assets used as security.

He said anyone considering taking on debt for investment purposes should obtain independent legal and financial advice from a registered or authorised financial adviser.

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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