28 October 2011
The Financial Markets Authority is warning potential property investors with no income, who are currently being targeted by advertising to attend property seminars, to seek legal and financial advice.
The warning is in response to newspaper advertisements issued recently by Property Tutors Limited inviting investors who have "no or minimal income" to attend seminars with the promise that they will learn "systems" to obtain loans to fund investment in property.
FMA Chief Executive Sean Hughes said investors needed to understand fully the costs of property ownership and debt servicing, market fluctuations, and the risk of losing assets used as security.
FMA encourages anyone thinking about taking on debt for investment purposes to obtain independent legal and financial advice from a registered or authorised financial adviser. The Financial Advisers Act obliges all advisers to act with care, diligence and skill, and investors should be able to expect competent and prudent advice from anyone who is advertising services as a Registered Financial Adviser.