tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

Property Brokers advertisement complaint upheld

A radio advertisement for Property Brokers did not meet the standards of financial advertising, the Advertising Standards Authority says.

Friday, July 27th 2012, 12:00AM 1 Comment

by Susan Edmunds

In the ad, Tim Mordaunt promoted his company's services for those buying and selling property.

He said: “There’s no doubt that in the long term people should be thinking of their own super scheme. The retirement age will rise at some stage and who knows, in 20 to 30 years, where that will be. Now is the time to buy an investment property.  Prices are affordable, interest rates very low. Your tenant will pay off your mortgage and bingo, when you retire you have income.”

The complainant, S Atkinson said the ad offered financial and investing advice without the credentials to do so.

Atkinson said of Mordaunt's statement: "I believe this provides inaccurate and an overly-skewed view of property investing and plays on people's concern for security in retirement due to current political discussions.

"I was of the impression that to provide investing advice a professional needs to have specific credentials. As this company is advertising real estate and Property management services while they may be in a related industry I would not have thought they should be offering financial, superannuation and investing advice."

Property Brokers replied to the authority with details of relevant qualifications and said:

"I have been involved in real estate transactions since 1976, I have personally sold investment properties to hundreds of buyers, I have managed their portfolios and I know that the advice I gave on the radio really works.

"I write my own radio advertisements and over the years I have been asked to speak to many public meetings and groups about residential and commercial property investment. I was the President of the Manawatu branch of the Real Estate Institute for some 15 years.

"I know I do have both the experience and qualifications to advise people on property investment. It is people who don't take sound advice that get into trouble."

The authority's complaints board said some of the wording in the advertisement could be considered investment advice, which it said was the domain of qualified investment professionals.

It was particularly concerned with the statement that said: “Your tenant will pay off your mortgage and bingo, when you retire you have income,” which the board said strongly implied that a financial return was guaranteed if people bought an investment property. It said that was misleading as no such surety could be given.

The board said the advertisement did not meet the requirements of the code of financial advertising and also ruled that the advertisement did not meet the high standard of social responsibility required of advertisement of this kind.

The complaint was upheld.

 

« Economists unruffled by OCR statementFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Comments from our readers

On 27 July 2012 at 9:02 pm Larry Chi said:
I am an ordinary Aucklander. I believe what Tim Mordaunt said is quite realistic and it is exactly what I am doing. What is wrong with his statement? He somehow encourages people to save money for property investment. Can you deny that property investment is one of the most reliable investments?

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com