Consider levelling playing field, panel told
The FMA hosted the discussion about New Zealanders’ understanding of investment risk.
Panellists adviser Martin Hawes, ANZ Wealth’s John Body, FMA chief executive Rob Everett and columnist Mary Holm said many New Zealanders thought property investing was a safer investment than it really was.
They said it should be considered that if markets were down when investors needed to sell, they could be caught out. Holm said she knew of an investor who had been left with a debt because he had been forced to sell a rental property for less than its mortgage. She said any investment that had to be funded through borrowing became much riskier.
The panel was asked about the tax treatment of rental properties.
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