The Advertising Standards Authority (ASA) has upheld a complaint against a real estate agent for offering financial advice he was not qualified to give.Oh dear. The problem with poor financial literacy is hardly a bit of puffery on a radio ad.
In the advertisement which aired on The Radio Network stations, Property Brokers managing director Tim Mordaunt said with the retirement age likely to rise people should be thinking about their own super schemes.
''Now is the time to buy an investment property,'' the advertisement said. ''Prices are affordable, interest rates very low. Your tenant will pay of your mortgage and Bingo, when you retire you have income.''
The ASA said the ad could be considered investment advice which was the domain of qualified investment professionals.
It also said the statement strongly implied that a financial return was guaranteed if people bought an investment property, which was misleading as ''no such surety could be given by the Advertiser''.
''In the Complaints Board's view this was a very simplistic summary of [the] risks of property investment.''
Friday, July 27, 2012