When it comes to New Zealand, you all know how much we pride ourselves on the clean and green reputation. And it looks like that goes the same for our attitude towards corruption in the public sector! In the Transparency International Corruption Perceptions Index, New Zealand has ranked the second best in the world.
While it applies to the public sector, it's important to watch out for bad practices when you conduct private dealings to purchase investment property. With this in mind, here are some things you should always look out for when seeking property investment advice.
Check your advisor is authorised
The basics of avoiding bad or corrupt advice when you want to buy investment property in New Zealand are simple. First, you should make sure you are getting advice from someone who is actually qualified to do so. The Financial Markets Authority manages this, and an Authorised Financial Adviser will also be registered with the Financial Service Providers Register. Check up on their qualification before you take advice!
Make sure they are up front with the paperwork
When you engage the services on an AFA, they must provide you with certain documents. The first of these is a disclosure paper that profiles the services they provide, while the second details what sort of fee will be paid to them. You shouldn't have to ask for these, the AFA should provide them to you up-front. If this doesn't occur, then you might want to double check who you are dealing with!
Navigating the property investment market can be difficult enough when you are trying to buy for the first time, and getting poor financial advice is just another thorn in your side. When you deal with Authorised Financial Advisers like at Goodlife, you can rest assured that you are in safe, qualified hands and on the way to a great property.
Here's to your financial independence!
Daniel Carney
Authorised Financial Adviser / Investment Property Expert