Saturday, December 01, 2007

Land Banking

Dear Mr. Tan,

The focus of land banking is to purchase a plot of land in the UK, US or Canada. Returns are projected within 4-6 yrs an estimate of 40-60% return. Investment amount is at least min SGD 15000. Returns are realised at point of an exit where 60% of the investors agree to a sale. Said to be next safest to fixed deposits.

Landbankers claims intensive research has been carried out before making it available to investors. Heard several scams especially in the UK.

In Spore, landbanking seems relatively new. They are not under MAS supervision. The promoters paint land banking as a safe investment very low risk. Share your thoughts?

REPLY:

This type of investment lacks liquidity and transparency and is risky. You can be stuck with an illiquid investment for many years. This is best avoided.

1 comment:

Loh Hon Chun said...

Not only it lacks liquity, it is very risky. If you need cash, you may have problems selling the land if no one is interested.

hongjun

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