http://www.guardian.co.uk/money/2009/nov/07/landbanking-investment-scheme
Over the past five years, Guardian Money has warned that, despite taking in tens of millions of pounds from investors, no landbanker has ever delivered the expected profit bonanza that comes with planning permission.
Instead, we have reported how several landbankers have gone bust, including Land Heritage (UK)* and United Land Holdings, leaving buyers with virtually unsellable plots. These investors had no chance of getting their cash back from a compensation scheme, as land sales are not protected by the Financial Services Authority. In 2007 the FSA declared that although it does not regulate land as an investment, "there is a risk that many of these schemes are in breach of the financial regulation regime if they are structured as a 'collective investment scheme'. To operate and promote such a scheme legally, the operators would need to request and obtain authorisation from the FSA, which would then regulate these firms."
I wonder how many Land Banking customers in Singapore have purchased "virtually unsellable plots". It might be worth approaching your land banking company about the value and sale prospects for your plot in case the company disappears with the money like the companies mentioned above seem to have done.
ReplyDeleteIf it is an ethical Land Banking scheme the company should have no issue with your enquiry or with helping you to sell your plot.
If the company is not ethical it is better to be at the front of the queue for a refund while the company still has funds to pay compensation if necessary.