Dear Sir,
My family and I bought some land in Canada 7 years ago and have yet to see our profits actualised. Is this investment a scam? We haven't tried asking for our money back but reading about the same company being raided in Malaysia makes me think it may be one.
REPLY
It is difficult for the investors to get back their money from land banking projects. Many investors have waited a long time, and have now given up hope of getting back their money.
There's an article on Straits Times today reports that yet another spa has closes. It's an upmarket spa. I guess their packages must have cost more.
ReplyDeletehttp://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_512445.html
Some landbanking brochures indicate 4-6 yrs timeframe and yet they take longer time, so naturally some investors are confused? I wonder is there such ting as breach of contract? or is there a catch in some fine prints???
ReplyDeleteCanadian real estate in Alberta around Calgary & Edmonton have been affected by 2 phenomenon in the last few years, first by the housing slowdown in the US starting in 2006-2007, and then by the collapse in oil prices from mid-2008.
ReplyDeleteThese areas in Canada are dependent on natural resources for much of their wealth effect and economy. E.g. timber forests for construction and oil sands. I.e. Typical red-neck country.
Your hope is for oil prices to boom back to US$120+/bbl (increase chance of property developments) and/or the landbanking company to attract more speculators, in order for the company to generate sufficient cashflow to pay you.
I was approached 2 years ago on landbanking from a Canadian Company. As usual, the marketing gimmick was established Canadian Company, many people took up, great opportunity for higher return as compare to bank deposit.
ReplyDeleteI did not join due to cash constrains. I hope someone can educate us on what other gimmicks these people used to make us part with our money. This is important since our MAS is not stopping such scam thus we have to be prepared if ever we meet up with these people.
The surest way is to say "No" to anything you don't understand but sometime it is difficult especially when a friend or a relative want you to sit down and listen.
Just say goodbye to your investment and move on. Don't expect the Govt or the Police to look into your case, they just do not have the manpower resources to look into landbanking investments as the such companies are foreign sourced from all over the world.
ReplyDeletethey would just say caveat emptor, invest at your own risk with your eyes wide, wide open.
There is no such thing as consumer protection in Singapore, that is why we are behind Hongkong in every aspects. Just spend some time in Hongkong there, you would be taken by surprise.
People get emotionally attached to investments. They wont sell investments at a loss even though investing may give them a better return going forward. This is the biggest mistake. Huge potentials are always discussed and those potentials are associated with expensive houses,cars, holidays - success symbolism.
ReplyDeleteThe value of an investment is not what you paid for it, what it says on the statement or what it might be worth one day in the opinion of a salesperson.
The only true value is what can you sell it for when you need the money.
If land will mature in the future the value should go up as the future gets nearer.
Go to your vendor today and try and try and sell your land. I believe you will find after seven years your land is worth less not more.
One company selling UK land banking plots with claimed 3 year returns has dropped the plot price from S$18,000 to S$12,000 in the last 18 months.
The future seems to be getting further away for all land banking companies.
Some remark landbanking is like Madoff type investments. The early birds reap the huge windfall whereas the new investor fall into their trap.
ReplyDeleteBut landbanking is a good alternative provided you have spare cash and insider information!
Canadian Land vs. US Land which is being hotly promoted!
But some Canadian Land exits have taken place slow and steadily but am NOT sure about the state of affairs in the US?
Don't worry, Oil Price is inching upwards at US$85 per barrel. Also the Canadian $$$ also appreciating
ReplyDeletecontact your Consultant for updates if any.
the spa owner used to be Young PAP Youth Wing chief...Francis Phun
ReplyDeleteif I know the company you're referring to, i think they provide the option to buy bank the land after 5 years. Perhaps it's better to cut the losses now instead of waiting another 7 years.
ReplyDeleteI have cut my losses in my niagara vista land bank. Losses less than a thousand, but I managed to exit in 2.5 year on Walton resale market. I have lost confidence in Walton.
ReplyDelete