Tan Kin Lian's Blog: Land banking

Thursday, June 10, 2010

Land banking

Read this educational article.

6 comments:

Anonymous said...: In all fairness see:
http://www.waltoninternational.com/walton-advantage

Audit Report: 20 April,2010 (current); June 10, 2010 10:18 PM
Anonymous said...: I hope MAS will step in to stop Financial Advisers from selling these products. Currently a lot are selling and some under different entity, Are FAs desperate for cash flow? Some of these Land Banking companies even give trips incentives. Looks like our FA firms are now driven by incentives which contradicts their role as independant FA. Very sad what is becoming.; June 11, 2010 6:38 AM
Anonymous said...: Hi Mr Tan, just wondering if you had done sufficient in- depth research and study into the various land banking programs out in the market to make a sound and informed judgement or are your opinions based simply on the various complains and negative reports recieved from victims of unscrupulous companies?

I applaud you for taking some of these dodgy companies to task and assisting victims of such scams to seek recourse.

However, in all fairness, there are bona fide firms that are offering these alternative investments. Though not regulated like mainstream investment product, they are not out to fleece investors money as perceived.

As someone who is in the position to influence the general public's opinion on various invesment products, I trust that you would have done proper checks and due diligence to form an unbias opinion.

If you have not, I invite you to do so. Given your wealth of experience in the investment industry, I am certain you will be able to scrutinise and assess the soundness of such products.

Yes, I am from the land banking industry as you can tell by now.

I hope that you will be able to help educate the public so that they will not fall for dodgy land banking investments(or any unregulated investment for that matter), but at the same time, not cause unnecessary stress and concern for those who have invested with bona fide companies.

Have a nice day! :); June 11, 2010 7:39 AM
Tan Kin Lian said...: to 7:39 AM

Why don't you send an e-mail to me?

If your land banking company is selling an honest product, here are some steps that you can take:

1. Issue a prospectus that state th risk correctly
2. Get independent experts to give a valuation of the land
3. Provide statistics for investors to assess the chance of getting approval for development
4. State the commission and marketing expenses of the product; June 11, 2010 8:02 AM
Anonymous said...: Looks like The battle between Bona Fide vs. Dodgy Lanbanking companies!
Bona Fide cpmpanies need no fear as they can improve on feedback such as spelt out in this blog.
Transparency as follows:
a) Original purchased land price?
b) guaranteed exit timeframe?
c) buyback schemes based on prevailing market price plus
fees etc.(processing fees if any)?; June 11, 2010 11:17 AM
Anonymous said...: There are 2 things which land banking companies will not show the public:
1) 3rd-party valuation of the land.

2) The original price paid by the land banking company for the land.

Showing the above 2 will immediately result in the closure of 95% of land banking operations in Asia, because then nobody will be interested to pay the kind of asking prices by the land banking companies.

There's a reason why most land banking companies focus their operations and sales in Asia, not in Western countries where the original land itself is located.

Ask yourself ... if the land is so good and promising, why aren't the local Canadians, British, Americans rushing to buy them? Why aren't the ang moh REITS and funds managers using just a fraction (0.01%) of their Hundreds of Billions of dollars to buy these land banks?

Now also ask yourself, between western countries and Asian countries, who has much stronger pro-consumer and consumer protection laws?; June 11, 2010 2:28 PM