Today, a lady called me at 6pm while I was in a meeting.
"Sir, we would like to invite you for a preview of overseas property investments," She said.
"Ok, where is the investment?" I said.
Agent: "It's in London. We're selling land."
Me: Land? Hmmm... where is it located? Which zone is it?
Agent: It's in Zone 5, North East London. Have you heard of G???? (some crappy name I've never heard of).
Me: (increasingly suspicious) How much are you selling it for?
Agent: GBP300 psf. It's very cheap.
Me: What is it zoned for?
Agent: It's a green zone.
Me: (Alarm bells ringing). Do you know land in London is very cheap? I can buy something near Canary Wharf or Covent Garden at GBP400 psf. Building cost is GBP200 psf. That means freehold land in zone 1 and 2 is only GBP200 psf. This is unlike Singapore, where land is ridiculously expensive. Who's selling it to me?
Agent: Errrr, perhaps you'd like to come down so we can show you various packages that suit your needs.
Me: Are you a land banking firm? Which means like Walton, UK Properties, Edgeware etc, you sell land to me that you've bought previously? How much did you buy the land for?
Agent: (sounding increasingly uncomfortable). Yes we own the land but I don't see why you need to know the price which we bought it for...
Me: Which developer will buy from me a Green Zoned land after you've built in 300% of profit? I need to keep it for decades!
Line went dead. She hung up.
I think the Monetary Authority of Singapore needs to seriously step in. There are many fools minted by the HDB price boom. Vultures are circling this bunch of gullible people called Singaporeans, who have always relied on the government to shield them from harm. Their thinking caps are rusty. They have turned into robots with no independent thought.
Many of these land banking companies buy pieces of agricultural land hoping that they will eventually re-zoned to residential. But the most unethical thing is these land banking companies actually own the land at dirt cheap prices. They pile on 300% of profit when they sell to unsuspecting Singaporeans.
The buyers end up holding it for a long time, perhaps even for decades before seeing any profit.
Then there are some agents who claim to sell US and UK properties at very cheap prices. Unknown to locals, these properties may be located in terrible areas where the houses are virtually worthless. The agents could have marked up 20 - 50% commissions. You will never know.
The best advice I can give is, fly to the place and do some research before you buy. The location that they claim is fantastic maybe in a toxic wasteland. Check the prices on internet, with agents in the US and UK. Don't take the agents' words for it over here. Be skeptical, never giving anyone a benefit of doubt.
Nobody will give you money on a silver platter. Unfortunately and sadly, most people want to snatch your hard earned money from you. It's important to note that you have to start from a basis that every body is a crook until proven innocent when it comes to business.
No comments:
Post a Comment