Is land-banking a sound investment? Or Scam?

RunForrest

Alpha Male
Saw this thread and I thought since I do have some research on it, so might as well offer my opinions.

Generally, there are many landbanking companies out there. Being Walton the most popular because they have track records and has been around for some time. Some 20+ years infact. So to say it's a scam is definitely not true. There's a reason why they can stay around for so long.

That said, reputation of the company is 1 factor to consider, the other most important factor would be the piece of land u are getting. Doesn't mean the company have proven track records means all their investment will make $. So it is important to research on the piece of land u r getting.

I personally think it is an investment worth considering if you had already put your foudantion financial planning in place and has the extra cash
 

julesy

New Member
New hdb regulations state that land banking is also considered private proprty, hence if u own a hdb flat, u can't buy land , even land banking. This is effective 31 aug 2010. I bot a unit of land frm land banking but that was in 2009. Still waiting to cash out, projected time was 4-6 years
 

RunForrest

Alpha Male
New hdb regulations state that land banking is also considered private proprty, hence if you own a hdb flat, you can't buy land , even land banking. This is effective 31 aug 2010. I bot a unit of land frm land banking but that was in 2009. Still waiting to cash out, projected time was 4-6 years
That is not true. The piece of land has be considered residential. If you bought from Walton, most probably that is a land that has not been rezoned.
 
I had a few projects wif walton and I was really upset and worried last and this year. The reason being there was no updates from my consultant or the company.... Plus my biz partner's friend who is a consultant too, told me a different scenario from what I was told. Things are worse when my consultant was negative about the investment and company after she is on matenity leave :-(.. Its only recently someone else from Walton called and told me he is my new consultant. I am not too sure if the investments are sound now cos I am still waiting for my projects to be exited.

The lesson I learnt is do not go into any form of investment if you cant be in control of your investment. Do not expect others (financial planner or consultant) who claim that they will take care of your investments or your money. Same thing happen to my financial planning investment too :-(
 

RunForrest

Alpha Male
I had a few projects with walton and I was really upset and worried last and this year. The reason being there was no updates from my consultant or the company.... Plus my biz partner's friend who is a consultant too, told me a different scenario from what I was told. Things are worse when my consultant was negative about the investment and company after she is on matenity leave :-(.. Its only recently someone else from Walton called and told me he is my new consultant. I am not too sure if the investments are sound now cos I am still waiting for my projects to be exited.

The lesson I learnt is do not go into any form of investment if you cant be in control of your investment. Do not expect others (financial planner or consultant) who claim that they will take care of your investments or your money. Same thing happen to my financial planning investment too :-(

You are right. You can hear their opinion but don't expect them to follow thru with you. Do your own homework and plan your own exit.
 

kelamel

New Member
I agree... end up you can't sell or terminate... kena leeched dry by them...
wonder if these can be called mis-selling???
But then again... there's still so many such cases around... basically preying on people's greed for high returns.
Hi there, i do not mind buying ur land if the price is reasonable.
Name to be transferred to me
We can deal in the secondary markets if you dont mind.

Email me at (i have pmed you my email) and we see how we can go further.
 

judas

New Member
hi all, just chanced upon this thread abt walton landbanking. i think its only fair i give some input the negetivity w my personal experience. i have investment in walton too, in edmonton canada. n just FYI, i just got confirmation of developer offer for the investment in m in at walton. n the offered price of the land is slightly more than 3 fold increase from the initial price. long story short, compounded return over the last 10 yrs at 10plus %. even after paying off the remainder of the mortgage loan. n guess wat? that is only for 50% of the land which developer wants to buy now. i still have 50% for future exit at a definitely higher price w no more installments to fork out. why? the current sold off development will make it even more attractive for the land that is left. meaning all in all. its going to yield i dare say much more than 100% returns overall once its fully exited out.

just do yr due diligence, investors who have parked their money w walton n see it to maturity have never lost any money. all walton owned projects is audited n verifiable. its a totally different model of operation from those companies in the UK. their track record speaks for itself. ( not those who sold off halfway before project exit because they need money halfway)

i dun work for them, neither do i promote for them. i just wish to clarify, that this is only good if u dun have to touch the sum of money put in for the duration of the investment. its simple enter n exit.
 

Edwinie

Member
Anyone heard of Grandtag A2A? They are promoting a piece of land near Niagara Falls. each plot it at CAD 10,000. Within 4-7 years, they say can generate CAD 20,000. It sounds good. The plot is at quite a good location, with companies, factories, school, casino, the falls all within 30 minutes or less. It's near a major highway that connects from canada to us. it is just 15 minutes away.
 

Avatar

New Member
If you are thinking about trashing cash into landbanking, please read the web article below and ask yourselves a few questions:

http://www.fredericksburg.com/News/FLS/2011/012011/01082011/599140 or
http://www.fredericksburg.com/News/FLS/2010/112010/11172010/588695/mobile or

http://www.fredericksburg.com/News/FLS/2010/112010/11302010/591219

(1) Will you be so silly as to use your hard-earned money to pay for a piece of wasteland drastically marked up 5.45 times or $54,500 per acre by the landbanking company immediately after it had purchased the wasteland at cost $10,000 per acre?

(2) Who has pocketed the quick and fat profit of ($54,500-$10,000)*355 acres = $15.75 million? Why would a landbanking company need a hefty additional $15.75M of investors’ money for expenses leading to sales or exit of land? Where has the additional investors $ gone to???

(3) Do you think you can still make money after the wasteland has been drastically marked up 5.45 times by the company? Would you buy a stock at $50 from a person who had bought it from the ready stock market at $10 and promised you that its future price might be above $50 someday in the unforeseeable future?

(4) If the wasteland is so valuable, why would the original US owner part with it willingly and hastily at such a low price? If the wasteland is so valuable, why no US resident or other foreign investor is eager to buy?

(5) The quick and fat profit mentioned earlier ($15.75M) would be used by the landbanking company to buy more of the same properties (ie. 304 acres of additional land as stated in the article) or other properties at dirt cheap prices; mark up again; packaged into smaller units; and sell to unsophisticated investors again in Singapore and Asia to hold on for yet another unlimited time period!

Assuming that the company sells the additional 304 acres at the same $54,500 price tag, the company will be making a quick and hefty total profits of ($54,500-$10,000)*(355+304 acres) = $29.33 million!!! This process will just keep going on and on..... Now, you understand why you can enjoy good food and prizes at landbanking investment seminars...

(6) Why some Singaporeans are still trying their luck in landbanking after many bad experiences in similar investments like Ostrich farms, wine farms, oil wells, etc.? Greed and Naiveness. When these people make losses, they will simply blame the government for not watching their back, and never fault themselves for being foolish. Asians especially Singaporeans are instilled with the mentality that land is scarce and expensive, and its value will always increase overtime. Given the chance to buy land at perceived low price of $10k per landbanking unit, Singaporeans will just buy without bothering to think twice. That's the reason why Singaporeans are easy targets of landbanking companies.

(7) Sales consultants of landbanking companies are always very quick to ask you to reserve the land for say $2000 only for each landbanking unit of $10,000. But please bear in mind that this so-called reservation deposit is in fact the original cost of the land (remember the drastic mark up?) and yet you still have to fork out balance of $8,000 or "admin costs" later. Does it sounds like a reservation deposit to you??

(8) Landbanking is an unregulated business in Singapore as confirmed by MAS and other regulatory bodies in Singapore. In other words, you have no recourse at all to any regulatory bodies if you lose money due to any landbanking scam. MAS already stated very clearly on its position “...if investors choose to deal with persons that are not regulated by MAS, they forgo the protection afforded under laws administered by MAS.”

It's time for Singaporeans to wake up and think before investing in any unfamiliar products promising high returns!!! Beware!!!

Below is another web article to a very informative article on landbanking. Please read it as well.

http://www.learnmoney.co.uk/advice/advice-87.html
 
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ziggyy

Alpha Male
Just happened to see this.

Factor in currency exchange risks too... I've lost quite abit just because the USD fell... Hope by the time I exit, the exchange rate gets a little better...
 

investor

New Member
everything sounds like a scam nowadays. what to do? put all the cash under the pillow?

The US social security system functions like a ponzi scheme. Govt prints money and cause inflation is gonna kill more people than a Tsunami. Most people who are not financially educated will find themselves 'suprised' when they turn 65. $1 mil today with just 2% inflation will be eroded into $550k in 30 years.

after reading most of the posts in this thread, i will have to say something.

I bought land in australia and it doubled in 2 years, because it's already zoned as residential. some even told me i was mad for buying land because it is not income generating. Well, after building a house above it, the value went up even more.

On the contrary, many financial consultants persuaded us to buy insurance and unit trusts. They say it is safe, because they are regulated. some even bought Lehman's mini bonds. Hey, it is sold by a bank, it must be good right? anyway has a made a lot money from units trusts in the last 10 years?

Bottom line is, know what you are investing in, if you have no money, try to save up some, then invest. That uncle who bought walton land on mortgage shows how lacking in financial knowledge most people are. It's almost like trying to use your credit card to pay for a downpayment for a condo.

The point is not whether buying walton land is a scam, it is where you are buying the land. it's not even how far it is. Some people will buy land in Johor, because it is NEAR. personally i won't touch Johor.

I bought land in Canada too, but not through walton. Reason why i bought is because i have done my research, i have checked out the plans, and they make sense to me. Trust me, if a company is selling you a greenbelt land near an airport, or oil sands land, what probability you think they can get the govt to rezone it? It's different from if you buy into an area next to existing housing development!!. Just as an example, if 15 years ago i offer you a plot of dirt in punggol at $100psf, you would have said i was a scammer. But what if you really could invest in punggol land at that price? you would be laughing away to the bank now. so bottom line, whatever you invest, just ask yourself, does it make sense?

when a good investment opportunity comes along, don't listen to fear and the smart alecs (like some in this forum), and then miss out on good opportunities and regret for life.

Do your research, and above all, speak to knowledgeable people who HAVE made it, not your friends/family who are still working for someone.

happy investing. One last word of caution, it's probably more dangerous to not invest than taking some risk in investments, but please don't invest milk powder money. If you don't have spare money to invest, i'm suprised you have not reflected why not? have you been doing the right things?
 

investor

New Member
everything sounds like a scam nowadays. what to do? put all the cash under the pillow?

The US social security system functions like a ponzi scheme. Govt prints money and cause inflation is gonna kill more people than a Tsunami. Most people who are not financially educated will find themselves 'suprised' when they turn 65. $1 mother in law today with just 2% inflation will be eroded into $550k in 30 years.

after reading most of the posts in this thread, i will have to say something.

I bought land in australia and it doubled in 2 years, because it's already zoned as residential. some even told me i was mad for buying land because it is not income generating. Well, after building a house above it, the value went up even more.

On the contrary, many financial consultants persuaded us to buy insurance and unit trusts. They say it is safe, because they are regulated. some even bought Lehman's mini bonds. Hey, it is sold by a bank, it must be good right? anyway has a made a lot money from units trusts in the last 10 years?

Bottom line is, know what you are investing in, if you have no money, try to save up some, then invest. That uncle who bought walton land on mortgage shows how lacking in financial knowledge most people are. It's almost like trying to use your credit card to pay for a downpayment for a condo.

The point is not whether buying walton land is a scam, it is where you are buying the land. it's not even how far it is. Some people will buy land in Johor, because it is NEAR. personally i won't touch Johor.

I bought land in Canada too, but not through walton. Reason why i bought is because i have done my research, i have checked out the plans, and they make sense to me. Trust me, if a company is selling you a greenbelt land near an airport, or oil sands land, what probability you think they can get the govt to rezone it? It's different from if you buy into an area next to existing housing development!!. Just as an example, if 15 years ago i offer you a plot of dirt in punggol at $100psf, you would have said i was a scammer. But what if you really could invest in punggol land at that price? you would be laughing away to the bank now. so bottom line, whatever you invest, just ask yourself, does it make sense?

when a good investment opportunity comes along, dont't listen to fear and the smart alecs (like some in this forum), and then miss out on good opportunities and regret for life.

Do your research, and above all, speak to knowledgeable people who HAVE made it, not your friends/family who are still working for someone.

happy investing. One last word of caution, it's probably more dangerous to not invest than taking some risk in investments, but please dont't invest milk powder money. If you dont't have spare money to invest, i'm suprised you have not reflected why not? have you been doing the right things?

it's $1 MILLION, not mother in law. something is wrong with your auto spell correction, administrator.
 

sulihuiwen

New Member
Anyone heard of Grandtag A2A? They are promoting a piece of land near Niagara Falls. each plot it at CAD 10,000. Within 4-7 years, they say can generate CAD 20,000. It sounds good. The plot is at quite a good location, with companies, factories, school, casino, the falls all within 30 minutes or less. It's near a major highway that connects from canada to us. it is just 15 minutes away.



Hi, if you would like to find out more about the project Niagara falls, feel free to email me at landwealthinvestment@gmail.com
 

celesteseah

New Member
Hi

I happen to be browsing the Internet and come across this interesting discussion on land investments. I decided to join the conversation as I have recently joined Walton as a new sales associate.

I started as an investor 6 years ago in Canadian land parcels. I have to confess that I did not carry out any due diligence when I threw in my money. And worse, I bought from someone who is neither related to me or one whom I know as a friend. My story is similar to some of yours which is why I can fully appreciate what you guys are saying. But today, I am proud to be a Walton sales associate. Although i possess a BBA degree from NUS and a Masters Degree in Mass Comm from NTU, i choose to join Walton because i truly believe in what they offer. Over the years, the company has grown in strength - in land acquisition and sales - across several countries. I am proud of the company because despite all the scams and downfalls of many companies, Walton has emerged strongly as a sound and solid company. its track record demonstrates that it has never posted a negative return to its investors till date, even during the subprime days of 2008/9.

in the case whose hubby has to finance a loan of 11.75% to pay off the investment, my suggestion is to approach the salesperson who sold you the land to arrange for a transfer of land title. It is never a wise move to borrow money to invest as your returns will be eroded. Of course, this approach would be a measure of cutting losses and is probably the most logical way to go.

As for others who have friends in Walton earning big bucks, trust me, they are not lying. You will find many of them who are graduates and investment savvy, and they know what a great investment they are selling. Otherwise how do you explain their long term commitment? Why are there loyal clients who continue to support them? Many of them have been there for more than 5 years!

Walton is a mid to long term investment. Invest only if you have some spare cash. It is definitely better than parking your money in fixed deposits that earn you less than 2% pa. Inflation is 5% so think about it... Where is your retirement fund going to come from and what is your future going to be like? Properties are not the best investments.. You have to keep watch on cooling measures, stamp duties and more additional stamp duties... Where does that lead you?

Please feel free to get in touch with me to understand how you can invest wisely... There are many scams out there and you don't want to be the next victim. Invest in a company that have proven track records.

Thank you for reading and giving me this opportunity to share. I just feel compel to share my experiences. Thank you again.
 

roshlow

New Member
For those who dont know... land-banking is about "investing" in plots of overseas raw lands... where you r promised high returns when the land is sold and developed...

My brother in law bought some plot of Canadian lands... through "The Walton International Group" a couple of years back... was promised returns in 5 years time... but with 11.75% investment loan... after 9 years till date... he is still paying... DUH...

:err::err::err::err::err:

dont know if he should continue paying this monthly loan... 5 years... 10 years?
Or cut his loss and terminate this... and lose all the $$$ invested for the past 9 years? About $40K.

Anyone has experience with this?

Some websites say it's a scam... some say it's not...
To me... it's just like MLM... either you're a firm believer or you're not...
if it's so easy to get rich... all no need to work liaooo

I invested with Walton year 2006 in Ingle Wood Texas.It was a promise of 5 years investment with return of 15%- 25%. On the 8 year some one incharge of my account Olivia from Singapore told me my investment is not matured, have to wait another couple more years. and now is the 10 years. I boought a plot of Land....... now i most probably thinks its gone in the wind.......
 

johnny doelon

New Member
As an investor, the rule of thumb is, don't invest in something you don't know. Overseas land may seem attractive, but how well do you know the country? how well do you know its system? How well do you know its government? How well do you know its culture?....etc (you get my point)

Actually, we in Singapore are really blessed! People from overseas have been pouring into Singapore, paying the 20% absd and investing in our properties. We are in one of the few places in the world where property investments are a viable. Our land scarcity here has created a everlasting value for land.

Given the current market, my best pick is Kent Ridge Hill Residences. It is located along the Southern Coast of Singapore, just next to a 1000ha Future Transformation. (Dubbed the 3rd CBD) Prices in Marina Bay jumped 205% before and after its transformation, Jurong 2nd CBD has moved 75.5% since its announcement....

Just imagine what can happen to a transformation 3 times the size of our current and 2nd CBD!

That's where my money will be placed at. I'll leave a link below for those who need reference.

Check out: www.thekentridgehillresidencesg.com
 
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