Mr Tan,
It will be very good if you could create a platform for the "old & poor" PMETs to network and connect.
They may team up to do somethings meaningful with their experiences & resources. Thank you.
REPLY
Please suggest what are the features that should be made available in this platform or portal. If anyone wish to lead in this portal, please send email to kinlian@gmail.com
Thursday, April 22, 2010
Article on land banking
Hi Mr Tan,
Having read about " Investing land outside Singapore" in your Blog, I came across this Updated April 2010 Article that says it all: Nevermind the source but go for the facts.
http://www.learnmoney.co.uk/advice/advice-87.html
JLN
Having read about " Investing land outside Singapore" in your Blog, I came across this Updated April 2010 Article that says it all: Nevermind the source but go for the facts.
http://www.learnmoney.co.uk/advice/advice-87.html
JLN
Investing in land outside Singapore
Someone sent me an e-mail to explain the "professional approach" taken by a land banking company operating in Singapore in submitting applications for approval for development for green belt land in the UK. Some other people said that investing in these land banking plots is similar to investing in properties in Singapore.
Some knowledgeable people told me the following poitns:
a) The land banking plots were sold at 20 to 30 times of the real value of the greenbelt land
b) The chance of getting approval is very slim (and I guess that it must be less than 1%)
Many investors have told me that they invested in these plots and, after waiting for many years they have still not got back their investments. If they sell now, there are no buyers for their plots. Some investors bought the land with an option to sell the land back after 6 or 12 months to the promoter. The options were not honored. They were asked to roll over the investments or to wait for new funds to be available in the future. It will be a long wait.
Tan Kin Lian
Some knowledgeable people told me the following poitns:
a) The land banking plots were sold at 20 to 30 times of the real value of the greenbelt land
b) The chance of getting approval is very slim (and I guess that it must be less than 1%)
Many investors have told me that they invested in these plots and, after waiting for many years they have still not got back their investments. If they sell now, there are no buyers for their plots. Some investors bought the land with an option to sell the land back after 6 or 12 months to the promoter. The options were not honored. They were asked to roll over the investments or to wait for new funds to be available in the future. It will be a long wait.
Tan Kin Lian
Buy insurance directly
Aviva has taken the bold step to offer motor insurance directly to the public. Some motorists have found the premium to be much lower than the rates charged by other insurance companies. A few examples have been posted in this blog.
I encourage commuters to use the quotation service available in Aviva's website to compare their premium rate with the premium rate charged by your current insurer. You can get an idea about the difference in premiums. If Aviva is much lower, you can consider to switch to them on the next renewal.
You should also look at the Term Insurance rates that is offered by Avivia. You can select a level or decreasing cover. Please send their quotes for me to make a comparison against the benchmark set in my book, Practical Guide on Financial Planning.
My benchmark is rather high. If you find a premium that is higher than my benchmark, you should avoid it. In most cases, you should be able to get a premium rate that is lower than my benchmark.
Tan Kin Lian
I encourage commuters to use the quotation service available in Aviva's website to compare their premium rate with the premium rate charged by your current insurer. You can get an idea about the difference in premiums. If Aviva is much lower, you can consider to switch to them on the next renewal.
You should also look at the Term Insurance rates that is offered by Avivia. You can select a level or decreasing cover. Please send their quotes for me to make a comparison against the benchmark set in my book, Practical Guide on Financial Planning.
My benchmark is rather high. If you find a premium that is higher than my benchmark, you should avoid it. In most cases, you should be able to get a premium rate that is lower than my benchmark.
Tan Kin Lian
New fare structure for public transport
A new distanced based fare structure is being implemented in Singapore. The aim is to charge the fare based on distance and not on the number of connections. Under the new structure, those who have to make several connections will pay less (compared to the past) and those who had a direct bus will pay more. Those who have to pay more under the new structure complained that the change is unfair to them.
I believe that this change is necessary and will benefit the public in the long run. It will allow the public transport system to be runned in the most efficient manner and for fewer bus routes and (hopefully) more efficient feeder services.
My wish is for feeder services to be cheaper and have shorter waiting and travelling times. I do not mind taking a feeder bus to the train station or bus interchange and to take a long distance bus (with few stops) to reach my destination. I am used to making transfers between bus to train and from train to train. It is acceptable to the majority of commuters who are mobile. (The needs of the elderly and the handicapped may have to be served differently).
I hope that the public will be patient and try to get used to the changes and the new system. I am hopeful that it will be better.
Tan Kin Lian
I believe that this change is necessary and will benefit the public in the long run. It will allow the public transport system to be runned in the most efficient manner and for fewer bus routes and (hopefully) more efficient feeder services.
My wish is for feeder services to be cheaper and have shorter waiting and travelling times. I do not mind taking a feeder bus to the train station or bus interchange and to take a long distance bus (with few stops) to reach my destination. I am used to making transfers between bus to train and from train to train. It is acceptable to the majority of commuters who are mobile. (The needs of the elderly and the handicapped may have to be served differently).
I hope that the public will be patient and try to get used to the changes and the new system. I am hopeful that it will be better.
Tan Kin Lian
Upfront payment
There are a few cases of private schools that closed down, causing large financial losses to students who paid the upfront fees for an education course of one, two or three years. The Ministry of Education has decided to regulate the industry, because the closure of these schools has given a bad reputation to Singapore.
This reminds me of unregulated investment schemes where the promoters promised to pay back the investments after 6, 9 or 12 months at an attractive rate of interest. When the investments mature, the promoters gave all types of excuses and refused to honor the payback arrangement. Complaints to the authority and the police were not followed up.
This is also giving a bad reputation to Singapore. They also have to be regulated. It is easy for the promoters to collect money from investors and difficult for the investors to get their money back.
It is best to avoid all types of unregulated investments. There is no way for you to do due diligence, if the scheme was set up with the purpose of defrauding the public and the regulator is not willing to take the matter to court. This advice is contained in my book, Practical Guide on Financial Planning.
This reminds me of unregulated investment schemes where the promoters promised to pay back the investments after 6, 9 or 12 months at an attractive rate of interest. When the investments mature, the promoters gave all types of excuses and refused to honor the payback arrangement. Complaints to the authority and the police were not followed up.
This is also giving a bad reputation to Singapore. They also have to be regulated. It is easy for the promoters to collect money from investors and difficult for the investors to get their money back.
It is best to avoid all types of unregulated investments. There is no way for you to do due diligence, if the scheme was set up with the purpose of defrauding the public and the regulator is not willing to take the matter to court. This advice is contained in my book, Practical Guide on Financial Planning.
Land banking investments - survey
If you wish to share your experience in land banking investment or contact other investors in similar situations, click here. It can be both positive or negative experience.
Tan Kin Lian
Tan Kin Lian
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