• All blog entries
    • Calculators
    • Case studies
    • Cost of living
    • CPF Are You Ready?
    • CPF Matters
    • Credit Management
    • e-Learning
    • Estate Planning
    • Events
    • Financial advisers
    • High Networth
    • Insurance
    • Investments
    • Letters to the Press
    • Magazines
    • Others
    • Retirement Planning
    • Scams
    • Surveys
    • Tragic Stories
    • Unethical sales process
    • Videos
  • Legal
  • Testimonies
    • Individual testimonies
    • Gallery
  • My Account
Hi, looking for a fee-based financial planner in Singapore? Read this article now!
  • Home
  • About
    • About Wilfred Ling
    • Why do you run your own professional financial planning practice?
  • FAQs
    • FAQs on Wilfred Ling’s Financial Services
    • FAQs on Financial Planning
    • FAQs on Investments
    • FAQs on Insurance
    • FAQs on Estate Planning
  • Services
    • Overview
    • Create a financially secure plan for your young family (package details)
    • Retirement Planning
    • Investment Portfolio Management
    • Insurance Planning
  • Fees
  • Cool Tools
  • Contact
  • Subscribe
You are here: Home / Investments / Land banking company uses many financial advisers to sell

Land banking company uses many financial advisers to sell

19, June 2009 by Wilfred Ling Leave a Comment

land

There are many exotic investments that make your mouth water. One exotic is called Land Banking. I was approached by one land banking company to market their product and this is what I was told.

They told me that the land banking gives out 11% commissions! Of course the salesman do not get it all because he has to share with his team leader and the team leader has to share with his group manager and the group manager has to share it with the regional director etc. Anyway, the salesman can expect to get 6% in terms of commission. if his production is good he can be promoted and thus get a bigger cut in the commission.

The product is "insured" by an insurer so that if the maturity value fail to meet the intended return, the insurer will make up the losses. The insurer is some far far away country which I never heard of. I think I got more money than that insurer!

There is no guarantee that the product will mature. The project can be 1 year, 2 year (if lucky), 10 years, 20 years, 100 years, 1000 years. Nobody will ever know.

One significant problem with land banking is that the valuation of the lank is not transparent. So you never know whether the price you buy or sell is a fair price.

Finally, capital gain taxes and foreign currency risk can make your investments become very risky.

If you want to invest in land, it is better to buy a landed property in Singapore (free-hold preferably). At least you can see, call for a valuation and sell it all in Singapore.

For your information, land banking salespersons are mostly those who work in the insurance industry and IFAs. When I went to the company to hear them brief me, they told me that advisers from Great Easten, Prudential, IFA firms distribute their products.

Be careful whom you buy your product from.

________________

Update 23 April 2014:

The Land Banking company has collapsed. The land banking company I am referring above is Edgeworth. See article:  Former London politician Vaughan Minor, business partner point to mortgages placed on properties as root of financial loss.

Like this article? Subscribe to my newsletter below for more.

Get regular Tips on Financial Planning. Free subscription for 3 years. Covers all aspect of financial planning such as 'How much salary you should have?', 'How to avoid insurance that is not suitable?", 'What are the retirement planning methods?", etc

Share this:

  • Tweet
  • Print

Related

Filed Under: Investments, Scams

What do you think? Leave a comment. Cancel reply


WILFRED LING, CFA

WANT TO GET REGULAR TIPS ON FINANCIAL PLANNING?

JOIN with thousands of other subscribers in getting tips on all aspect of financial planning such as "What is the minimum salary required?", "How avoid insurance that is not suitable", etc.


WILFRED LING IN THE NEWS

Click HERE to find out more.


THE KIND OF CLIENTS I AM LOOKING FOR

NEW TO US?

Learn how you can fully benefit from this massive website: HERE

For Registered Users Only (free)

  • How and what to invest now? (Webinar) 28/7/2022
  • How to identify high performing unit trusts in 3 steps (Webinar) 3/9/2021
  • Financial Planning – Christian Perspective Part 2 (Webinar) 14/8/2021
  • How and what to invest now? (Webinar) 22/7/2021
  • Financial Planning – Christian Perspective Part 1 (Webinar) 10/7/2021

View All

For Clients Only

  • Video Message to Clients 30/12/2021
  • Exclusive client-only Investment Update Webinar by Wilfred 26/11/2021
  • JPMorgan Guide to Market Q2 2020 15/4/2020
  • JPMorgan Perspective Q2 2020 15/4/2020
  • JPMorgan Guide to Market Q1 2020 5/2/2020

View All

Top Posts

  • Strange way of how CPF Interest is calculated & retirement planning CPF has a rather strange way of calculating interest. I...
  • Access Information & Sign Up Page
  • CPF: How to Accumulate $1m in your CPF by 57? I read online that there are people who wants to achiev...
  • List of all blog articles
  • Vanguard funds in Singapore at just US$ 20,000! Vanguard is the world’s most famous index fund provider...

Recent comments

  • Sinkie on Why Vanguard Fund Investors Underperformed The Fund Significantly?
  • Sinkie on Why You Always BUY HIGH In Investments?
  • honest_me on Cancer patient ends up with $33,000 bill after insurer refuses to pay for drug & what you must do to avoid this situation
  • susan on Single Premium NTUC Income SAIL
  • susan on Single Premium NTUC Income SAIL
  • LittleTiger on Nomination in insurance policies

To be notified of new blog post, like this facebook page

To be notified of new blog post, like this facebook page

Read articles based on different categories

Investment Login

iFAST Central: Login

iFAST Prestige: Login

Navigator: Login

Chartered Financial Analyst

CFA

Chartered Financial Consultant

ChFC

Featured Blogger

IM$avvy

© Copyright 2006-2022 Wilfred Ling

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore

hollow-nasty
hollow-nasty
hollow-nasty
hollow-nasty