Hello everyone,
I just received a phone call about an hour ago from a representative of Kelana Setia, who wanted to introduce me to a land banking opportunity in Folkestone, Kent, UK.
After checking the summary which he emailed to me, some things don't seem quite right:
1. The purchaser is entitled to receive yearly payout totaling 15% of the principal amount over the first 3 years (payment will be made at 1.25% per quarter for 12 quarters). Essentially this means you would get a 15% discount over 3 years.. this already sounds too good to be true.
2. Apparently we can expect yearly capital appreciation of up to 30%. The purchaser would be buying a plot of raw land, how can you get such high capital appreciation unless the land is quickly sold to a developer for other purposes?
A quick Google search of Kelana Setia turns up the following page as the first result: http://kelanasetiascam.blogspot.com/
The author has summarized very nicely other important points of why he feels this is a scam, including:
-no company profile on the company webpage (http://www.kelana-setia.com)
-small total plot size (which is the exact plot size mentioned in the Powerpoint presentation sent to me)
-lack of proof of actual value of land, etc.
If I have missed something out, and the more experienced among you can point out why this is not a possible scam, please let me know.
Is this UK land banking a scam?
Moderators: alvin, learner, Dennis Ng
Re: Is this UK land banking a scam?
just search UK Land Scam in the internet and see what results you can find.
Cheers!
Dennis Ng
Cheers!
Dennis Ng
roychen wrote:Hello everyone,
I just received a phone call about an hour ago from a representative of Kelana Setia, who wanted to introduce me to a land banking opportunity in Folkestone, Kent, UK.
After checking the summary which he emailed to me, some things don't seem quite right:
1. The purchaser is entitled to receive yearly payout totaling 15% of the principal amount over the first 3 years (payment will be made at 1.25% per quarter for 12 quarters). Essentially this means you would get a 15% discount over 3 years.. this already sounds too good to be true.
2. Apparently we can expect yearly capital appreciation of up to 30%. The purchaser would be buying a plot of raw land, how can you get such high capital appreciation unless the land is quickly sold to a developer for other purposes?
A quick Google search of Kelana Setia turns up the following page as the first result: http://kelanasetiascam.blogspot.com/
The author has summarized very nicely other important points of why he feels this is a scam, including:
-no company profile on the company webpage (http://www.kelana-setia.com)
-small total plot size (which is the exact plot size mentioned in the Powerpoint presentation sent to me)
-lack of proof of actual value of land, etc.
If I have missed something out, and the more experienced among you can point out why this is not a possible scam, please let me know.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
In real estate investment I feel land banking investment is very uncertain.
When u invest u must ask yourself how u make money. Example the gold investment there should not be yield and they are using u money to pay u.
For land banking, they got to successfully sell the land to the developer than they can exit. All other form of repayment is not real and if they have is to build confidence and get more people to invest.
Depending on the company, i don't think all are scam just that in today market, I know in uk, USA, certain part of Europe there are tones of distressed property that are selling below their construction cost, so why would developer need to buy land. I buy a couple of houses every month for less than 50% of their construction cost and make money before market recovery, hence it is hard for the developer to buy land and build and still make money.
For those who invested in canada, i think land in Canada is still safer than other in uk or usa.
When u invest u must ask yourself how u make money. Example the gold investment there should not be yield and they are using u money to pay u.
For land banking, they got to successfully sell the land to the developer than they can exit. All other form of repayment is not real and if they have is to build confidence and get more people to invest.
Depending on the company, i don't think all are scam just that in today market, I know in uk, USA, certain part of Europe there are tones of distressed property that are selling below their construction cost, so why would developer need to buy land. I buy a couple of houses every month for less than 50% of their construction cost and make money before market recovery, hence it is hard for the developer to buy land and build and still make money.
For those who invested in canada, i think land in Canada is still safer than other in uk or usa.