I am sure you are aware of the recent property regulation changes to HDB ownership. If you are considering landbanking in your investment portfolio, do note that an interest in residential land, even vacant land, constitutes ownership of private property. More from this article: http://www.asiaone.com/News/AsiaOne+News/Singapore/Story/A1Story20101001-240058.html
Having alternative investments in your portfolio is important as asset classes that were previously uncorrelated performed equally bad during the last financial crisis. However, some investors may not be aware that landbanking does not fall within MAS regulations.
MoneySense has come out with a consumer guide, “Land banking – Look Before You Leap”, highlighting the risks involved in such investments. In fact, the same cautious approach should be taken towards investing into other popular, unregulated instruments like Gold Bars and Wine. Most investors find such instruments palatable because it deals with physical goods and they are promised fantastic returns. However, like any investments, risks exists and investing through unregulated platforms is not encouraged.
News of such unregulated investments:
1. Land Banking – “Get Rich Quick” Property Scheme, 200 Lose $6m in Land Deals
2. Gold Bars – Tan Kin Lian’s Blog: Invest in Gold Bars, 60 Duped in Gold Bar Scam
3. Wine – Wine Deal Goes Sour, Investors worried after firms being investigated close shop
You can still invest in Real Estate, Gold Bullion and Wine through MAS regulated securities. Let me know if you like to find out more.
Hope you enjoy the read the have a great weekend ahead!
Grow Wealth 