The risk of buying raw land

Buying raw lands came up as hot topic in Singapore news as a group of investors have trouble with their investments with raw lands and other investment products.

When I was at the Asian Investment Fair last weekend, which was held at Suntec City, I also have an adviser sharing with me about the benefits of investing in raw land. The raw land project that was shared with me was situated in one of the state in US, quite far away from Singapore.

Through the discussion with the adviser and based on my limited knowledge of investing in raw land, I find that it can be very risky, although given the natural risk-return matrix, the absolute return can be as high as 25% compounded.

Some of the risks I noted is the following:

1) Change in zoning law
2) Litigation Issues
3) Population Trend/Potential Demand
4) The direction of development from the developed city.
5) Laws of ownership and form of ownership

Like all investments, there are a lot of things that investors should study when investing in real estate, especially raw land. I personally feel it is better to be down personally to do some scouting and research, before one commits to such investments. Now although the costs can be high, at least it buys some assurance and build your confident in the investment.

As like all investments, I urge investors to do as much research as possible before they commit their hard earn money. Investors have to note for every large return, there will be huge risk behind. Study hard and ensure that you have reduce that huge risk to the minimum before you commit.

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Should I invest in Gold?

"Should I invest in gold?" I think that is the question that is ringing in any investor's mind. Gold has broke the USD$1100 barrier when I am writing this and some people are predicting that gold will reach the price of USD$2000.

Recently I read this book "Guide to investing in Gold and Silver" and inside it puts a strong case for investing in Precious metals, mainly gold and silver. Why I said it is strong because it uses history to tell us that precious metals should feature in most people's portfolio. In this book it also shows us that there are cycles but these cycles is a derivative of certain numbers that we need to work to get it. I strongly urge everyone who is concern about their financial future to read this book.

There are many ways to invest in Gold and Silver and the bank that has such investing facilities available is UOB, based on my current research. You can either open a savings account that is counted in grams or ounce depending on which precious metal you are investing, or own certificates, bullion coins or gold bars. Each will have its pros and cons. You may visit UOB website to have a look and figure out which investment tools will fit your need.

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Dealing with Retrenchment

Dealing with retrenchment is something out of most people's mind during a boom time. As such most recent graduates would not have any idea how to deal with retrenchment.

Do you know how to deal with retrenchment? Do you know that the preparation for a possible retrenchment is done during the boom time? For instance, controlling your budget and preparation for emergency funds.

Retrenchment is going to be very common now given the short span of boom and bust cycle, as such it would be good to equip yourself with the knowledge of dealing with retrenchment.

For more information on how to deal with retrenchment, please click here.

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Dirty Tricks of Bad Real Estate Agents

Dirty tricks by bad real estate agents is something all of us should know since in our lifetime, we are expected to deal with properties at least once. So here are some of these tricks. Readers do take note of it when engaging real estate agents

Refusing to Co-Broke Property

Co-broking occurs when there are two property agents involved in a single transaction. In a co-broke transaction, the commission have to be shared out between the two agents. Some agents who refuse to share the commission would refuse to meet up or follow up clients from other agents. As such, the seller would not have the full exposure to the market.

Overpromise

Some agents promise that he has a ready buyer who can come up with high price, so that the property seller would appoint them as their agent. Such would force the seller to sell at a lower price than expected because once they realise the agent is lying, it might be too late.

Working for more than one company

Some agents may work for several company, so as to get as much client listing as possible. And because different companies have different payment structures, an agent might close the deal under the structure that is favorable.

Hijacking

Hijacking refers to an agent going behind the back of another agent and engage directly to the clients, promising better deals and urging them to sign with him instead. Such act is deemed unethical, and property buyers and sellers should try to avoid, as you never know you might need the help of these other agents.

For more information on property investment, please click here.

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Credit Bureau and Credit Counselling

Credit Bureau of Singapore recently announced that many Singaporeans are falling back on their credit card debts. The most 'dangerous' group are those in the age of 30-45.

This age group is not surprising as this is the age group where most people are taking on a lot of debt like mortgage loans. Thus it is important that one manage debt carefully or they may overstretch themselves. Do note that you need to manage your loans carefully because it may affect your credit history. It is well understood that banks will disburse loans to you based on your credit history. If you have a bad credit history, banks will be quite unwilling to disburse loan to you unless a higher interest can be charged or your financial situation will be greatly scrutinized which can be troublesome and uncomfortable.

If you feel that you are falling behind on your payments, you should start controlling your 'outflow'. Do note take on more debt but instead pay down your loans as soon as you have the cash. The interest rate charged on credit cards is 24% per annum and 18% for credit line. These are very high interest rates, as such these loans should be cleared first before you take on more.

If you feel very stretched, approach the bank or the Credit Counselling Center in Singapore (CCS) for help. Banks are generally more willing to help you with your loans than you thought.

Below are the contact details for CCS:

Tel: 1800 CALL CCS (1800 2255 227)
Please ensure to dial 1800 before
2255 227.

Address: #12-01 Maxwell House
20 Maxwell Road
Singapore 069113

Email: enquiry@ccs.org.sg

Opening Hours: Mondays–Fridays, 9am–6pm

Website: http://www.ccs.org.sg

Want to know more about good credit management? Please click here.
Want to know how to better use your credit cards? Please click here.

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