Jardine Smith International (Land Investment)

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Jardine Smith International (Land Investment)

Postby Sniper Angel » Mon Nov 29, 2010 10:30 am

Hi All,

Had anyone been invited by Jardin Smith International, a local company that sells UK land to investors in Singapore and other countries? We went one last Saturday where it was held at Ritz Carlton Hotel.

Upon arrival, we were greeted by a client relationship manager (or salesperson), whose job was to make us at ease & explain how the concept works. There was some cocktail spread refreshment & as usual the idle talk before get into the real business.

Anyway, just a summary of what they had shown us as follow:

-The company purchases a plot of greenbelt land. This is land that cannot be developed unless it is rezoned (a process known as getting planning permission) by the government.

-The land is sub-divided into many smaller plots and sold to investors.

-The company retains 25% of the land so that it is also “vested” along with the investors.

-The company goes out to apply for planning permission. This process will take many years. As such, this is more of a long term investment. We are told this would take five to ten years at the minimum.

-Once planning permission is obtained, the value of the land will rise 5-10 times (from your purchase price) and you can realise your gains when the entire site is sold. In Jardin Smith International’s case, 60% of the owners will have to agree before it can be sold.

The reasons why we should investing in UK land (as told by the company) are as follows:

•UK has a housing problem and land will only become lesser and lesser.

•The price of land has been increasing steadily (About 20-fold in the last 15 years).

•2012 Summer Olympics will be held in London and this will have positive effect on the property market.

The plot on offer by Jardin was being sold for a cool $30,000 with some kind of bonus discount. We were quite tempted but $30,000 is quite a huge amount of money. The Manager then offer us a smaller plot of land which amount to $20,000.

In the end, we decided not to go ahead as we have to part away $20,000 & wait at least 5-8 years for the profit. At least we get some kind of shopping vouchers as a token for attending the event.

Sniper Angel
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Re: Jardine Smith International (Land Investment)

Postby Daddy D » Mon Nov 29, 2010 10:52 am

Sniper Angel wrote:In the end, we decided not to go ahead as we have to part away $20,000 & wait at least 5-8 years for the profit. At least we get some kind of shopping vouchers as a token for attending the event.[/color]


Always do your own homework when it comes to investment...
"at least 5-8 years for the profit" is their projection to you... it could be MORE...

At least u got your vouchers... how much again?

:celebrate:

Daddy D
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Postby hapydino » Mon Nov 29, 2010 10:55 am

yes, gotten a few phone call invites liao so far.. but we not interested and turned them down.. was promised lunch and etc but we feel its a scam.. as no 'fat toad running around the street' and we subscribe to the belief no free lunch in this world..

oh but we once attended time share thingy conducted by Marriott Vacation Club and got $200 taka vouchers and free parking @ Taka for 3 hours.. :p

hapydino
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Postby BigDevil » Mon Nov 29, 2010 12:04 pm

Read this article: http://www.learnmoney.co.uk/advice/advice-87.html and do think twice before taking the plunge!

BigDevil
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Postby kingster » Mon Nov 29, 2010 5:11 pm

hapydino wrote:yes, gotten a few phone call invites liao so far.. but we not interested and turned them down.. was promised lunch and etc but we feel its a scam.. as no 'fat toad running around the street' and we subscribe to the belief no free lunch in this world..

oh but we once attended time share thingy conducted by Marriott Vacation Club and got $200 taka vouchers and free parking @ Taka for 3 hours.. :p


haha same here... went for the same talk as u and got the vouchers too! really surprised that can get the vouchers even though we didn't sign up

kingster
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Postby UncleLim » Sat Dec 04, 2010 1:47 pm

Hi Sniper Angel,

It was wise of you not to make a hasty "investment" decisions.

There are numerous similar "opportunities" being marketed locally because they are not pulling in the crowds in their home countries.

Rule of thumb is not to buy or invest into anything you do not have time to research into and investigate. If you are really interested, you have to make the time to fly there and look at the "land" and their head office. Talk to the actual people and understand the legal stuff. A sales pitch by local "representatives" is not enough because when something goes wrong, the sales people simply disappear or deny involvement.

I used to live in the UK for a few years and was familiar with the property in my neighbourhood. Lately I found one of the developments being sold in Singapore. The prices are ridiculous because they know many of us are to lazy to do research. We simply think it might be a good buy relative to Singapore property.

Look, and look, and look again before jumping.

UncleLim
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Postby ZacK » Sat Dec 04, 2010 10:20 pm

Better to be safe than sorry... Another company that is supposedly into UK landbanking that has gone ...bad... :spank:

http://www.straitstimes.com/BreakingNew ... 71363.html

http://singaporeuncletrader.wordpress.c ... roup-scam/


MAS Investor Alert : http://www.moneysense.gov.sg/check_our_ ... l_IAL.html

Extract: Consumers are strongly encouraged to deal only with persons that are regulated by MAS. MAS' regulatory regime aims at safeguarding the interests of consumers by ensuring that only competent and professional persons may provide financial services. The laws administered by MAS also require disclosure of information on investment products being recommended to consumers. If a consumer chooses to deal with persons that are not regulated by MAS, he forgoes the protection afforded under laws administered by MAS, particularly if these persons are based overseas.

Before you decide to part with your money for investment purposes, (1) better to check if the firm you are dealing with is regulated by the MAS, (2) Check if the firm is on MAS Investor Alerts.

Money is not easy to come by for most of us so let us not be easy prey to cons out there who will make us lose our money :pray:
Last edited by ZacK on Mon Dec 06, 2010 1:34 pm, edited 1 time in total.

ZacK
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The use of minimum in English land banking schemes

Postby JoeP » Mon Dec 06, 2010 1:20 pm

Management Summary :D
1) based on JSI sales talk you have a range of 5 years to never to get your "profit"
2) based on the UK local authority written reports you have a range of 16 years to never to get your "profit"
3) If the land is not developed you probably cannot get your money back for 50-100 years or so and you would be better leaving it in the bank (you get interest plus access/ liquidity in the bank and banks fail a lot less often than land banking companies.)
4)Based on the record since 2002 there have been zero successful conversion of UK green belt land banking plots under these schemes and 9 out of 10 companies offering them have failed or are under investigation.

Zero successes to date multiplied by 90% failure rate of companies in this business is a very high risk. Not sure why anyone would be tempted by this. Glad you had a nice dinner though.


Detail for nerds and lawyers 8)
"wait at least 5-8 years for the profit"


This is a typical land banking misleading statement. By definition there can only be one "least" or minimum value. By giving you a range of least or minimums you are expected to assume the bigger number is the most or maximum time you will have to wait.
The question you should ask is what is the real "most" or maximum time you can wait. The answer to that is never. This is green belt and protected land. It may never be developed.

Secondly if the JSI land in question is Gerrards Cross then the local authority has said clearly in writingthat they have no need to look at greenbelt until 2026 at the earliest for housing. They have enough non-greenbelt land to meeting housing needs until then. Even then they have a lot of greenbelt owned by local voters and influencers so why would they need to deal with non-voting profit seeking plotholders in Asia?

Thirdly JSI will say "not to worry land goes up by average 5% every year anyway so you cant lose". Land may go up but based on the true value of greenbelt land not the price you are paying. Landbanking companies mark-up the land by 10-100 times its open market value. So without planning permision at 5% per year land inflation it might take you 48-96 years to get your money back compared with leaving it in a shoebox under the bed at zero interest.. That assumes that in the meantime you can find a seller, and the UK authorities dont seize the land back because you have not been maintaining it. If someone dumps an old car on your land and a kid gets injured playing, it is your legal and financial responsibility. If someone uses your land for 12 years without objection they can make a claim for it. I know this because i've claimed land as part of a garden after 12 years and won.
The only case I know of where people have sold land banking plots is where they have complained loudly ( or in the courts) and got their money back. Typically this is followed by a flood of refund requests and the land banking company fails without paying the majority.

Finally past performance may not be a measure of future performance but be warned. There have been no recorded conversions of any UK land banking plots sold under these schemes by Profitable Plots, Jardin Smith , UKLI, Land International or any other land banking company operating in Singapore and Malaysia. Ask JSI to confirm IN WRITING a single site that has converted and they will tell you vaguely that some of their other sites have good prospects to convert. Based on UK local authority feedback none of them have prospects.

JoeP
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