Interview: Alternative Real Estate Investments, Miss Lee Loo Yen Today we have with us Miss Lee Loo Yen who will tell us a bit more about land banking.
ABOUT US: www.PropertyBuyer.com.sg is a Research Focused Mortgage Advisory that helps people to find Home Loans or Refinancing Loans. We do NOT simply emphasize cheap loans, but rather we use a balanced Risk versus Benefit approach and match that with the Home Owner's financial circumstances to create the best fit and customized home loan.
Call us at 6100-0608 or contact us at: http://www.PropertyBUYER.com.sg/contactus.php How long have you been working as a land banking advisor?
One year.
What were you doing before that?
I was in sales and operations in a travel company.
What made you decide to become a land banking advisor?
It was a journey of learning about financial literacy and serendipity which got me here.
Why do you think it is important for land banking investors to know before they invest in land banking?
They need to understand their own objectives. As for me, I strive to understand the customers' risk profile and needs, and constantly looking out for my customer's interests. Ultimately many of my customers (Investors) are also my friends and I do have to be accountable to them.
I will not sell something which I don't buy myself.
There's no perfect wealth-generating instrument out there. Given methodology on how wealth is engineered, the risk-returns ratio, the quality of work which the company produces, land banking with this company, is by far the best instrument, from what I understand.
What qualities do you think a land banking advisor needs to have before he/she can do well?
Everything I do, it must be one notch better. I can't pin-point one.
What do you think are your specialties and strengths? How do you value-add to your customers?
Being an active social networker, most customers becomes friends and one of the the value-adds I bring to my customers is perhaps my network. After understanding my customer, if there are areas which I can help, I'll help. If not, I'll look into my network to see what can be done.
What are your views of the property market for the next 6 months?
My views are perhaps very similar to the masses. Perhaps the sales will slow down. Singapore economy slows, so many condo TOP, so many people losing money... These may cause people to hold back big purchases. Then again, the pent-up demand is definitely there, so the price may not drop as much.
Is now a good time for new investors or home buyers to enter the market given the weak consumer sentiments in North America? Why or why not?
People looking for investment homes, can consider getting in now. Just be aware of the risks. There are always negative equity and vacancy risk. But if that should happen, it could be temporary (depends on location/ condition of the house too) because population are increasing in some cities all the time. You just have to manage your expectations and understand your own risk profile.
If you were to invest now, what property/projects would you buy? Why?
I wish there are more studio-apartments around in the city or near schools. Especially for expatriates, buying a car is a massive investment. They usually live alone, and appreciate privacy. So they probably prefer an accessible location. Young single Singaporeans also like the concept. Hence the demand for studio apartment is massive.
What type of returns would an investor get from Land banking? How secure are these? Is the capital gains taxable?
We do not offer guarantees for land banking. The rate of returns we project is around 15-20% simple interest per year.
Yes. There's capital gain taxes payable when the land is sold. It is around 15% for US projects, and 20-over% for the Canadian projects.
In your opinion, is there any "secrets" to do well and make money from property investing or land banking investing?
Patience and due diligence are the keys to success... then 'Just do it.' as what Nike says.
What advice can you give a new homebuyer or property investor who is thinking of buying his first plot of land?
Understand what your objectives are first, then find out about your choices. Perhaps I am biased. Buying land is almost a no-brainer, because it is simple and hassle-free. It is really good to start as soon as possible, to take advantage of the power of compounding.
Do you invest in the Singapore property market? If yes, what properties do you currently own? If not, why not?
No. I'm ready for an enormous credit like a house yet. But I am investing in land, which is more affordable and also there's no liablility. My portfolio of Land is a fully-owned and paid for. And it probably will generate around 15-20% per year, which is decent earnings compare with buying another house in Singapore.
Loo Yen, we at PropertyBuyer.com.sg would have to agree with you on that. Many people who bought houses (I mean condos) in 2007 or 2008 could have been hurt by falling property prices.
Anyway, Why not land banking in Singapore? Is there a reason?
Land banking is not possible in Singapore. The reason is that most of Singapore land are government owned. Technically speaking, there's only one land banking "company" in Singapore, that's the Singapore Government, and they are also the Urban Planner, ie, the URA. There's no room for another land banking firm to operate because there's simply not enough land.
The land is so far. A investor can't see, touch, smell it. Why should they buy an oversea plot of land?
They should buy it if they want to take advantage of the wealth-creation opportunity in land. People are always moving into certain cities. There are just a limited amount of land in strategic locations. When you are a land-owner, you are owning part of the valuable raw material, which the city eventually needs to buy it from you. Land bankers have a niche and essential position to play further value-adding the land, by doing the concept planning for the land.
We thank Miss Lee Loo Yen for accepting this interview. Miss Lee cannot reveal the company she works for due to strict company policy, but if you could contact us, we will let her know your questions.
Should you have any questions for her, please let us know at: -
info@PropertyBuyer.com.sg
or call us at +65 - 6100 06-08
If you have interesting insights to share, please let us know.
ABOUT US
About the Author
www.PropertyBuyer.com.sg is a Research Focused Mortgage Advisory that helps people to find Home Loans or Refinancing Loans. We do NOT simply emphasize cheap loans, but rather we use a balanced Risk versus Benefit approach and match that with the Home Owner's financial circumstances to create the best fit and customized home loan.
Call us at 6100-0608 or contact us at: http://www.PropertyBUYER.com.sg/contactus.php
Wednesday, March 4, 2009
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