So upon arrival we were greeted by a client and relationship manager or a salesperson who would explain about how the concept of land investment works. We were also given free food (breakfast and lunch) and RM 100 Parkson vouchers but it's just sort of a gimmick to get you interested. There's also some idle talk before that to get things, and to be honest, they're really smooth talkers. Here's how the concept works:
- 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 were 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 through a voting after the land has been rezoned and after 15 years. But the land must be sold no matter what when it hits the 20 year mark.
- UK has a housing problem and land will only become lesser and lesser. And if I'm not wrong the Government needs to build about 30 million homes by the year 2026.
- 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 about RM 67000. An initial deposit of 10% was required and could be paid by credit card. The balance could be paid by credit card and UOB cardholders could even pay by interest-free 12 months installment plans.
In the end we decided that we're not going to invest for some reasons. But I did get to learn something, which is a good thing. No pictures for this event though. And this will be my last post till I'm back from Penang. Good luck to all SPM candidates also!!! =)

















