I recently seen the I Quadrant's advertisement on Facebook where they advertised to help Singaporeans own 34 properties in 2 years with little or no money. Is it MAS approved? What are the risks? - Seedly

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Asked by Anonymous

Asked on 27 Jan 2019

I recently seen the I Quadrant's advertisement on Facebook where they advertised to help Singaporeans own 34 properties in 2 years with little or no money. Is it MAS approved? What are the risks?

Seen their Facebook page (https://www.facebook.com/theiquadrantgroup/), am interested. But seems to be a scam. Just want to check it out.

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Jacob Chong
Jacob Chong, Executive Financial Advisor at PIAS

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Level 3. Wonderkid
Answered on 30 Jan 2019

Hmm.... Honestly I am very intrigue by their so call 0 downpayment and owning all the 34 properties without any cash down payment.

I have been in the Banking industry long enough to know where they are going on with the scheme of theirs.

Lets take things into prespective:

Legally, if you are to own another property (investment) you will be subjected to ABSD of 12%, Legal Fee, and what have you, of about 15% in total... That's to the Government. Now after securing your so call investment property, you have mortgage to take note, Maintence fee, rental, Property Tax, insurance etc....

I have seen people doing de-coupling of properties so as to escape the ABSD, then what about the legal fee and the rest.... (In the end, its the lawyer, the bank and the Agent most of all the earns the most) not you. Think about it, when you have no financial means to pay the mortgages who is being sued?

Bank takes back the property (no lost)

Lawyer wash their hands off, because they are only doing the conveyance (money already collected)

Agents earned their comm and now long gone (again money collected)

You? Charged for bankrupcy because you should have known better about your finances.

The funny thing about all these that I have mentioned there are still people in Singapore wanting to buy up property for retirement, for captial gain. When these ads comes up in FB or any social media many rushes in to see and roped into it. A 1million property (which is very rare now) would cost you to lose 15% to the Government. Thats a Whooping 150k. How then can you make back this 15% initial Loss in a matter of 2 years, 3 years or even 5 years....

Foreigner you say? Foreginers will make up for that 15% lost you made. Statistically, you will know you are just trying to comfort yourself. Government has already limited the number of Foreigners into Singapore, and looking that the tax that they are paying i doubt so.

What they are trying to make up is a Private investment scheme to properties under many co-owners pulling funds and resources together and since you have a miserable 5% share of the subject property you are considered as OWNED A PROPERTY.

I don't know about you but i will Definetly GIVE this A BIG MISS. When Sh**s hits the Fence, you know those gurus that say they are just teaching Singaporean how to own 34 properties for free(trust me they get kick backs from lawyers, agents, developers there is no such thing as free) are already long gone and there isn't a think you could do to them because they are not regulated.

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Kenneth Fong
Kenneth Fong
Top Contributor

Top Contributor (May)

Level 5. Genius
Updated on 27 Jan 2019

Hi anonymous, that's a great question and one which was talked about in a recent article here (if you'd like to read more).

From a property investor's perspective, here are some key concerns:

  • What're the consequences if fellow co-owners don’t pay up (especially if loans are involved)?
  • How are you going to evaluate the competence of the manager(s) in charge
  • How easy is it for you to sell your share?
  • Is there such a thing as guaranteed rental rates? (Hint: there isn't)
  • This kinda sounds like buying a REIT, but does it carry any 'unnecessary' level of risk?

As Jimmy Lim stated, I highly doubt that this I Quadrant venture is MAS approved. And as is with all investment instruments (especially those that sound too good to be true), always do your due diligence!

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Its definitely not MAS approved, not saying that is a scam, but MAS does not need to approve every single business.

I would not say its a scam, but its definitely a lot less possible that what they made it up to be. Generally their proposal is closer to an informal REITS among the participants. So why not buy REITS instead of forming your own "reits" with other participants?

Because that can NOT be packaged and sold in a $2997 course. =)

Its more emotionally and prideful for participants to say "I own 34 properties" than to tell people, i have money in a few big REITS thats enough for me to retire with real passive income, no effort, tax-free income, no worries on big economic downturn or bank loan squeeze, and hassle-free investment thatI started in my youth with a couple of hundreds.

Sidenote: I know of at least 2 experienced investors who went bankrupt during 1997. They too were living the dreams back then, leveraging on bank loans and buying condos, industrial properties. Good money.

Once the economy started south, bank will squeeze the rates higher, or ask for top ups to maintain the loan ratio, then you can't sell or rent out because everyone are desperate and then boom!

If you really like properties returns (I will say stock or ETF returns are better than properties) then go for a few REITS. You will be thankful when crisis hits.

if you can't remember 1997 because you are too young, then thats what the course sellers want.

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Kenny Ljz
Kenny Ljz

1w ago

Well informed and intelligent answer. Kudos!
Cedric Jamie Soh
Cedric Jamie Soh

5d ago

Thank You!

It is never MAS regulated as MAS does not regulate real estate investments. The regulator that would concern this is the Council for Estate Agencies. You may try raising your concerns to them about the I Quadrant's Facebook advertisement.

Given a choice, I would rather own and rent out 34 fine arts with money down, and I won't have loan repayments and stamp duties to worry about.

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Junus Eu
Junus Eu
Top Contributor

Top Contributor (Aug)

Level 8. Wizard
Updated 2d ago

PSA - I Quadrant is listed on the MAS Investor Alert list:

You can routinely check it here: http://www.mas.gov.sg/IAL.aspx?sc_p=A

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Gordon Xu
Gordon Xu

06 Aug 2019

😱
Keh Er
Keh Er

2d ago

Thank You!
Yeap Ming Feng
Yeap Ming Feng, Head of Content & SEO at Seedly

()

Level 5. Genius
Updated on 07 Jun 2019

If you have been seeing a lot of such ads around which got you interested, there might be a few things you wish to take note of.

A good article to shed some light on this heavily advertised property investing scheme can be found here: https://blog.seedly.sg/own-x-properties-in-2-years-with-no-money-down-is-it-a-scam/

I will just do a quick summary on this:

  • Technically, it is not a scam or anything. It is just an area where there are lesser rules and regulations with regards to this. Lots of legal grea area and MAS has yet to step in.
  • You are looking at co-owning commercial properties, as there is no ABSD, and also, it can be rented out for higher yield. However, do note that, you do not technically own them, since you do not have the "keys" to these properties.
  • There is little idea on what will happen to your investments should the company cease to exist. Unlike REITs that are traded on the exchange, whatever measures they have in place may lack the necessary foundation with regards to "tanking" investors' loss.

I am not an expert in this subject matter. Definitely keen to hear different point of views!

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Teo See Hwa
Teo See Hwa

30 May 2019

Just need to read the words between the lines.
Teo See Hwa
Teo See Hwa

30 May 2019

I just bought a 1 bedroom Freehold at $704,000 with no income and no ABSD while owning 2 private condo and a HDB. The Devil is in the detail.
William Ng
William Ng

()

Level 2. Rookie
Answered 2w ago

Buy Reits better...

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Gordon Xu
Gordon Xu

()

Level 2. Rookie
Answered on 06 Aug 2019

Personally I have attended the Full Course, In my own opinion its not worth it and tome its a total waste of my time. if i am given a choice to choose again I will not join the course.

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Ryan Ong
Ryan Ong

()

Level 2. Rookie
Answered on 04 Jun 2019

For the record, iQuadrant is now on the MAS watchlist.

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Colin Lim
Colin Lim

()

Level 3. Wonderkid
Answered on 29 May 2019

I hate to write la.. But it is possible.. There will be risk. There are plenty of ways as long as u know each and everyone.. Like the banking side, property sides.

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Budhi Darmojo
Budhi Darmojo

()

Level 2. Rookie
Answered on 29 Apr 2019

Beware...all these Crooks! money gone is...gone!

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Murdoch Gabriel
Murdoch Gabriel

()

Level 1. Freshie
Answered 2w ago

When it's too good to be true. Think again... But is it possible to have so many properties in 2 years? Yes, u can... Its call flipping. However, I do not suggest do it in SG as the market quite small. You can consider developing countries like the Philippines or Vietnam or Cambodia. However its all at ur own risk so please do ur due diligence. I do have 10 units in the Philippines... This is after months of background checks, research and I even made a trip down to see as well. Wishing all the best.

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