Asked by Anonymous
Asked on 27 Jan 2019
Seen their Facebook page (https://www.facebook.com/theiquadrantgroup/), am interested. But seems to be a scam. Just want to check it out.
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.
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:
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!
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.
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.
For the record, iQuadrant is now on the MAS watchlist.
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.
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:
I am not an expert in this subject matter. Definitely keen to hear different point of views!