Buyers, be aware...
Regulate marketing of foreign properties here
Published on Oct 23, 2012
SINGAPOREANS have been buying overseas properties for years.
While it is always a case of buyer beware, there are several disturbing points about the way some overseas properties are marketed here:
Some agents recommend buying several properties instead of one, which encourages over-leveraging.
The selling price of a property is jacked up, with the promise of guaranteed high rental yields.
But, after a few payments, the company files for liquidation and stops payment for the "rent".
The same modus operandi is repeated.
However, there is no recourse for the buyer as this is not considered fraud in the countries where the properties are located.
In some cases, after a buyer signs on the dotted line, puts down a 10 per cent deposit and takes a loan for the remainder, the developer goes bust and the project is left in limbo.
However, the buyer is still liable for the loan, even if the project had failed.
Some agents specialise in buying such loans from banks at distressed prices and pressing for the loan repayments.
The authorities should step in to regulate those from overseas who come to Singapore to market their projects.
If they are giving talks about properties, they should be deemed marketing agents, and should be subject to the same rules as other agents.
If a company wishes to market a project, they must have a bank guarantee of 30 per cent of project value until the completion of the project.
http://www.straitstimes.com/premium...te-marketing-foreign-properties-here-20121023
Regulate marketing of foreign properties here
Published on Oct 23, 2012
SINGAPOREANS have been buying overseas properties for years.
While it is always a case of buyer beware, there are several disturbing points about the way some overseas properties are marketed here:
Some agents recommend buying several properties instead of one, which encourages over-leveraging.
The selling price of a property is jacked up, with the promise of guaranteed high rental yields.
But, after a few payments, the company files for liquidation and stops payment for the "rent".
The same modus operandi is repeated.
However, there is no recourse for the buyer as this is not considered fraud in the countries where the properties are located.
In some cases, after a buyer signs on the dotted line, puts down a 10 per cent deposit and takes a loan for the remainder, the developer goes bust and the project is left in limbo.
However, the buyer is still liable for the loan, even if the project had failed.
Some agents specialise in buying such loans from banks at distressed prices and pressing for the loan repayments.
The authorities should step in to regulate those from overseas who come to Singapore to market their projects.
If they are giving talks about properties, they should be deemed marketing agents, and should be subject to the same rules as other agents.
If a company wishes to market a project, they must have a bank guarantee of 30 per cent of project value until the completion of the project.
http://www.straitstimes.com/premium...te-marketing-foreign-properties-here-20121023
