Property News

[FHBH12]

Blessing in disguise, at least KSL delivered their project. :p
http://www.straitstimes.com/business/property/asian-investors-in-new-zealand-project-lose-legal-bid

109 Singaporeans, Malaysians stung for $33m on top of failing to recover deposits totalling $9m

Another we were told..story.

Many Singaporeans also lost money investing in plots of land in UK and Brazil. There are others such as Germany's antique buildings etc.

Properties that TOP in Singapore in recent 1-2 years are also plagued by defects but overall they are not as bad as the quality in Johor.

 

[xebay11]

Properties that TOP in Singapore in recent 1-2 years are also plagued by defects but overall they are not as bad as the quality in Johor.

And you have avenues for recourse. In a way sinkies are also scammed in JB with nice glossy brochures.

 

[Tekkun]

Many Singaporeans also lost money investing in plots of land in UK and Brazil. There are others such as Germany's antique buildings etc.
Properties that TOP in Singapore in recent 1-2 years are also plagued by defects but overall they are not as bad as the quality in Johor.

It is ironic why investment savvy people these days get into bad investments every now and then.
No need to elaborate so much, I think bad irrecoverable investments from US sub prime story to those days of Clob and now JB, well at least not a real scam. I have a investment manager from HSBC who told me to make money investing in blue chips until China Shares came crashing down some months ago. I don't even heard from her anymore.

So now you got some property which some defects (ok to Malaysians but difinitely not ok to Singaporeans) and you make so much of noise. Let me tell you guys, I have the number of defects in a single property and I bet I dare claim the "champion defect title here." From water tank burst to flooding of bridal masterbedroom to burnt connectors at incoming 3 phase switchbox, cracked walls, uplifted cracked 600 x 600 floor tiles with gaps as much as 10mm. The icing to it was the roof was on fire for 11 houses in a row when lightning struck, well that happened to my neighbour's house. 3 fire engines came. But get it sorted, life goes on. It is not as bad as it is made up to be.

By the way, my property is done by one of the largest developer (not Setia) in the country who had all sorts of ISO standards. It is the sub contractors and workers who screwed it up. No one can guarantee 100% defect free TOP, otherwise those building inspectors would be out of job. That is Malaysia...prices is cheaper but quality come with the price.

 

[xebay11]

It is ironic why investment savvy people these days get into bad investments every now and then.
No need to elaborate so much, I think bad irrecoverable investments from US sub prime story to those days of Clob and now JB, well at least not a real scam. I have a investment manager from HSBC who told me to make money investing in blue chips until China Shares came crashing down some months ago. I don't even heard from her anymore.

So now you got some property which some defects (ok to Malaysians but difinitely not ok to Singaporeans) and you make so much of noise. Let me tell you guys, I have the number of defects in a single property and I bet I dare claim the "champion defect title here." From water tank burst to flooding of bridal masterbedroom to burnt connectors at incoming 3 phase switchbox, cracked walls, uplifted cracked 600 x 600 floor tiles with gaps as much as 10mm. The icing to it was the roof was on fire for 11 houses in a row when lightning struck, well that happened to my neighbour's house. 3 fire engines came. But get it sorted, life goes on. It is not as bad as it is made up to be.

By the way, my property is done by one of the largest developer (not Setia) in the country who had all sorts of ISO standards. It is the sub contractors and workers who screwed it up. No one can guarantee 100% defect free TOP, otherwise those building inspectors would be out of job. That is Malaysia...prices is cheaper but quality come with the price.

You are way above the average sinkie investor so you can brush these things aside, I am sure to the majority here, it is their life savings gone done the drain, but dare not post here, as it is never a pleasant experience to let the world know you got scammed.

 

[Frodo]

You are way above the average sinkie investor so you can brush these things aside, I am sure to the majority here, it is their life savings gone done the drain, but dare not post here, as it is never a pleasant experience to let the world know you got scammed.

Is it your view that buying property in JB means being victim of a scam?

 

[xebay11]

Is it your view that buying property in JB means being victim of a scam?

Yep for those who were taken in by glossy brochures and yet to be fulfilled promises.

 

[Frodo]

Yep for those who were taken in by glossy brochures and yet to be fulfilled promises.

So after completion and promises fulfilled it suddenly changed to be not a scam? Strange logic you have, scam unless proven otherwise....

 

[Tekkun]

Yep for those who were taken in by glossy brochures and yet to be fulfilled promises.

Scams and defects are totally different unless you choose to classify defects as scams.

Afterall there's defects liability as laid out in the Sales & Purchase agreements and there will be a recourse. Then again if there is a recourse, does that mean it is call a scam? Typically a scam is a deliberate action to swindle a person in attempt to make quick money.
A developer go through a process that take more than 5 years, put up money to buy and develop the land, built the property and draw down your money when it is certified by a third party and through a series of lawyers, I would hardly call that a scam.

A missing faucet, defective aircon or a leaking roof is call a scam? Wow...I need to relook at the meaning.

 

[cybermad]

Scams and defects are totally different unless you choose to classify defects as scams.

Afterall there's defects liability as laid out in the Sales & Purchase agreements and there will be a recourse. Then again if there is a recourse, does that mean it is call a scam? Typically a scam is a deliberate action to swindle a person in attempt to make quick money.
A developer go through a process that take more than 5 years, put up money to buy and develop the land, built the property and draw down your money when it is certified by a third party and through a series of lawyers, I would hardly call that a scam.

A missing faucet, defective aircon or a leaking roof is call a scam? Wow...I need to relook at the meaning.

yup, its just like saying someone who is a bit late for work is deemed not to have turned up for work. Deduct one day's pay altho he willing to stay back later to compensate ?

 

[xebay11]

Scams and defects are totally different unless you choose to classify defects as scams.

Afterall there's defects liability as laid out in the Sales & Purchase agreements and there will be a recourse. Then again if there is a recourse, does that mean it is call a scam? Typically a scam is a deliberate action to swindle a person in attempt to make quick money.
A developer go through a process that take more than 5 years, put up money to buy and develop the land, built the property and draw down your money when it is certified by a third party and through a series of lawyers, I would hardly call that a scam.

A missing faucet, defective aircon or a leaking roof is call a scam? Wow...I need to relook at the meaning.

Of course, delivering a product which is defective and knowingly not rectified is not a scam? Like I sell you a car, knowingly that the brakes are not working and yet you paid good money, is that not a scam? If it is rectified during DLP then ok. But there are lots of things which cannot be rectified during DLP, like layouts and size not conforming to the sales materials.

 

[xebay11]

yup, its just like saying someone who is a bit late for work is deemed not to have turned up for work. Deduct one day's pay altho he willing to stay back later to compensate ?

Surprise surprise some companies do that. Take it or leave it.

 

[IskandarRocks]

Scam and then counter claim .......... nicely done ......

Asian investors in New Zealand project lose legal bid

109 Singaporeans, Malaysians stung for $33m on top of failing to recover deposits totalling $9m

Joyce Lim

A group of 109 mostly Singaporean and Malaysian investors who bought apartments in New Zealand lost a total of NZ$10 million (S$9.2 million) in deposits when the developer went bankrupt in the wake of the global financial crisis.

Not only did the investors fail in a legal bid to recover their deposits, they have now been stung for another NZ$36 million (S$33 million) in a counter-claim by the firm run by the receivers, to recover losses during the global financial crisis in Queenstown. In February, the High Court of New Zealand ruled that Kawarau Village Holdings was entitled to deposits and the NZ$36 million from the group of Asian investors.

This group - none New Zealanders - invested in the failed NZ$2 billion (S$1.8 billion) Kawarau Falls development in the South Island between 2006 and 2009.

Court documents said the investors bought off the plan units in Lakeside West and Kingston West, to be constructed on the shores of Lake Wakatipu, near Queenstown.

About the lawsuit


SOME CLAIMS BY INVESTORS/ PLAINTIFFS

•Kawarau Village changed Lakeside West from solely residential use to mixed use - in breach of agreements and hurting the value of the units.

•One title issued for Kingston West included offices, a cinema and ducts between floors, and was not authorised.

•Kawarau's cancellation of the agreements was a wrongful repudiation of them.

•Kawarau Village was not ready to settle at the time it served the settlement notices or at the time of cancellation.

COUNTERCLAIM BY KAWARAU VILLAGE HOLDINGS

•Damages of NZ$36million (S$33 million) in addition to the NZ$10 million deposits - the difference between the contract price and market value of the units at the time of cancellation.

HIGH COURT JUDGMENT

•Kawarau Village did not materially breach its obligations as vendor under the sales and purchase agreements.

•The investors/ plaintiffs were obliged to settle when called upon to do so in 2011.

•Kawarau Village is entitled to the deposits together with accrued interest and damages for balance of the amount represented by the difference between the market value of the units at the date of cancellation and the contract price.


The buildings were to be Stage 1 of a three-stage integrated lakeside resort development known as Kawarau Falls Station, set to become a world-class resort with 13 hotels and serviced apartment complexes.

Conceived in 2005, the buildings were part of Auckland developer Nigel McKenna's ambitious project during a buoyant period for property development there. The units were marketed for sale in Asia by Austpac Investment Consultancy.

Singaporean Alex and wife Lisa went to Austpac's Collyer Quay sales launch in 2006. Under two weeks later they opted to buy a one-bedder Kingston West serviced unit for NZ$369,000. The pair, who asked to be known by only their first names, told The Straits Times they paid NZ$70,000 in deposits by 2007.

Housewife Lisa, 48, said: "We were promised a guaranteed rental yield of 6 per cent a year after completion. And we were told that we would be able to stay in the apartment for two to three days a year."

Businessman Alex, 50, added: "We wanted to own a second property but we could not afford one here. So we looked for one overseas... we thought the worst-case scenario would be to lose our deposits."

Another Singaporean who declined to be named said he travelled to Queenstown before sinking about NZ$150,000 in deposit for a two-bedroom apartment at Lakeside View, costing over NZ$1 million. He faces about NZ$700,000 in damages, and says he has already spent $30,000 in legal fees.

In 2009, the original developer Peninsula Road was bankrupted by the global financial crisis and placed in receivership in 2010.

Some time in 2011, the group of investors were served settlement notices by the receivers for their purchases - to pay up the full amount. But none of them settled, alleging that Kawarau Village has breached the contract they had signed.

In March 2012, Kawarau Village proceeded to cancel all of the sales and purchase agreements and forfeited the deposits. The group of investors jointly sought a court order for the return of their deposits. Last March, Kawarau Village started legal proceedings against Mr David Yuen who runs Austpac over a guarantee to buy the units if buyers defaulted.

Lawyer Phil Creagh of Anderson Creagh Lai, representing over 30 investors, told The Straits Times in an e-mail that fewer than 10 of them have come to a settlement with Kawarau Village. The rest have proceeded with a joint appeal against the judgment to be heard next August.

 

[xebay11]

Scam and then counter claim .......... nicely done ......

Asian investors in New Zealand project lose legal bid

109 Singaporeans, Malaysians stung for $33m on top of failing to recover deposits totalling $9m

Joyce Lim

A group of 109 mostly Singaporean and Malaysian investors who bought apartments in New Zealand lost a total of NZ$10 million (S$9.2 million) in deposits when the developer went bankrupt in the wake of the global financial crisis.

Not only did the investors fail in a legal bid to recover their deposits, they have now been stung for another NZ$36 million (S$33 million) in a counter-claim by the firm run by the receivers, to recover losses during the global financial crisis in Queenstown. In February, the High Court of New Zealand ruled that Kawarau Village Holdings was entitled to deposits and the NZ$36 million from the group of Asian investors.

This group - none New Zealanders - invested in the failed NZ$2 billion (S$1.8 billion) Kawarau Falls development in the South Island between 2006 and 2009.

Court documents said the investors bought off the plan units in Lakeside West and Kingston West, to be constructed on the shores of Lake Wakatipu, near Queenstown.

About the lawsuit


SOME CLAIMS BY INVESTORS/ PLAINTIFFS

•Kawarau Village changed Lakeside West from solely residential use to mixed use - in breach of agreements and hurting the value of the units.

•One title issued for Kingston West included offices, a cinema and ducts between floors, and was not authorised.

•Kawarau's cancellation of the agreements was a wrongful repudiation of them.

•Kawarau Village was not ready to settle at the time it served the settlement notices or at the time of cancellation.

COUNTERCLAIM BY KAWARAU VILLAGE HOLDINGS

•Damages of NZ$36million (S$33 million) in addition to the NZ$10 million deposits - the difference between the contract price and market value of the units at the time of cancellation.

HIGH COURT JUDGMENT

•Kawarau Village did not materially breach its obligations as vendor under the sales and purchase agreements.

•The investors/ plaintiffs were obliged to settle when called upon to do so in 2011.

•Kawarau Village is entitled to the deposits together with accrued interest and damages for balance of the amount represented by the difference between the market value of the units at the date of cancellation and the contract price.


The buildings were to be Stage 1 of a three-stage integrated lakeside resort development known as Kawarau Falls Station, set to become a world-class resort with 13 hotels and serviced apartment complexes.

Conceived in 2005, the buildings were part of Auckland developer Nigel McKenna's ambitious project during a buoyant period for property development there. The units were marketed for sale in Asia by Austpac Investment Consultancy.

Singaporean Alex and wife Lisa went to Austpac's Collyer Quay sales launch in 2006. Under two weeks later they opted to buy a one-bedder Kingston West serviced unit for NZ$369,000. The pair, who asked to be known by only their first names, told The Straits Times they paid NZ$70,000 in deposits by 2007.

Housewife Lisa, 48, said: "We were promised a guaranteed rental yield of 6 per cent a year after completion. And we were told that we would be able to stay in the apartment for two to three days a year."

Businessman Alex, 50, added: "We wanted to own a second property but we could not afford one here. So we looked for one overseas... we thought the worst-case scenario would be to lose our deposits."

Another Singaporean who declined to be named said he travelled to Queenstown before sinking about NZ$150,000 in deposit for a two-bedroom apartment at Lakeside View, costing over NZ$1 million. He faces about NZ$700,000 in damages, and says he has already spent $30,000 in legal fees.

In 2009, the original developer Peninsula Road was bankrupted by the global financial crisis and placed in receivership in 2010.

Some time in 2011, the group of investors were served settlement notices by the receivers for their purchases - to pay up the full amount. But none of them settled, alleging that Kawarau Village has breached the contract they had signed.

In March 2012, Kawarau Village proceeded to cancel all of the sales and purchase agreements and forfeited the deposits. The group of investors jointly sought a court order for the return of their deposits. Last March, Kawarau Village started legal proceedings against Mr David Yuen who runs Austpac over a guarantee to buy the units if buyers defaulted.

Lawyer Phil Creagh of Anderson Creagh Lai, representing over 30 investors, told The Straits Times in an e-mail that fewer than 10 of them have come to a settlement with Kawarau Village. The rest have proceeded with a joint appeal against the judgment to be heard next August.

Singaporeans as usual, what else is new?

 

[IskandarRocks]

Singaporeans as usual, what else is new?

Of course, it is always the unsuspecting victims to be blamed.

Absolutely nothing wrong with the so called 'first world nation' and it's overly transparent foreign investor friendly laws that allowed the developer to not only scam away the deposits but also successfully and legally continue to scam the victims for more ......

 

[xebay11]

Of course, it is always the unsuspecting victims to be blamed.

Absolutely nothing wrong with the so called 'first world nation' and it's overly transparent foreign investor friendly laws that allowed the developer to not only scam away the deposits but also successfully and legally continue to scam the victims for more ......

It takes the gullibility of Singaporeans to fall for it, first. If they are savy the scams would not be successful.

 

[IskandarRocks]

It takes the gullibility of Singaporeans to fall for it, first. If they are savy the scams would not be successful.

Yes, of course. Unfortunately, they are made even more gullible by being totally misguided by cheap class property agents who get fat commissions by marketing the wrong products .........

 

[IskandarRocks]

Many of world’s most attractive markets are overvalued: UBS

Majority of the most attractive housing markets in the world are overpriced, according to Mark Haefele, global chief investment officer at UBS.

“Among the 15 international cities we analysed, only Chicago appears undervalued,” he said in a report.

Boston and New York were considered fair-valued, which leaves 12 of the 15 cities surveyed by UBS as overvalued.

Examples of two most extreme overvalued housing markets are Hong Kong and London.

Real estate prices in Hong Kong are almost 200 percent above 2003 levels despite stagnant income and rent while London saw home prices climb 40 percent since 2013 – placing the two cities at risk of a housing bubble.

“Real estate is not only illiquid but also offers poor value in many major global cities … property markets look frothy in many cities of the world,” noted Haefele.

“The results indicate an elevated risk of a significant correction in housing prices in London and Hong Kong to name just two examples.”

Meanwhile, home prices in Zurich, Hong Kong, Vancouver, Singapore, Geneva, London, Paris and Sydney are vulnerable to “sharp corrections”, added the report.

“We have recommended other destinations for money currently earning meager yields in government bonds, such as hedge funds,” shared Haefele.

“An alternative we recommend to clients looking for longer-term investments is exposure to structural trends, such as cancer therapeutics, clean air, or emerging market healthcare.”

 

[IskandarRocks]

Australia unveils new foreign investment rules

Dec 2, 2015

Australia introduced new investment rules yesterday aimed at cracking down on foreigners unlawfully owning residential properties and improving scrutiny on acquisitions of farmland from overseas, reported Reuters.

In May, the government unveiled plans to fine and even jail foreigners who violate rules allowing them to purchase new residential properties, and not existing homes.

Real estate prices have skyrocketed in recent years, especially in Melbourne and Sydney, with growing concerns that affluent foreigners, particularly those from China, have helped inflate the market.

“The government welcomes foreign investment that is not contrary to our national interest,” Treasurer Scott Morrison said. “Without foreign investment, production, employment and income would all be lower. But it is important that foreign investment is appropriately monitored to ensure that it benefits all Australians.”

The new regime will see foreigners illegally buying Australian real estate face up to three years imprisonment or fines of A$135,500 for individuals and A$675,000 for companies.

“New civil penalties supporting divestment orders and ensuring people who break the rules do not profit from their actions also come into effect,” noted Morrison.

“These include forfeiting any capital gains made on divestment of a property and fines for third parties who knowingly assist foreign investors to break the rules.

“Under these new arrangements foreign investors who fail to comply with the foreign investment rules will not be able to profit from doing so,” he added.

For the first time, fees on foreign investment applications will also be levied.
Australia also tightened scrutiny and transparency on foreign ownership of agricultural production amid concerns of valuable assets going into the hands of foreigners.

Morrison revealed that a new agricultural land foreign ownership register had been created with any attempt by a foreigner to take their cumulative farmland investment to over A$15 million (S$15.45 million) to be screened by the national regulator.

Previously, the Australian Foreign Investment Board only screened foreign investment for acquisition of agricultural land over A$252 million.

Direct interests in agribusinesses that are valued at A$55 million and above will also be sent to the Foreign Investment Review Board.

“While foreign investment in agriculture provides important economic benefits, we have acted to improve scrutiny and transparency around foreign ownership of Australia’s agricultural production,” said Morrison.

 

[xebay11]

Australia unveils new foreign investment rules

Dec 2, 2015

Australia introduced new investment rules yesterday aimed at cracking down on foreigners unlawfully owning residential properties and improving scrutiny on acquisitions of farmland from overseas, reported Reuters.

In May, the government unveiled plans to fine and even jail foreigners who violate rules allowing them to purchase new residential properties, and not existing homes.

Real estate prices have skyrocketed in recent years, especially in Melbourne and Sydney, with growing concerns that affluent foreigners, particularly those from China, have helped inflate the market.

“The government welcomes foreign investment that is not contrary to our national interest,” Treasurer Scott Morrison said. “Without foreign investment, production, employment and income would all be lower. But it is important that foreign investment is appropriately monitored to ensure that it benefits all Australians.”

The new regime will see foreigners illegally buying Australian real estate face up to three years imprisonment or fines of A$135,500 for individuals and A$675,000 for companies.

“New civil penalties supporting divestment orders and ensuring people who break the rules do not profit from their actions also come into effect,” noted Morrison.

“These include forfeiting any capital gains made on divestment of a property and fines for third parties who knowingly assist foreign investors to break the rules.

“Under these new arrangements foreign investors who fail to comply with the foreign investment rules will not be able to profit from doing so,” he added.

For the first time, fees on foreign investment applications will also be levied.
Australia also tightened scrutiny and transparency on foreign ownership of agricultural production amid concerns of valuable assets going into the hands of foreigners.

Morrison revealed that a new agricultural land foreign ownership register had been created with any attempt by a foreigner to take their cumulative farmland investment to over A$15 million (S$15.45 million) to be screened by the national regulator.

Previously, the Australian Foreign Investment Board only screened foreign investment for acquisition of agricultural land over A$252 million.

Direct interests in agribusinesses that are valued at A$55 million and above will also be sent to the Foreign Investment Review Board.

“While foreign investment in agriculture provides important economic benefits, we have acted to improve scrutiny and transparency around foreign ownership of Australia’s agricultural production,” said Morrison.

This is good news to keep the riff raffs out of the property market and out of Australia. Australia is so attractive that tight investment and migration laws are needed.

 

[xebay11]

Yes, of course. Unfortunately, they are made even more gullible by being totally misguided by cheap class property agents who get fat commissions by marketing the wrong products .........

Yah and even the best scum bag cheap class property agents would starve to death if there were no gullible people. To see them getting fatter and fatter commissions means there are many more gullible, naive people out there than these scum bags.