Land Investment Scams – Are they true?

One of the most recent so-called investments to have surfaced in Malaysia recently involved lands. It has been regarded to be quite a lucrative investment option while some have called it a scam as it seemed to have a pyramid like structure to it. In fact, a recent report claimed that 3 companies were raided by the SSM (Companies Commission of Malaysia) over illegal land investment scheme suspicion.

The 3 companies which were involved include UK Land International, Edgeworth Properties and the highly popular and advertised Profitable Plots. These companies offered to sell plots of lands in countries like England and Canada and promised high return rates in the future.

Invest in what you cant see? You gotta be kidding me..

It all seemed to be very rosy very attractive but since the report came out, the companies have stopped their marketing but the damage would have already been done after so many Malaysians invested in their schemes.

Since then, other new land investment companies have surfaced and a recent scheme involved calling for ‘investors’ in a pyramid MLM type of system. Again, it might be attractive and sound very interesting but one might should not be overly excited as anything that has to do with the MLM system would be risky in any way.

The land banking scheme is not anything new where one is actually purchasing raw land and hold it for a while until the plot ‘matures’ and then you will be able to reap the profits. As this investment is in the property and real estate environment, it becomes more attractive as compared to stock market and unit trusts.

Land investment is always the best

Property and real estate investments are one of the best form of investments one can enter into but when you combine it with the risk and volatility of an MLM program, and the fact that it has to wait to ‘mature’ or when the land becomes ‘usable’ (which might not happen), the risk become exponentially expounded and one might be investing into a scam while thinking that you are actually investing in real estate, which in actual fact, you are not.

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