A reader, Gary, asked me for my opinion about something he saw in Bukit Merah Central.
"... Saw a roadshow in Bukit Merah Central which displayed "24% per annum"! Company is Islandia and I'm not so sure if really can get 24% per annum! Sounds like scam but the strange thing is that there are people manning the booths!"
So, with some help from my friends, Victor Chng and Matthew Seah, I discovered that Islandia is actually a proposed integrated resort to be developed on an Indonesian island called Pulau Abang Besar. Apparently, construction work started in the middle of last year.
See PDF file:
This project is a joint venture by Cuffz Holdings and Huafa Assets.
Digging around a bit more, we found that Cuffz Holdings is actually partnered with IOC Group Limited.
IOC Group Limited is listed on the MAS Investor Alert list: http://www.mas.gov.sg/IAL.aspx?sc_p=I
Scroll down the list and you will see it.
What is the MAS Investor Alert list about?
"The Investor Alert List provides a listing of unregulated persons who, based on information received by MAS, may have been wrongly perceived as being licensed or authorised by MAS."
If I were approached by anyone promising me a return of 24% per annum by investing in a piece of real estate, I would be very wary.
If I were approached by anyone promising me a return of 24% per annum by investing in a piece of real estate that is under construction, what should I do?
Invest $10,000 and get 24% yield in 24 months.