Thursday, February 23, 2012

Mind Your Land Banking Investment

It is reported in today's news that Edgeworth Properties, a Canadian land banking company, has filed for bankruptcy protection.

Edgeworth came to the InvestFair at Suntec around 2009/10, and they were marketing their land banking investment to Singapore investors at that time.  Each plot of land went for around US$10,000.  Their land is in the province of Alberta, a province thriving with activities of oil sands.  I was quite tempted to make that investment at the time, but then based on the principle that don't put all your eggs in the same basket, and considering I already have one land banking investment and still yet to see any good outcome, I decided not to.

Looking back, it was really lucky that I didn't make that investment, otherwise, my money might be gone by now.

The moral of the story is that:  If you want to invest in something, make sure you have some good knowledge about what you are investing, and must know the company that you are dealing with.  Well, you can never be 100% sure, but then at least it will help you minimize your potential loss.

Happy investing! 

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