Recently my friend and i had a conversation on investment and he lamented to me how he had lost his hard earned money through investing in stocks which caused him to give up investing in equities.
At the same time ,he shared with me how he got into a property investment club which invest in overseas property market and getting steady returns between 14% to 33%.
I was skeptical and told him that this type of investment is too good to be true and he agreed but he believe in taking risks.
He shared how the club roughly work;
-Investors will join the club and pool the money together.
-They will scoop up properties in countries such as; London, Germany, USA, M'sia and India.
-Due to their large/bulk purchase, they will be quoted a 30% mark down in the asking price.
-They will refurnish the properties and rent it out .
-From there, they can start getting their returns of 2%~3% per month from 6th month onwards by renting out the properties.
-The founder or CEO of the club has close connection with the top politicians in their respective countries they are investing in, hence the club creditability have been very good.
Since he is a seasoned property agent, i believe he had done his risk calculation before diving in. However,the worrying part is that he had invested almost all his saving into this investment which i advised him to get out .
The path of investing is treacherous but filled with reward and self-satisfaction. Prudence is needed as a single wrong decision can destroy our wealth that have been built up over the years.