THE dramatic rise in land prices in recent years, makes for a good argument to invest in real estate, land company Profitable Plots Co said.
But investors who purchased land overseas should not expect overnight rewards as land banking investments can take up to 10 years before showing returns, according to Group Operations Director Andy Nordmann.
Profitable Plots offers clients strategic real estate investment opportunities. The company began its operations in Brunei Darussalam about a year ago.
Nordmann said Profitable Plots, which he said is a "land company, not a UK land company", would typically tell clients to wait seven to 10 years to see returns on their investments. "We would say go ahead with the investment, but we don't want people to think it's going to happen in the next six months. It's not a short-term investment," he said in a phone interview with The Brunei Times from his Singapore office.
When clients ask when they can expect returns from their investments, he said, " There's no fixed date, but they have reasonable expectations."
The firm acquires land in the United Kingdom because "that is where the best returns has been", he said.
"We got clients the best window of opportunity in the UK."
The price of a plot of land in the UK depends on the investor, but he said some people pay about £5,000, which translates to "about $16,000, nearly $17,000", he said. "It's not a big amount compared to buying a house. We're quite proud that it's available for the masses," said Nordmann.
The size of land would be about 120 acres (48.56 hectares), he added.
He said the company sees more developments in Asia, namely, Malaysia, Thailand, Australia and India.
The range of products would expand quite substantially, Nordmann said. "I think people are looking for good returns at low risks."
Touching on the Brunei market, he said, "Customers wants good service, we deliver the expectations of clients and getting them their returns. That's what we're all about."
Profitable Plots, he said, does thorough research before selecting land. "If there's no housing development in the next 10 years, then what's the point in buying the land?"
The company has offices in Brunei, Canada, Malaysia and Singapore.
The Brunei Times
Monday, October 22, 2007
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