Tiny Assets

[alexchia01]

hi all
i got approached by this investment.

seems they are giving 10% returns with guaranteed lease of 5 years and they will rent this out in australia. after end of lease they will purchase the lease back at the original price that you paid for if you do not wish to continue

is this a scam ? they are in the news as well. started by singaporeans.

http://www.straitstimes.com/lifesty...Rw73ys4N6uZPgsU9FXRLHE4n01_Z93k14Ij8fKayItIYM

What make them so sure they can make 10% returns guaranteed?

What make you so sure they'll be around in 5 years time?

Scammer's tactic... Make big promises in the future that they don't intent to keep, in hope to attract more ignorance victims. Use existing victims' money to pay new victims to fulfill their initial promises, with the intention to portrait success and rope in more victims. Once the money got big enough, they take your money and disappear.

 

[alexchia01]

hi all
i got approached by this investment.

seems they are giving 10% returns with guaranteed lease of 5 years and they will rent this out in australia. after end of lease they will purchase the lease back at the original price that you paid for if you do not wish to continue

is this a scam ? they are in the news as well. started by singaporeans.

http://www.straitstimes.com/lifesty...Rw73ys4N6uZPgsU9FXRLHE4n01_Z93k14Ij8fKayItIYM

So in the news, means it's not a scam?

So Singaporean cannot be scammer?

Gold Guarantee also in the news and also stared by Singaporean. Also a scam.

 

[ish1927]

the investment fund will not go to the Tiny house Im very sure , do some calculation, they claimed that a tiny house cost $80K ,
but they produce their own flat pack material in Malaysia , Im sure the cost are much lesser than $80K per house ,
A tiny house in OZ cost less than $40K if it comes as a flat pack

and they have only have 22 tiny houses being deployed in OZ

so 22 x $80000 , so where does the funds goes to?

 

[Shiny Things]

the investment fund will not go to the Tiny house Im very sure ,

Why are you digging this thread up?

Anyway, the upshot is that yes, this is absolutely a scam. There are almost no places in Australia that can give a 10% gross rental yield, much less 10% net, and they absolutely can't guarantee the buy-back price of the house.

 

[PostCountWarrior[+1]]

Why are you digging this thread up?

Anyway, the upshot is that yes, this is absolutely a scam. There are almost no places in Australia that can give a 10% gross rental yield, much less 10% net, and they absolutely can't guarantee the buy-back price of the house.

sorry for digging this. I met the founder at the invest fair.

This is what I learnt.
- Min investment is 10k, the house cost 80k. if you buy the house or 1/8 of the house, they will transfer the house deed or 1/8 to you. so technically they claim you can claim ownership of that house.
- he claims it is rented at 200 per night. To hit 10%, you need to earn 8k a year with your 80k investment, that means you need to rent at least 40 days a year to get 8k. Thats only 11% of a 365 days. He tells me he rents more days than that which is believable with the 11% figure.
- Moreover like what someone said here, the cost of the house may be less than 80k, so he may have already taken a buffer.
- At the end of 5 years, he pays you back your principal and he owns the house again, which he says he wants to use to eventually build up his hopsitality business in aus.

The way I see this he is using your capital like a quasi loan with him taking the upside if its rented out for more than 40 days a year. Eventually if he makes enough he can give you back your principal and owns all the houses for his big empire then.

The risks:
- company goes bankrupt due to change to rental rules or low rental. you still have your deed/ownership but do you really want a house in the middle of nowhere plus if you invested 10k (only 1/8) you may have to talk to the other 7 owners on what to do with it. You can say goodbye to your principal if thats the case.
- he told me if there is a natural disaster and the house gets fully destroyed, your investment will be gone too as he will not be buying that damaged house from you.

The benefits:
- if you see shark tank, some judges will loan start ups an amount of money at a high interest rate. I think 10% is fair. there is a price for everything. it depends on what interest rate you think is suitable for such an investment. These p2p lending platforms in singapore are also offering around the same rate.

I think founder was upfront, he wants the money for him to grow the airbnb business. He thinks he can make more rental than the 10% he is paying us and eventually make enough to buy back the house 5 years later and own the house outright. I dont think its a scam. as with all business, nothing is sure returns and the high returns is for the higher risks compared to normal blue chip investing.

any thoughts guys? thinking of just investing small 10k to show support for singaporean and this plan is not really the worst I seen so far. I also have small amounts in p2p lending so I like to see these small investments to write off if need be.

 

[yoongf]

The company doesnt hv to be insolvent to default on your investment. They can just ignore you. Will u launch a 50k lawsuit to recover 10k?

Ok so u repossess your asset in some rural area. The land owner will probably demand u clear the rental backlog before releasing the asset back to you and your joint investors. But then again, this asset has any resale value?

The company owners can pay themselves a wonderful compensation and then sell the NTA $2 company to a nigerian guy. My point is, there is very little protection offered.

Minimally, i would expect 2 personal guarantees for the investment. Even banks giving out 8% business loans require personal guarantees.

 

[Mecisteus]

Just buy an Australian REIT if you want an exposure there.

 

[PostCountWarrior[+1]]

The company doesnt hv to be insolvent to default on your investment. They can just ignore you. Will u launch a 50k lawsuit to recover 10k?

Ok so u repossess your asset in some rural area. The land owner will probably demand u clear the rental backlog before releasing the asset back to you and your joint investors. But then again, this asset has any resale value?

The company owners can pay themselves a wonderful compensation and then sell the NTA $2 company to a nigerian guy. My point is, there is very little protection offered.

Minimally, i would expect 2 personal guarantees for the investment. Even banks giving out 8% business loans require personal guarantees.

I think i get what u mean. the risks are high and a rate of 10% though high, is also not much higher than what the current risk profile is offereing (like p2p lending platforms). morover a 10k investment in p2p can be diversified across different companies. but this is 10k in one company alone.

 

[existential_reality]

This is like setting up a granny flat outside the main house, these in Australia typically run between 50 - 100k.

I'm not sure what cost entrails on the rural side but generally a few things like
- planning permission,
- sewage and electrical hookups
- labor cost to setup the prefab house
- cost of shipping the prefab to Australia and then to the location
- Furnishings
- Heating and or cooling
Assuming its fairly large unit and all in 80k If all in sounds about right or even cheap pending on whats involved. That said I find it odd that he didn't include in such breakdown what is included.

Then there is the land lease, not sure how it works but unless there is a large land lease from the owner for a long period that also presents a risk.

And on the rental returns, for foreigners renting out property in Australia there is a fairly high tax of about 30% on the nett income, not to mentioned electricity, sewage cost, insurance, council cost etc (some maybe be borne by the land owner) is 200 per day the nett income after all expenses?

And in the event of squatters or disputes where the tenant trashes the place (this is very common in short term leases in Australia) who will cough up the cost to repair.

I have a place in Australia professionally managed by a agency so what I'm above is some issues I faced before or am aware of. There doesn't seem to be enough information to go ahead with, if you are keen you might want to get a more detailed breakdown of the cost and the arrangements involved.

sorry for digging this. I met the founder at the invest fair.

This is what I learnt.
- Min investment is 10k, the house cost 80k. if you buy the house or 1/8 of the house, they will transfer the house deed or 1/8 to you. so technically they claim you can claim ownership of that house.
- he claims it is rented at 200 per night. To hit 10%, you need to earn 8k a year with your 80k investment, that means you need to rent at least 40 days a year to get 8k. Thats only 11% of a 365 days. He tells me he rents more days than that which is believable with the 11% figure.
- Moreover like what someone said here, the cost of the house may be less than 80k, so he may have already taken a buffer.
- At the end of 5 years, he pays you back your principal and he owns the house again, which he says he wants to use to eventually build up his hopsitality business in aus.

The way I see this he is using your capital like a quasi loan with him taking the upside if its rented out for more than 40 days a year. Eventually if he makes enough he can give you back your principal and owns all the houses for his big empire then.

The risks:
- company goes bankrupt due to change to rental rules or low rental. you still have your deed/ownership but do you really want a house in the middle of nowhere plus if you invested 10k (only 1/8) you may have to talk to the other 7 owners on what to do with it. You can say goodbye to your principal if thats the case.
- he told me if there is a natural disaster and the house gets fully destroyed, your investment will be gone too as he will not be buying that damaged house from you.

The benefits:
- if you see shark tank, some judges will loan start ups an amount of money at a high interest rate. I think 10% is fair. there is a price for everything. it depends on what interest rate you think is suitable for such an investment. These p2p lending platforms in singapore are also offering around the same rate.

I think founder was upfront, he wants the money for him to grow the airbnb business. He thinks he can make more rental than the 10% he is paying us and eventually make enough to buy back the house 5 years later and own the house outright. I dont think its a scam. as with all business, nothing is sure returns and the high returns is for the higher risks compared to normal blue chip investing.

any thoughts guys? thinking of just investing small 10k to show support for singaporean and this plan is not really the worst I seen so far. I also have small amounts in p2p lending so I like to see these small investments to write off if need be.

 

[year2013]

I recently invested 10K, lets see how it goes!
Any investors here?

 

[tangent314]

I recently invested 10K, lets see how it goes!
Any investors here?

I guess you didn't read the posts in this thread....

 

[JuniorLion]

I recently invested 10K, lets see how it goes!
Any investors here?

Nice! Let us know how much you can get back.

 

[badsector]

I recently invested 10K, lets see how it goes!
Any investors here?

pls report 5yrs later

 

[blablabacksheep]

I recently invested 10K, lets see how it goes!
Any investors here?

More than halfway liao, how is it so far?
Did effects of COVID hurt bad?

 

[Hypnotika]

I recently invested 10K, lets see how it goes!
Any investors here?

any updates?

 

[DevilPlate]

I would rather donate 10k to charity

 

[wira]

I recently invested 10K, lets see how it goes!
Any investors here?

am also curious. How is the investment in this tiny house performing so far ?

Do they also guarantee to return back your initial investment after 5 years as promised ?

 

[Hypnotika]

am also curious. How is the investment in this tiny house performing so far ?

Do they also guarantee to return back your initial investment after 5 years as promised ?

lets wait him to get online