ME5 - Land Banking
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ME5 - Land Banking FAQ
Why should I consider land investment?Written by StephenFriday, 07 September 2007 As part of your investment portfolio, land investment provides a perfect balance to the more speculative stocks and shares. Unlike the volatile stock market, land prices do not go up one day and down the next. Once you purchased a piece of land, it remains there until you sell it. A house or an apartment, on the other hand, falls in value because of its depreciating nature. Meanwhile, land does not depreciate but goes up in value because it is a finite resource. Or as Mark Twain said: 'Buy land, they don't make them anymore!' Last Updated Tuesday, 30 November 1999 What is undivided interest?Written by StephenFriday, 07 September 2007 Undivided interest means you own a part of the whole. For example, if the size of a parcel of land is 160 acres, Walton may sell undivided interests of the land, equivalent to half acre per unit. You would then own 1/320 undivided interest of the whole parcel. Last Updated Tuesday, 30 November 1999 Why is land so affordable?Written by StephenFriday, 07 September 2007 The price of land is very reasonable because you are buying into an undivided interest of a large parcel of land. Additionally, the Company buys large parcels of property (bulk purchases); therefore the company is able to pass those savings to you. Last Updated Tuesday, 30 November 1999 Are there any hidden costs for the investors?Written by StephenFriday, 07 September 2007 No. The investors' investment is net. All other charges such as concept planning fees, legal fees, admin, etc. are all included in the sale price. There are no yearly management fees or any other costs. Last Updated Tuesday, 30 November 1999 With all these uncertainties, is this a good time to invest?Written by StephenFriday, 07 September 2007 Unlike stocks and shares, land investment does not fluctuate greatly in price. In fact, it increases steadily in the years to come. With development, land that is in a good location increases in value tremendously, over time. This means that yesterday would have been a better time to invest. Since we can't turn back time, then the earlier you invest, the better would be the potential returns. Last Updated Tuesday, 30 November 1999 Is the investment secure?Written by StephenFriday, 07 September 2007 Yes, your investment is secure. You receive a certificate of title in your name from the Alberta/Toronto Land Titles Office - a government agency. The land title can be easily verified through registries located there. If something were to happen to the Company, you would still have your investment, as you are registered on title as owner. Last Updated Tuesday, 30 November 1999 Is the property leasehold or freehold?Written by StephenFriday, 07 September 2007 All properties are freehold property. Last Updated Tuesday, 30 November 1999 If I buy an acre interest, can I build my house on it?Written by StephenFriday, 07 September 2007 No, because it is not subdivided. The primary objective for this investment is a medium investment for future sales or development. Profits are divided among the investors, according to their proportion of interest. Last Updated Tuesday, 30 November 1999 Can I sell my undivided interest?Written by StephenFriday, 07 September 2007 Yes. Since you have a title to your undivided interest, you can sell to anyone, at anytime. Last Updated Tuesday, 30 November 1999 Who pays for future property taxes?Written by StephenFriday, 07 September 2007 The Company will lease out the land until it is ready for sale or development. The rent collected will be used to pay for the property taxes. The investors do not need to pay for any property taxes. Last Updated Tuesday, 30 November 1999 If the offer to purchase is received on the whole parcel, who makes the decision to sell or not to sell?Written by StephenFriday, 07 September 2007 Upon receipt of an offer, the Company notifies all investors. If at least 60% of all owners accept or do not accept - the offer; it is binding on 100% of the investors. This is in place so no one can hold up the development or sale of the property. Last Updated Tuesday, 30 November 1999 If investing in land were so profitable, why would the Company sell the land to individuals?Written by StephenFriday, 07 September 2007 Leveraging in business is a common practice. While many others choose to leverage using conventional avenues, (borrowing from banks etc) Walton has instituted this business strategy of providing an investment opportunity to individuals as a means of attaining leverage. This win-win situation has been applauded by many investors world-wide. 57% of their investors are Canadians, 22% are from Hong Kong, and 16% are from Singapore with the remaining 5% coming from Japan and the rest of the world. It is time to let the company help you make your money work harder for you through their land-banking program. Last Updated Tuesday, 30 November 1999 |
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