IN VIEW of the recent fiasco over failed investments in structured products, I would like to highlight the potential risks in investing in foreign properties that claim to guarantee net rental of a certain percentage as well as easy financing in Singapore.
The rental guarantee, as sold by the marketers, is not a guarantee per se. It is applicable only if one is prepared to enforce the rental guarantee by taking legal action against the foreign developers. The marketers may claim no responsibility.
In addition, due to banks' stringent credit controls as well as the recent credit crunch, buyers may also end up not getting the financing to complete the settlement, and the initial 5- or 10-percent deposit paid to the foreign developers would be forfeited.
