A good counter argument to the post before

I mentioned a reply from Project senso site on the pitfalls of Walton Land Banking. Here is a counter argument to xLawyer’s view:

Since we are here to discuss and learn from each others, I'll share my own insight. 

xlawyer provided his views, which is valid for a man on street learning about land-banking for the first time.
However, to an educated investor, all the concern can be managed and are part of the risk taken by an investor.

Walton already made huge profits by selling 90% of the land they acquired to the investors. Land that’s worth only $1000 may be sold for $20000. We have no idea what is the actual value of the land.

A pair of nike cost less than US$2 to be produced in Vietnam. Yet local retailer will pay S$40-50 to buy them in bulk and consumer pay $150-200.
If you have not done any background research,...yes, you won't know the actual value of the land.  However, market research info is readily availabile, try CB Richard's website and you will know how much the land cost. Be an educated investor.

- Walton also earns from installment plans taken up by investors. I was baffled when the consultant insisted that an installment plan at 11.95% is a better option compared to lump sum investment.. Citing reasons being .. high profit goes into high tax bracket.

Don't take the loan lor.  Financial management is a personal responsibility.
There are many Singaporeans with huge credit card debt and paying 21% compunded interest, yet signing a credit card is preceive as a cool thing!
If the total payment is less than 10% your desposible cash, pay full.  Else, take the loan and pay up as soon as you have the liquidity.

- If freak happens and proposal for development doesn't get through, Walton loses that 10% while investors 90%, But refer to point 1. Walton doesn't really make any loss since they have already earned from the initial deal by selling the land to investors.

You'll need to make sure you invest in land that are already zone for development.  For those that are not, what's the growth in the region and what the projection.  You can check with the city council for their plans.
Just like in Singapore,  even Pl Ubin & tekong have initial plan for residential development and it will develop sooner or later, but will you invest ....on the other hand, land around Potong Pasir was schedule to be developed 20 yrs ago but did not happen due to you know what....will you invest now that old chiam may be too ripe....so, do you homework and don't simply listen to the company.

- Investors are exposed to exchange rate risks, as it's traded in C$, they might have ended up paying more and getting less than expected due to rates fluctuations. There is no guarantee to currency stability when time is involved, past performance is no indication for subsequent similar results.

Every heard of hedging?  Then again, if you are investing in 1-2 units, the 10-20% current exchange risk is managable.
Just like when you buy a car, you are taking on the 30-40% oil price risk to keep you car operational and of any use.  Even with that, it's value is going down everyday.

- Their theory of low risk (or no risk as claimed) but high returns is much against all investment principles. It could be no risk to Walton since they earn at the head start, but a different story for investors.

If you go by this principle, you should not buy a HDB flat because HDB earn a lot of money right from the start.  You should not also invest in any private land properties because URA made huge amount of money right from the start.  The developer also earn money by makring up 40-60%.

Low risk is relative to how else you will invest that money that you have.
Compare to stock, is it more risky?
Compare to funds, is it more risky?
Compare to US$, it it more risky?

- Investors may own the deed to the land, but it does not represent what they have paid for and will get in return. The piece of land which they paid $20000 for might just worth $1000 and that's what you get in return.

Check CB Richards website about the land value.  Don't speculate.

- Great examples quoted in their presentation based on past performance could be during the good years of Canada's real estate history, it could be blooming at the instant, but doesn’t guarantee the same for the next decade or two.

The same when you invest in anything else.  Stock, fund, sg properties....US$...
Basically 2 countries in my portfolio will continue to achieve stable growth. Australia & canada.  Why?  Small population releative to their large mineral deposit.  With China, Japan & US fight for the minerals.  You decide.

- There is also no guarantee that Walton's proposal for development will be accepted by the Canadian govt. Investors are investing in a hope that it will happen, a piece of land that’s rejected for development is worthless.

Do research on the founder of the company and the management team.  When you know them, research on their link with the Govt.   Then invest like an educated investor.

Similiarly, will you buy Capitalland's stock with the apporval for 2 IRs?  Will NCS or SCS get part of the IT contract with the recent increase govt IT budget?

- There may be a money back guarantee or the sell-back option, but will there be a penalty fee or admin charge for that? It can't be as good as 100% cash back business. And just how easy is it to get back one’s money?

Will you invest hoping to just get back your principle?  If you make an un-educated investment, a speculative investment yes, you need such guarantee.  
When you make an educated investment, sell-back option are useless papers.  They only provide such options to silly Asians investors.  It's call fake security...totally useless. if you believe it's profitable investment.
Many silly investors will resell their units when the price goes up 20-30%.  Smart investors will keep buying the resale units as the waiting timeframe are shorter.
Think about it and decide what kind of investors you wanna be.