04/02/2026
I was curious about a property investment that someone shared that would yield high returns. So I met up with the sales agent to find out more. As a financial consultant, I'm fully aware that higher yields/returns come with higher risk.
As Singaporeans, our love for property is practically written into our DNA. We live on a tiny, land-scarce island where "buying dirt" has historically been a one-way ticket to wealth. This has conditioned many of us to believe that property is the ultimate "cannot lose" investment.
But when we take that Singaporean mindset and apply it to overseas property or land banking, we run into a dangerous trap.
The "Title Deed" Myth
A justification given when asked about the worst outcome:
"The worst-case scenario is that you end up with a land title deed, isn’t that a good thing? Every Singaporean wants to own property!"
On the surface, it sounds logical. You think, “At least I own the physical land; it can't disappear like a bankrupt company's stock.” But here's a reality check - A land title deed is only an asset if someone else wants to buy the land from you...
The Reality of Illiquidity
In Singapore, land is a limited resource. In many other parts of the world—whether it’s a remote plot in a developing nation or a "newly developed" township in a massive country—land is often abundant. If you buy land in a place where supply is endless and demand is stagnant, you aren't holding a "safe" asset. You are holding an illiquid liability. Here is what the "worst-case scenario" actually looks like:
- Zero Liquidity: You want to sell to fund your retirement, but there are no buyers. You are stuck with the "dirt" indefinitely.
- Ongoing Costs: You may still have to pay property taxes, maintenance fees, or even legal fees to defend your title, all while the land sits empty.
- The Opportunity Cost: Your capital is trapped in a non-performing asset while other markets (like Gold or Global Equity) are growing.
Scarcity vs. Utility
The reason property works in Singapore is scarcity plus utility—people actually need to live and work here. Elsewhere, you might just be buying a piece of paper that gives you rights to a field that nobody needs.
Before you "collect" another title deed, ask yourself - If I needed to turn this into cash tomorrow, who is the buyer? If you can't answer that clearly, you aren't investing; you're speculating on hope.
