Money and Me: Property Traps - The 5 Questions to Ask Before You Invest

SPEAKER_1 (0:01)

Best of Live Well with Michelle.

It's not just about money, it's about you. Money and me, where wealth meets self-awareness. Only on Money FM, 89.3.

Michelle Martin (0:19)

Good morning. There have been recent investment controversies that have left a lot wondering where they're really putting their money, despite these slick sort of ads, you know. How do you spot the warning signs? How do you distinguish the genuine opportunities from potential scams? How can you avoid buying property that looks attractive on paper, but ultimately leads you to lose a lot of money? I myself actually had a small, small encounter with something like this once upon a time. You know, I was wooed relentlessly. Lots of whiskey was poured my way, very expensive whiskey. And then Lamborghinis were paraded before me.

And the hint was, you know, if these people got these Lamborghinis because they joined our scheme, why not you, Michelle? But that's sort of my red flags because, you know, I'm always suspicious when Lamborghinis and whiskey come together on the same night. Anyway, joining is Daniel Sim, founder of Golden Goose Properties. How are you, Daniel?

Daniel Sim (1:18)

Hi, Michelle. I'm great.

Michelle Martin (1:19)

Good to have you with us. So let's start with the story that's attracted quite a bit of attention. 31st August, Straits Times, Business Times, reporting that businessmen Lim Jian Bin, also known as Takeshi Lim and Jason Fong Wai Hong, had been declared bankrupt in July and April 2026

More than 50 investors were concerned that about 5 million invested in various arrangements involving property and other businesses where their 5 million was ultimately going to end up. So when you look at a situation like this, what stands out for you in terms of investment opportunities that can sometimes be presented here in Singapore? The returns, by the way, advertised were as high as 15% annually.

Daniel Sim (2:03)

I think it's an interesting one because I think Singaporeans, first of all, like investing.

We all want to make our moneys work a bit harder because we all work so hard anyway. But I think the... And we are generally quite smart, I think Singaporeans, right? And then the challenge is, how come people still get caught in these kind of schemes? And at the start, it all looks so promising, but at the end of it, how could we perhaps have foretold? Or what were the signs that were there already at the start that would have prevented people going down that alley? So I think, specific to this one that you spoke about, I think a challenge first of all is with collective investments. So I mean, if you're putting in like 10,000, 50,000, and then everybody's pooling money, and then somebody is like leading the pack to invest in something, whatever the asset is. In this case, it was vending machines or industrial or commercial property.

And then with some promise of return, and I think interestingly what some investors in the end hold some insurance policies or liquidated some other assets to invest even further, was when they started to get some returns. Yeah, so at the start, I think these are a bit of a telltale sign. Maybe you get a bit of return at the start, and then it stops coming. But I think going one level deeper is where really is the return coming from? Is it from the investment? Let's say they collected a collective investment of, like you mentioned, 5 million or even a million. Maybe they're taking a chunk of that and then giving off as returns at the start.

Michelle Martin (3:36)

That's got Ponzi written all over it.

Daniel Sim (3:38)

Yeah, so I think that's something that I guess as discerning investors, we need to see other returns coming from the asset itself, or is it from the collective?

Michelle Martin (3:48)

And the returns, by the way, can be good for years.

Daniel Sim (3:50)

It could be.

Michelle Martin (3:51)

This, you know, 15%... I was told 15% per quarter for that particular investment scheme, which immediately got my hair raised.

Daniel Sim (4:01)

Yeah, and I think as you say, a lot of these, they sell the lifestyle, right? So whether it's business class, I think later we're going to talk a little bit about trips, holidays and food and wine and dining.

Michelle Martin (4:12)

So actually these wealth gurus they were talking about did drive Lamborghinis.

Daniel Sim (4:16)

You know what I mean?

Michelle Martin (4:18)

They flashed the signs of success. They were expensive watchers and then they promised these high returns if you put your money in property deals and other businesses. But now more than 50 investors really, really worried about it. So for an ordinary investor, how can you determine whether a promised return is commercially realistic? What do you want to know?