Alternative property investment schemes, with John Lindeman – Ep. 60

For the latest episode of this bonus series of the property investing journey, Mike is joined once again by John Lindeman, CEO of Property Power Partners, and one of Australia’s leading market analysts, to talk about a number of alternative property investments and whether they should be forming part of your portfolio.

There are many alternative property investing schemes in the market place, and it can sometimes be a challenge to identify what’s legitimate and what to avoid. In this highly practical episode, Mike and John talk through three types of investments – land banking, property options and adverse possession – and outline the relative merits and risks of each.

Using relevant examples of cases that have led to large investor losses, John underscores the high level of risk that accompanies many promoted investments. John and Mike consider how developers may approach property options in particular, and consider whether there is a market for smaller investors to get involved.

John also explains what is meant by adverse possession, and breaks it down into easy to understand language. He makes the process so simple to understand, you’re sure to be looking at vacant properties in your area a little differently from now on.

Whether you’re looking to broaden your portfolio with some other more niche endeavours, or just want to expand your investing knowledge base, you can’t go past this episode.

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Mike is joined once again by John Lindeman, CEO of Property Power Partners, and one of Australia’s leading market analysts, to talk about a number of alternative property investments and whether they should be forming part of your portfolio. There are many alternative property investing schemes in the market place, and it can sometimes be a challenge to identify what’s legitimate and what to avoid.

• The promises of riches for very small buy-ins
• Land banking, property options and adverse possession
• The meaning of patient capital
• The Bendigo Hermitage Land Banking Scheme and the VKK Investment Units Trust
• Doing your due diligence on investments schemes and avoiding the pitfalls

“They weren’t actually registered to run a managed investment scheme. The rezoning never occurred, all those funds were diverted to other entities owned by the directors, the company was wound up by ASIC and the directors were taken to the Supreme Court. Everybody lost all their money” John 5:00

“There are a lot of traps with land banking. It is legal but it’s a legal way to get rich slowly as they say, small initial deposit to participate and if they are properly managed land banking schemes can eventually provide a good return but the claims may be misleading or deceptive” John 5:57

“It’s a definite opportunity if you know what you’re doing in terms of a Mum and Dad type development or renovation opportunity” John 11:50

“Under our property land right system the crown gives people land or gives people title to land on the expectation that that actually do something with it, and it’s like use it or lose it, so if you don’t do something with the property ultimately the crown will take that title back and give it to somebody who is doing something with it” John 14:35

“The onus is on the owner to reclaim the property so that they’ve actually got to come and say ‘hang on you’re living in my house’ ” John 18:52

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