Living in JB 3 (Johore)

[FHBH12]

That should be about 2 years+ away or until inflation catches up in US and Europe. At the moment, the central banks in US and Europe just want to reflate their economy, indirectly inflating Asia's costs and make them less competitive in their export. So it is more or less given that prices will continue to rocket upwards in Asia.

 

[wuqi256]

That should be about 2 years+ away or until inflation catches up in US and Europe. At the moment, the central banks in US and Europe just want to reflate their economy, indirectly inflating Asia's costs and make them less competitive in their export. So it is more or less given that prices will continue to rocket upwards in Asia.

Steady, both you and Funds Transfer really have a good discussion going on there.

 

[Funds Transfer]

I want to believe you have not chosen yet but thinking about choosing Malaysia as your 2nd home? If you have, I really felt pity for you to be worrying all these past experience you had. You should have thought about it first before making this major decision. It is just like worrying if North Korea misbehaved, how? World War 3? What if another Financial crisis hits Singapore or Asia?

My humble advise for you is to Stop worrying but Start living. There are more than a billion things in the world that will be out of our control, why worry, be happy!

Wise words. The fear of Malaysia is probably misplaced but the previous scars lived on. While I admit that the path towards 1st World status like Singapore (are we really?) may take a while, their struggle for a Bersih Government and attention to environmental issues (Lynas) are moving them towards a world class social order.

It is quite easy to be distracted by the crimes that have been reported daily by our MSM here and ignore the fact that Sukuk bond issuance by Malaysia is 70% of the global market and was more than RM 100 billion in 2012. It is also the top IPO market in Asia for 2012.

 

[Funds Transfer]

yes timely reminder indeed. when all is rosy and sky is sunny, not many will notice the dark clouds that lie ahead. How to prepare for it when the music stops , esp for properties investors who are very leveraged ?

I am constantly educated by the learned investors out there and they have this to share.

Save 20% of your income.
Invest 50% of your savings.
1 year of emergency fund(which is equivalent to 12X of your monthly expenditure)
35% debt burden which means no more than that percentage of your 'take-home' pay goes toward debt repayment
And 0 credit card revolving debt!

 

[Funds Transfer]

That should be about 2 years+ away or until inflation catches up in US and Europe. At the moment, the central banks in US and Europe just want to reflate their economy, indirectly inflating Asia's costs and make them less competitive in their export. So it is more or less given that prices will continue to rocket upwards in Asia.

Bro FHBH12

You are right and agree with you 100%.

A global conspiracy is in place.

When everyone is in trouble, they change the rules.

If China and Asia do not want to reprice their currency, then US and Europe will continue to devalue theirs to seize the comparative advantage.

Manufacturing flows out of Asia like the recent news of Google glass to be produced in Silicon Valley instead.

 

[sgtsk]

Bro FHBH12

You are right and agree with you 100%.

A global conspiracy is in place.

When everyone is in trouble, they change the rules.

If China and Asia do not want to reprice their currency, then US and Europe will continue to devalue theirs to seize the comparative advantage.

Manufacturing flows out of Asia like the recent news of Google glass to be produced in Silicon Valley instead.

FT and FHBH, Good points. The US especially, devalue its currency by supplying much more cheap money to the world market. If a small percentage of this global money reaches Singapore and Malaysia markets, it is enough to inflate the financial and property markets here. What investors are often advised of the need to watch is the possibility of the reverse flow in the future(just like the boom and bust cycle of the asian currency crisis in 90's). But it seems to many the current up cycle still in forming stage, barring unforeseen circumstances of course, despite hefty price rise in some property markets. Anyway, I think it is prudent to take bets which one could afford to lose(just in case).

 

[cascadia]

EDL as at 3PM today...
https://www.facebook.com/photo.php?...57019038.64079.296957497020914&type=1&theater

 

[wuqi256]

[video=youtube_share;7HKoqNJtMTQ]http://youtu.be/7HKoqNJtMTQ[/video]

Skyfall, dedicating to all

 

[arsenal]

You should follow your rich friends to park money in Singapore and forget about buying anything in Malaysia.

Tks y sharing. My friends with S$5M-$10M assets not even thinking of M'sia property. Taiwan's property gain tax has been rised to 40-50% for those hot area n M'sia Govt might follow soon to share the profit from oversea buyers. With the 4-5% bank loan n no rental yield due to less "Ang Mo" tenants, the capital gain will be much less than SG. It is a good thing that Sg hv not apply property gain tax and good rental return.

 

[cheerguan]

Tks y sharing. My friends with S$5M-$10M assets not even thinking of M'sia property. Taiwan's property gain tax has been rised to 40-50% for those hot area n M'sia Govt might follow soon to share the profit from oversea buyers. With the 4-5% bank loan n no rental yield due to less "Ang Mo" tenants, the capital gain will be much less than SG. It is a good thing that Sg hv not apply property gain tax and good rental return.

A G&G terrace hse in Johor cost below 1 mil rm while in Sg, a terrace will cost about 6-7mil rm now. If market corrects, which will be hardest hit? Remember, salary is still stagnant for past 10yrs and many does not want to pay RM 1-2 mil for a small pigeonhole with maybe 70yrs lease left in Sg.
And many forummers here knows the rental yield is not that attractive at the moment but buy low ahead before the real demand comes in 5-10yrs, which by then, prices will already be much, much higher.

 

[Funds Transfer]

Political environment change in M'sia is unpredictable. Sg has hard time before until Abdullah as PM then Najib take over. It is still a muslim majority country and not all Umno's leaders with the open mind as Najib. God bless him be the next PM so I will exercise the few S & P awaiting if the H7N9 not arr Sg n Msia. Otherwise, Sg will be the best place for invest during new Sars. Do not forget me when y make a million for my advice...

Property prices will collapse and agree with you that by then, Singapore should be the place to invest come the arrival of the new SARs. Heaven forbid though as I would be worried for my countrymen here. It was not pleasant in 2003 for Singapore and Indonesia/Malaysia/Thailand registered no deaths and cases (Wikipedia). Strangely, these may be the places to go given their population density vis-a-vis the Republic island.

It is likely that I will try to relocate to Australia or New Zealand if it is still safe there. I don't want to be caught in the crowd of thousands when the MRT train breaks down and there's a contagion in Singapore.

We need to be brave and admit that the current overpopulation and the availability of healthcare infrastructure may not allow us to cope with the new SARs.

 

[wuqi256]

My 2 cents since you are the expert.

For investment on property:
1. Low interest rate - Definitely Singapore and who knows soon with the global economy pumping out more money, things may yet change for Malaysia.

2. High rental Yield - Singapore and parts of Malaysia especially for those who have bought early. Emphasis on early as those who bought late especially in Singapore are starting to find that they can barely cover the loan (condos) with their rental.

3. Good tenants - Very iffy for both countries but i was EXTREMELY lucky so far. One even left me water purifier, beds and wardrobe when i took over yesterday, all of them cleaned up prior to passing back to me. All paid up on time, locals, Singaporeans and foreigners.

4. Easy to dispose to both local n foreign - Yes for both but both have issues as well. Singapore has higher costs to purchase and not all properties are open to foreigners while Malaysia has longer processes and state consent especially for foreigners

5. Travel time to work without traffic jam within 15-30mins - I don't think this is something doable even in Singapore. Hard to choose the workplace as well.
In Singapore, With MRT, i can be there in about 40 minutes door to door. With driving, it takes even longer, typically 1 hour to 1.5 hours. One time being stuck in a traffic jam, it took me more than 2 hours to get to work, within Singapore.

6. Avoid over supply so no rental income - Both sides of the causeway have this issue particularly with a certain type of property that so many are advocating right now.

7. Political Environment stable - One is getting wobbly and losing orbit while the other will be tested very shortly.
Get one for 2nd home n pay full cash is fine. Buy few more n pay full n keep if hv more cash.

As an investor, get leveraged as much as one is comfortable with but always within limits within the gearing ratio.
As a home buyer, always the biggest one can reasonably afford and then maybe get something smaller for investment.

Agree but not with full cash and particularly not in a country that one is not familiar with. You can buy with
cash but have it financed by the bank first and then after the lock in period (or those with no lock in period),
pay them back.

That way, bank would have done its checks on the property, always check with at least 2 banks in case any bank
is in cahoots with the developer. When in serious doubt, don't buy, when you see that you can do it albeit calculated
risk, then buy those that are already built up.

When buying, do check to see if the developer has a checkered history.

 

[wuqi256]

In June, more than 9 developers including a huge one will be launching numerous units particularly of a certain type which i always told my close friends not to buy, we shall see how things goes then. Best wishes to everyone.

 

[RedsYNWA]

In June, more than 9 developers including a huge one will be launching numerous units particularly of a certain type which i always told my close friends not to buy, we shall see how things goes then. Best wishes to everyone.

Yes Bro Wuqi, i agree with your view. That's why I decide to stick to G&G terrace in my 2nd purchase. Couldnt PM you. Btw the industrial development is Mah Sing at I-Parc. Location & price both looks ok, but I decide not to be too over-leveraged for now.....hehe

 

[molecule]

In June, more than 9 developers including a huge one will be launching numerous units particularly of a certain type which i always told my close friends not to buy, we shall see how things goes then. Best wishes to everyone.

Thanks wuqi for your advise. Are you talking about leasehold condo units in medini ?

 

[arsenal]

Hi,

For Malaysia property related tax such as cukai pintu and cukai tanah..

Anyone can advise where I can check if I have any outstanding tax that is not paid?

Tq

 

[shctaw]

Price can still go up because developers will launch one project after another at higher price.

This strategy is use by all agency; developers worldwide.

I will not be surprise if a project hit RM2000 in 2015; but there will be 2 big problem.....

1. Who will buy from you?
2. Who do you rent to?

In June, more than 9 developers including a huge one will be launching numerous units particularly of a certain type which i always told my close friends not to buy, we shall see how things goes then. Best wishes to everyone.

 

[LeMans2011]

New Sar might coming back with H7N9. Property price drop 50% or more during last Sar. Keep yr cash flow to avoid bank size yr peoperty.... Pls comment

This is the same persona who voiced his concern whether PAS will rule Johor.

 

[wuqi256]

Yes Bro Wuqi, i agree with your view. That's why I decide to stick to G&G terrace in my 2nd purchase. Couldnt PM you. Btw the industrial development is Mah Sing at I-Parc. Location & price both looks ok, but I decide not to be too over-leveraged for now.....hehe

Great and happy for you, I am also vested somewhere, too sensitive to share here though.

 

[wuqi256]

Thanks wuqi for your advise. Are you talking about leasehold condo units in medini ?

Just in general, not referring to Medini, just certain areas will have a glut and over supply. I was invited to some meetings and it was really interesting.