Economic News

[Xisiqomelir]

http://www.news.com.au/finance/real...y/news-story/1c1ccd51cf863393eb24fe45542ed269

The Chinese prefer US, Canada and OZ and know value when they see it, cementing my decision to buy in Melbourne, most livable place to live 5 years in a row.

Now, although this is getting ever more tangentially (at best) related to the Economic News of living in Johor, I find the topic very interesting and will contribute to the derailment a little.

If we're talking about real International-with-a-capital-I grade residential buys, I would probably pick Manhattan (the borough, not the poster) over Melbourne.

By way of comparison, here's a 2br near Fitzroy:

http://www.realestate.com.au/property-apartment-vic-melbourne-121087270

1.626M AUD is ~ 1.7 M SinkieD according to xe.com

Here's a 2BR in the MPD:

http://streeteasy.com/building/345meatpacking-condominium#tab_building_detail=2

The 2/2's sold out at launch for ~ $2M = 2.69 Sinkie$ and some moved last year for three. Understandable, given that it's probably our modern Babylon, and also comes with objectively better public transport, local amenities, as well as a relatively better view than the AU option.

Over and above both of those, if I had serious money I'd be getting something in London, though. That city is going to be too expensive for single-digit millionaires soon.

 

[Tekkun]

Think of it this way, if rent out HDB and can rent Johor property at less than what you pay for installments wouldn't you have more disposable cash to spend? So this is more financially sound if just talking dollars and cents.

And that is my strategy, by forgoing buying in Johor this strategy is leaving me with money to invest elsewhere like OZ, or for down to earth people, more disposable money in the pockets

OZ properties is 3x more expensive than JB. So forgoing buying in JB to save peanuts in RM to buy into Oz in AUD is just not possible unless you have plenty reserves in the bank.

 

[Tekkun]

Now, although this is getting ever more tangentially (at best) related to the Economic News of living in Johor, I find the topic very interesting and will contribute to the derailment a little.

Over and above both of those, if I had serious money I'd be getting something in London, though. That city is going to be too expensive for single-digit millionaires soon.

There are still some good places to pick up especially where the Crossrail is located. Places like Slough or Reading is good. Luton is not too bad as well. Easily 30% cheaper than PCL.

 

[Frodo]

OZ properties is 3x more expensive than JB. So forgoing buying in JB to save peanuts in RM to buy into Oz in AUD is just not possible unless you have plenty reserves in the bank.

But why would investors want to rent and stay in JB in order to invest in Australia or London or elsewhere?

 

[xebay11]

But why would investors want to rent and stay in JB in order to invest in Australia or London or elsewhere?

OK here is the strategy, live in Johor keep costs low, keep Singapore property to generate rental returns and invest in OZ for the future, IE. My daughter who has lived there for two years and doesn't want to return, I see OZ as a secondary retirement home.

 

[xebay11]

OZ properties is 3x more expensive than JB. So forgoing buying in JB to save peanuts in RM to buy into Oz in AUD is just not possible unless you have plenty reserves in the bank.

If I forgo Johor I am talking about not having to pay about $300k SGD which goes someway to an OZ $1m home.

 

[Tekkun]

If I forgo Johor I am talking about not having to pay about $300k SGD which goes someway to an OZ $1m home.

S$300k can get you a JB terrace house, in Oz you get only a 1 room apartment in Melb for the same amount which is about 600 sq ft.

 

[Manhattan]

OK here is the strategy, live in Johor keep costs low, keep Singapore property to generate rental returns and invest in OZ for the future, IE. My daughter who has lived there for two years and doesn't want to return, I see OZ as a secondary retirement home.

I have a similar approach, just that I buy in Johor instead. Eventually when I retire in a few years, I will have 5 taps to draw from, 3 rental properties, cpf and cash. The taps should provide about sgd 6k per months perpetually, so my wife and me can live anywhere in the world we fancy and enjoy life till health cannot make it or we don't like new places anymore, then go to Johor condo to actually retire and wait for our time to come. Not sure if it will work out but at least we try.

 

[Manhattan]

S$300k can get you a JB terrace house, in Oz you get only a 1 room apartment in Melb for the same amount which is about 600 sq ft.

If want landed property, sgd400k can get a 4 bedroom house on freehold 400meter square landed in melbourne. Not in central but 30 mins train ride to Southern cross station. Yes, 400 meter square, Size of a basketball court, double the land size of a terrace house in jb. May seem too big, but it's a standard size in oz.

 

[kawan2sgmy]

Likewise, I sold JB property and bought an investment property in Sg just to lock in the money to beat inflation. Loan is paid by my son's cpf and I get to keep the rental.
I have tried to invest in M'sia but the outcome is no good. So 'kwa puah' pull back whatever residual money to invest in own homeland.
Just thinking, if M'sia can be good, Sg will be better!
But M'sia has its potentials too but children all not interested. My children are all living in Sg. might as well put it in SGD. Less hassle next time...

If I forgo Johor I am talking about not having to pay about $300k SGD which goes someway to an OZ $1m home.

 

[Frodo]

If want landed property, sgd400k can get a 4 bedroom house on freehold 400meter square landed in melbourne. Not in central but 30 mins train ride to Southern cross station. Yes, 400 meter square, Size of a basketball court, double the land size of a terrace house in jb. May seem too big, but it's a standard size in oz.

But Australia food not cheap leh...and not much night life like Singapore. :p

 

[xebay11]

S$300k can get you a JB terrace house, in Oz you get only a 1 room apartment in Melb for the same amount which is about 600 sq ft.

Ha ha I am actually interested in the $2m property in JB someone mentioned here that is equivalent to a Singapore GCB, sounds interesting but won't be in my plans yet for at least 10 years

 

[Tekkun]

I have a similar approach, just that I buy in Johor instead. Eventually when I retire in a few years, I will have 5 taps to draw from, 3 rental properties, cpf and cash. The taps should provide about sgd 6k per months perpetually, so my wife and me can live anywhere in the world we fancy and enjoy life till health cannot make it or we don't like new places anymore, then go to Johor condo to actually retire and wait for our time to come. Not sure if it will work out but at least we try.

Sounds very good. Condos are good to retire as it is hassle free. Just close the door and you can travel. No need to tend the lawn or clear the drains. On thing though, you need to be aware about rental properties. After every change in tenancies, you need personal time and money to refurbish. It is ok when you are still able to, it is not easy when you are old.

I actually had begun activating my pre retiring plans. Bougth a 3 room condo lately in Subang Jaya, next to a shopping complex and 5 mins walk to the MRT station and medical center. Don't want to buy when I am too old where bank loans are not available. When I am old, driving is a hassle. PH might also be my optional retirement home too. Kids will get married and move out, so need smaller space.

 

[Tekkun]

But Australia food not cheap leh...and not much night life like Singapore. :p

Retirement is all about stretching your money to the max. Medical is expensive too. And investing in Oz, the foreign investment rules also have to consider. But they don't have RM1m rule. Also their banks always change rules like reducing the loan amount without notice. So many people got caught these days by this policy change.

 

[Tekkun]

If want landed property, sgd400k can get a 4 bedroom house on freehold 400meter square landed in melbourne. Not in central but 30 mins train ride to Southern cross station. Yes, 400 meter square, Size of a basketball court, double the land size of a terrace house in jb. May seem too big, but it's a standard size in oz.

Wait till you pay the heating bills in winter...LOL

 

[Manhattan]

Sounds very good. Condos are good to retire as it is hassle free. Just close the door and you can travel. No need to tend the lawn or clear the drains. On thing though, you need to be aware about rental properties. After every change in tenancies, you need personal time and money to refurbish. It is ok when you are still able to, it is not easy when you are old.

I actually had begun activating my pre retiring plans. Bougth a 3 room condo lately in Subang Jaya, next to a shopping complex and 5 mins walk to the MRT station and medical center. Don't want to buy when I am too old where bank loans are not available. When I am old, driving is a hassle. PH might also be my optional retirement home too. Kids will get married and move out, so need smaller space.

Right, I noted the part on the hassle to manage the property too. Did some checks and found out that you can actually pay people to do all that. In oz, that's about 8% of the rental, they will arrange viewing, short list the tenants, do some minor works, etc. you just need to sign off and collect the final rental in bank account. Of course, need to find a reliable agency. I believe it's possible in Johor too, got demand will have supply. I have not activated yet, just placing the pawns here and there. Hope to activate before 55, too old no point already. The best return now is still cpf, 4-5 % compound interest haha..

 

[Manhattan]

But Australia food not cheap leh...and not much night life like Singapore. :p

Australia has very affordable fresh produce, very economical and healthy if you cook yourself. That's what most Aussies do too.

 

[snowbird]

August 2016 – Imagine the wonderful moment when you’re newly married and the next moment, when you realized that you had overpaid by $2 million dollars for a property worth only $658,000. This was what happened to Adeline Tay, a 28 years old Singaporean working as a Senior Manager in Singtel.

Adeline claims that she is a first time homebuyer and has little time to do her research. Instead, she relies on her property agent to help her get her dream home. Unfortunately, the trusted property agent turns out to be the secret owner of the overpriced property that was being offloaded to her. Adeline is now thinking of pursuing legal actions to reverse the property purchase, which was completed end of last year.

Adeline only realize her mistake when she checked her new property’s valuation price using CrowdReport at CrowdTwo.com hoping that the valuation has increased, only to discover she had overpaid for her home by more than 3 times.

Her calls to the property agent went unanswered and shortly after, the mobile number was no longer in service. Adeline added that when she visits the property agent’s office, the people there inform her that this person has quit the industry and has gone overseas.

“Even my relationship with my husband was badly strained and we hardly talk nowadays. We are considering a divorce.”, Adeline added, “If only I had done my homework and find out the price of the property before making the purchase, I wouldn’t have been in this situation. Perhaps if I have never heard of CrowdTwo.com and remain ignorant, life would have been much more blissful for me.”

True or not ?

This Adeline Tay must be the stupidest woman in the whole wide world if this story is true.
Even an uneducated auntie would know something about current property price and paying 3 times higher, Adeline takes the crown for dumbness.
Singtel should sack her immediately for her stupidity if not one day, as a senior manager, she may do serious damage to the company for being so dumb.
So she quietly went to buy a property without informing her dear husband, otherwise how could they be having strained relationship if hubby actually agreed too?
Too many flaws in this dumb fiction to be true.

 

[Tekkun]

Right, I noted the part on the hassle to manage the property too. Did some checks and found out that you can actually pay people to do all that. In oz, that's about 8% of the rental, they will arrange viewing, short list the tenants, do some minor works, etc. you just need to sign off and collect the final rental in bank account. Of course, need to find a reliable agency. I believe it's possible in Johor too, got demand will have supply. I have not activated yet, just placing the pawns here and there. Hope to activate before 55, too old no point already. The best return now is still cpf, 4-5 % compound interest haha..

Be careful of property laws, capital gains, inheritance tax in different countries.

 

[xebay11]

Right, I noted the part on the hassle to manage the property too. Did some checks and found out that you can actually pay people to do all that. In oz, that's about 8% of the rental, they will arrange viewing, short list the tenants, do some minor works, etc. you just need to sign off and collect the final rental in bank account. Of course, need to find a reliable agency. I believe it's possible in Johor too, got demand will have supply. I have not activated yet, just placing the pawns here and there. Hope to activate before 55, too old no point already. The best return now is still cpf, 4-5 % compound interest haha..

Yep there are professional property managers in Oz, we used them last time in the early 2000s.