Iskandar -- Now is the time to invest in or it's overhyped?

[malpaso]

Good money generating assets like shoplots r v high risks to small investors.

may i suggest REITs.

 

[FHBH12]

may i suggest REITs.

Maybe can. I'm not so familiar. I prefer to buy things that i can see physically there n manage myself.

 

[malpaso]

Maybe can. I'm not so familiar. I prefer to buy things that i can see physically there n manage myself.

been in from last year. not bad. like collecting rent, except no worries on collection, no need to file tax. just wait for money to come in. over time REIT managers will perform AES (upgrade) or inject new asset, they will pay you more, so price of REIT goes up too (capital appreciation). so far so good. getting 6-7% p.a. i can say i own a small piece of bedok point, paragon, causeway point, etc.
but my portoflio down by a few percentages though :(
you should check it out.

 

[graveyard]

been in from last year. not bad. like collecting rent, except no worries on collection, no need to file tax. just wait for money to come in. over time REIT managers will perform AES (upgrade) or inject new asset, they will pay you more, so price of REIT goes up too (capital appreciation). so far so good. getting 6-7% p.a. i can say i own a small piece of bedok point, paragon, causeway point, etc.
but my portoflio down by a few percentages though :(
you should check it out.

me too. much of portfolio is concentrated in REITS. no capital gain tax make it conducive to trade in SG. its also very liquid compared to ppty investment - you can literally get your $$ within 2-3days after selling. Return is definitely lower than ppty investment but that is reasonable in view of the higher risk factor and illiquidity of ppty assets. as the usual saying, it is wise to diversify - stocks + ppty that will offset and complement each other's pros and cons. You can also indirectly invest in Iskandar via stock by buying shares of companies that invest in iskandar (e.g. Rowsley has surged in price after the announcement on the key investments in Iskandar was made

 

[FHBH12]

I feel that e actual population growth in southern Johor is higher. I'm using 3% as a minimum. A lot of Singaporeans n PRs who r moving there still use Singapore address to reduce property tax in Singapore. In addition more aged people will want to go there for retirement. The higher costs in Singapore like COE n more expensive health care is just starting to kick in. Over e next few years, many will find that they have insufficient fund for retirement in Singapore. This is e wild card behind e question whether there will be serious oversupply.

 

[Frodo]

I feel that e actual population growth in southern Johor is higher. I'm using 3% as a minimum. A lot of Singaporeans n PRs who r moving there still use Singapore address to reduce property tax in Singapore. In addition more aged people will want to go there for retirement. The higher costs in Singapore like COE n more expensive health care is just starting to kick in. Over e next few years, many will find that they have insufficient fund for retirement in Singapore. This is e wild card behind e question whether there will be serious oversupply.

What do you mean by reducing property tax in Singapore using Singapore address?

 

[FHBH12]

What do you mean by reducing property tax in Singapore using Singapore address?

E.g. Leave your pte residential address in your NRIC, rent it out, pay only 4% tax, then stay in Johor and live off the rental. Otherwise pay >10% tax. Since the address is not in Johor, there is no way for the Johor government to count you in its population census even though most of the time you stay in Johor. http://www.iras.gov.sg/irasHome/page04.aspx?id=2094

 

[dare2]

I was talking to a caterer who is lamenting the increasing operating cost especially transport. A van will minimally cost 120K now, including tax, servicing, repair, petrol/parking/ERP, and interest on loan, it will be at least 2K a month.......on transport alone. So how are the hawkers going to survive unless raising their prices....inflation linked to cost of transportation is going to be a major issue. Staying in JB will also be an issue if one cannot afford a car......

 

[FHBH12]

I was talking to a caterer who is lamenting the increasing operating cost especially transport. A van will minimally cost 120K now, including tax, servicing, repair, petrol/parking/ERP, and interest on loan, it will be at least 2K a month.......on transport alone. So how are the hawkers going to survive unless raising their prices....inflation linked to cost of transportation is going to be a major issue. Staying in JB will also be an issue if one cannot afford a car......

Good to have a car anyway if you are staying in Singapore. It is a cost that cannot be avoided. Singapore's public transport system is permanently screwed. There is no way out if you value convenience and time.

 

[cow138]

I agree. The govt transport policies really needs to be adjusted because it affects everyone. Public transportation might not be able to address all scenarios. How about handicapped pple? Do they get concession COE?

Maybe they should consider to put Khaw there again to put things right. Haha.

 

[ginfreely]

E.g. Leave your pte residential address in your NRIC, rent it out, pay only 4% tax, then stay in Johor and live off the rental. Otherwise pay >10% tax. Since the address is not in Johor, there is no way for the Johor government to count you in its population census even though most of the time you stay in Johor. http://www.iras.gov.sg/irasHome/page04.aspx?id=2094

Only owner occupied properties qualify for 4% concession tax, rental properties are taxed at 10%. When file income tax for rental income, the rental property address and property tax amount details are submitted. There is risk of being spotted.

 

[malpaso]

... Return is definitely lower than ppty investment but that is reasonable in view of the higher risk factor and illiquidity of ppty assets. as the usual saying, it is wise to diversify - stocks + ppty...

those early in to REITs already make 2x for ascendas, for eg. so, i disagree. the thing about property is one is using leverage, which can be a double edged sword.
if one is to dump 500k RM in sinapore REITs vs a condo in JB, it is quite possible the REITs would outperform the condo. plus you get the steady income.

 

[malpaso]

Singapore's public transport system is permanently screwed.

well, you haven't tried MALAYSIAN public transport yet. Actually Singapore public transport is world class, or almost there. My personal opinion.

 

[FHBH12]

well, you haven't tried MALAYSIAN public transport yet. Actually Singapore public transport is world class, or almost there. My personal opinion.

It was world class in 1990s. 2000s onward it started to degrade, and that was when I decided to buy a car to get out of it. The profit that were supposed to use for maintenance and upgrade were siphoned away. Today tax payers are paying billions of SGD to restore the system back to where it should be 5-10 years ago. With population still increasing, there is no way for the system to catch up. With MRTs still running at a loss despite the cash and land injection, you will know what is coming soon. I don't think our public transport deserve the world class status now. COE is close to $100k SGD and the lower-middle income are struggling to buy a car. Malaysia public transport is poor, but the private transport is highly affordable. This alternative is the big difference.

 

[cow138]

Agree.. govt policies is squeezing both the buyers and sellers.
However I don't think that the cost of ownership of cars is going to come down much.. the govt is currently injecting a lot of cash into transport infrastructure. They will want to recoup that.

They will definitely want to push ppl to use it. I think that short of another Lehman crash, COE will remain high.

 

[Frodo]

E.g. Leave your pte residential address in your NRIC, rent it out, pay only 4% tax, then stay in Johor and live off the rental. Otherwise pay >10% tax. Since the address is not in Johor, there is no way for the Johor government to count you in its population census even though most of the time you stay in Johor. http://www.iras.gov.sg/irasHome/page04.aspx?id=2094

But I understand that if your iC does not reflect johor address you cannot buy malaysia car, is that right? If true, then it means choose car or choose savings on property tax. Mine is HDB.

 

[FHBH12]

But I understand that if your iC does not reflect johor address you cannot buy malaysia car, is that right? If true, then it means choose car or choose savings on property tax. Mine is HDB.

I tot I have a Singaporean neighbour in JB who only uses e house for weekend n bought a J plate car.

 

[Frodo]

I tot I have a Singaporean neighbour in JB who only uses e house for weekend n bought a J plate car.

I checked over the weekend with car dealer, Singaporean can buy car and can get 70% financing with Maybank but if not wrong IC must reflect Malaysian address. Can get up to 90% loan if you have Malaysian guarantor who is also working.

 

[FHBH12]

I checked over the weekend with car dealer, Singaporean can buy car and can get 70% financing with Maybank but if not wrong IC must reflect Malaysian address. Can get up to 90% loan if you have Malaysian guarantor who is also working.

Strange. My JB neighbor still has a house in SG n definitely his address is there. Let me disturb him.

 

[NSGvictim]

Six years from 2013, any comments on the following news?
http://www.todayonline.com/business/avoid-malaysian-property-especially-iskandar