Iskandar Residences @ Medini

[Tekkun]

All I can say to you is that if you knew, just like I did, that it would be a totally different ball game in Malaysia when it comes to buying properties, before you bought, you probably would not have "invested" in Johor.

I guess you only just found out after you bought.

I did not buy to invest. I bought Puteri Harbour to be closer to my Singapore siblings. Never thought of how much I would lose or make even at this moment.

 

[kawan2sgmy]

sidetrack a bit since everybody talking about property investing...

Different folks different strokes!

Recently bought an almost 40yr old condo @850psf under son’s name.
I ask myself: I must be crazy to be buying at this time at such a crazy price! Could possibly wait out another 2 yrs or so.
But the price has come down some 20% from its peak.
It also comes with tenancy and it’s well renovated.
I don’t like to serve tenants for too long, so I am hoping for an enbloc.
To me, the estate looks like it’s ripe for such an exercise.
I also have other concerns about our govt’s Land Acquisition Act, if acquired, it’s habis.
I also believe in our govt who has set a target population of 7mil or over.
The market may tank further, but I still plunge into it!
I know I am taking a calculated risk… but I think it’s a value buy at this moment, at least to me.
But then again, no one can be absolutely certain about the future.
If there is any unforeseen tsunami, all will be kenna knock out.
Then there goes my money, and into the drain! Sob! Sob! Skarly another dumbful in the making! Hahaha!

Keep yr comments coming, I am all ears! Or rather just shoot! So that others can learn! I have already committed, so any good advice also can't save me.

 

[xebay11]

sidetrack a bit since everybody talking about property investing...

Different folks different strokes!

Recently bought an almost 40yr old condo @850psf under son’s name.
I ask myself: I must be crazy to be buying at this time at such a crazy price! Could possibly wait out another 2 yrs or so.
But the price has come down some 20% from its peak.
It also comes with tenancy and it’s well renovated.
I don’t like to serve tenants for too long, so I am hoping for an enbloc.
To me, the estate looks like it’s ripe for such an exercise.
I also have other concerns about our govt’s Land Acquisition Act, if acquired, it’s habis.
I also believe in our govt who has set a target population of 7mil or over.
The market may tank further, but I still plunge into it!
I know I am taking a calculated risk… but I think it’s a value buy at this moment, at least to me.
But then again, no one can be absolutely certain about the future.
If there is any unforeseen tsunami, all will be kenna knock out.
Then there goes my money, and into the drain! Sob! Sob! Skarly another dumbful in the making! Hahaha!

Keep yr comments coming, I am all ears! Or rather just shoot! So that others can learn! I have already committed, so any good advice also can't save me.

A few questions, FH or LH? If enbloc potential, why owner sell? Nowadays no such thing as property looks ripe for the exercise, you must see the demand side, whether ripe or not, atm with TDSR and ABSD, market does not look ripe and if en bloc goes at low price, late buyers may make a loss.

 

[jbrts]

A few questions, FH or LH? If enbloc potential, why owner sell? Nowadays no such thing as property looks ripe for the exercise, you must see the demand side, whether ripe or not, atm with TDSR and ABSD, market does not look ripe and if en bloc goes at low price, late buyers may make a loss.

I believe it is very unlikely to get enbloc in JB, the place is huge, it makes more sense to develop vacant land.

 

[xebay11]

I believe it is very unlikely to get enbloc in JB, the place is huge, it makes more sense to develop vacant land.

I believe his comment is about Singapore, Land Acquisition Act and 7m population.

 

[sgcount]

sidetrack a bit since everybody talking about property investing...

Different folks different strokes!

Recently bought an almost 40yr old condo @850psf under son’s name.
I ask myself: I must be crazy to be buying at this time at such a crazy price! Could possibly wait out another 2 yrs or so.
But the price has come down some 20% from its peak.
It also comes with tenancy and it’s well renovated.

You are taking some risk there. Did you take a bank loan in your son's name? If rental can cover the loan, then let it run. But like Johor, there is an oversupply coming up, though not as serious as Johor. So I think prices may remain stagnant for some time.

In worst case, say tenant leaves, can your son take over the condo for his own occupancy? As long as there is resale prospect, your only main concern is the price next time. But for Johor, reselling itself is a problem, and for the newer condos, it may be difficult to even find rental, which can't cover the monthly loan payment.

 

[sgcount]

All I can say to you is that if you knew, just like I did, that it would be a totally different ball game in Malaysia when it comes to buying properties, before you bought, you probably would not have "invested" in Johor.

I guess you only just found out after you bought.

Yes. It's only after I bought that along the way, I dug up many "Oh No!" or "Really?!" information and facts.

I just share some below, for the benefits of those who are thinking of buying or who have bought and need to make quick decisions now on what to do.

These are facts that I gathered in the last 1 year. Not meant as a bashing session but for information only.

1. Johor properties don't work the same way at all like SG. Transaction prices, valuation, etc are not so clear cut and transparent.

2. Past transactions mean little. It does not mean you can get the same price for your property or can even sell it.

3. The recently released condos are priced out of reach for the common Malaysians. So if you buy them as a foreigner, your market pool is just limited to people like you. (But see Point 6 below.)

4. "Leveraging" on banks is commonly heard when buying Singapore properties. In Johor, the interest rate further erodes your cash reserves. Leveraging does not work.

5. Rental in Johor is very cheap. So cheap that it is unlikely to cover your monthly loan repayment (especially for properties bought in the last few years).

6. Johor condos (not sure about landed) are difficult to sell on the resale market. To be honest, so far I have heard of none. Buyers prefer to buy new. Which means you have little or difficult exit option next time if you own one.

7. Buy condos only if you strongly intend to stay there or keep it.

8. If you're a foreigner, be mindful of the many laws that could make it difficult for you to exit the market. Several Singaporean owners are already "feeling stuck" with their Johor properties that they now cannot sell.

9. Currency exchange can further reduce your property value (as a foreigner).

10. Malaysians don't like leasehold properties.

Those who want to add on, please go ahead. Or correct me if I'm wrong on the above. Thanks.

 

[kawan2sgmy]

Yes I am referring to S'pore.
I am hopeful of an enbloc because the place is under transformation. My son is prepared to hold it until the lease goes down to zero. So if the enbloc comes say in 10 yrs time , it's a bonus. It's just a wishful thinking on our part. We are taking a gamble!

A few questions, FH or LH? If enbloc potential, why owner sell? Nowadays no such thing as property looks ripe for the exercise, you must see the demand side, whether ripe or not, atm with TDSR and ABSD, market does not look ripe and if en bloc goes at low price, late buyers may make a loss.

 

[xebay11]

Yes I am referring to S'pore.
I am hopeful of an enbloc because the place is under transformation. My son is prepared to hold it until the lease goes down to zero. So if the enbloc comes say in 10 yrs time , it's a bonus. It's just a wishful thinking on our part. We are taking a gamble!

As an investment, it is a big gamble, because from what you say, it seems to be 99yr lease and once pass 40 years, hard to get bank loan and also CPF to finance, you may have to live it out.

BTW which area is this? AFAIK only Geylang may have potential for any major transformation.

 

[xebay11]

Yes. It's only after I bought that along the way, I dug up many "Oh No!" or "Really?!" information and facts.

I just share some below, for the benefits of those who are thinking of buying or who have bought and need to make quick decisions now on what to do.

These are facts that I gathered in the last 1 year. Not meant as a bashing session but for information only.

1. Johor properties don't work the same way at all like SG. Transaction prices, valuation, etc are not so clear cut and transparent.

2. Past transactions mean little. It does not mean you can get the same price for your property or can even sell it.

3. The recently released condos are priced out of reach for the common Malaysians. So if you buy them as a foreigner, your market pool is just limited to people like you. (But see Point 6 below.)


4. "Leveraging" on banks is commonly heard when buying Singapore properties. In Johor, the interest rate further erodes your cash reserves. Leveraging does not work.

5. Rental in Johor is very cheap. So cheap that it is unlikely to cover your monthly loan repayment (especially for properties bought in the last few years).

6. Johor condos (not sure about landed) are difficult to sell on the resale market. To be honest, so far I have heard of none. Buyers prefer to buy new. Which means you have little or difficult exit option next time if you own one.

7. Buy condos only if you strongly intend to stay there or keep it.

8. If you're a foreigner, be mindful of the many laws that could make it difficult for you to exit the market. Several Singaporean owners are already "feeling stuck" with their Johor properties that they now cannot sell.

9. Currency exchange can further reduce your property value (as a foreigner).

10. Malaysians don't like leasehold properties.

Those who want to add on, please go ahead. Or correct me if I'm wrong on the above. Thanks.

Which what I was saying all along in various posts all over this folder. There is no leveraging if rental income is less than bank interest rates, true property investors know how to use "cheap" money to make money, emotions have no room in property investments. Throw out the "feel good I own something" feeling.

 

[mpan12]

You don't buy a Johor condo for investment. You only buy when you need a place to stay. It's in the past few years where Sinkies don't know where to put their money that they turn to Johor thinking they can invest there.

Small time buyers who went in to invest in condos like Country Garden Danga Bay and Medini will be anxious once they are completed.

 

[jbrts]

You don't buy a Johor condo for investment. You only buy when you need a place to stay. It's in the past few years where Sinkies don't know where to put their money that they turn to Johor thinking they can invest there.

Small time buyers who went in to invest in condos like Country Garden Danga Bay and Medini will be anxious once they are completed.

I agree partially. A Johor condo is sometimes not even for stay. When recession comes, many units will be empty and some owners will delay payment of maintenance fee. They do not have sinking fund like Singapore condo. Furthermore, some desperate owners will rent out to workers. Do you dare to stay?

 

[Manhattan]

Quite true. In short, only buy a really high end condo to stay if you really like it so that no dubious odd job worker will be your neighbour. The rest can forget it.
And after reviewing financial viability of the hsr, the more I believe it is not financially viable.
Only thing will change the doom state is a sudden boom in world economy and everyone live happily ever after. Not in our life time I think.
Sorry folks for being so pessimistic, reading too much sad news through the world recently. It's like we human will bring the downfall of human ourselves.

 

[FHBH12]

Quite true. In short, only buy a really high end condo to stay if you really like it so that no dubious odd job worker will be your neighbour. The rest can forget it.
And after reviewing financial viability of the hsr, the more I believe it is not financially viable.
Only thing will change the doom state is a sudden boom in world economy and everyone live happily ever after. Not in our life time I think.
Sorry folks for being so pessimistic, reading too much sad news through the world recently. It's like we human will bring the downfall of human ourselves.

China may subsidise HSR, in exchange for something more strategic in Malaysia and South China Sea.

 

[sgcount]

Quite true. In short, only buy a really high end condo to stay if you really like it so that no dubious odd job worker will be your neighbour. The rest can forget it.
And after reviewing financial viability of the hsr, the more I believe it is not financially viable.
Only thing will change the doom state is a sudden boom in world economy and everyone live happily ever after. Not in our life time I think.
Sorry folks for being so pessimistic, reading too much sad news through the world recently. It's like we human will bring the downfall of human ourselves.

You mean you have a feeling the HSR may not happen at all due to financial reasons?

I think the plan to build HSR is already in place and this month, there will be a memorandum signed by the 2 PMs of Msia and SG. The issue I feel is more of when it can be completed. I will expect delays and won't be surprised if it gets dragged till 2025 or even slightly beyond.

Tekkun mentioned several times he chose his condo in Puteri Harbour because of its exclusivity. I do agree with this point. At least for a location in Johor. It's not just for the high end feeling but also for other reasons. If it is too secluded, you can't deny safety and convenience are of concern. Also, if one buys an ordinary condo, and there are lots of them in Iskandar at the moment, it is terrible if it cannot be sold next time. At least for a high end condo, even if you can't sell it away, you have a nice place to go back to enjoy.

I can understand your pessimism. Sometimes it's good to feel that way. Pessimism actually allows us to slow down our thinking and evaluate the situation carefully. Even in SG, I find some people are still in that jubilant state and think property prices will continue to rise. If they care to think carefully, actually things are not that rosy any more. Too bad it doesn't help that all those property agents give salesmen talk to convince people to buy.

 

[Manhattan]

You mean you have a feeling the HSR may not happen at all due to financial reasons?

I think the plan to build HSR is already in place and this month, there will be a memorandum signed by the 2 PMs of Msia and SG. The issue I feel is more of when it can be completed. I will expect delays and won't be surprised if it gets dragged till 2025 or even slightly beyond.

Tekkun mentioned several times he chose his condo in Puteri Harbour because of its exclusivity. I do agree with this point. At least for a location in Johor. It's not just for the high end feeling but also for other reasons. If it is too secluded, you can't deny safety and convenience are of concern. Also, if one buys an ordinary condo, and there are lots of them in Iskandar at the moment, it is terrible if it cannot be sold next time. At least for a high end condo, even if you can't sell it away, you have a nice place to go back to enjoy.

I can understand your pessimism. Sometimes it's good to feel that way. Pessimism actually allows us to slow down our thinking and evaluate the situation carefully. Even in SG, I find some people are still in that jubilant state and think property prices will continue to rise. If they care to think carefully, actually things are not that rosy any more. Too bad it doesn't help that all those property agents give salesmen talk to convince people to buy.

It is not financially viable, but it may still go ahead anyway, just expect to be in the red for many years. To be financially viable, the trains has to run at full passenger capacity most of the time. Possible?
The whole of China with 12000 miles of railway, all losing money. Only one not in the red is beijing-shanghai as it is always full. Not everyone got deep pockets like them. Mexico and USA cancelled and Thailand shorten the length, all because they calculated and know they cannot afford it. Most may just go for normal speed trains if needed, 1/3 of the cost.

 

[sgcount]

It is not financially viable, but it may still go ahead anyway, just expect to be in the red for many years. To be financially viable, the trains has to run at full passenger capacity most of the time. Possible?
The whole of China with 12000 miles of railway, all losing money. Only one not in the red is beijing-shanghai as it is always full. Not everyone got deep pockets like them. Mexico and USA cancelled and Thailand shorten the length, all because they calculated and know they cannot afford it. Most may just go for normal speed trains if needed, 1/3 of the cost.

Hmm.. now that you mentioned it, I wonder who requires traveling from KL to SG and SG back to KL so quickly. Probably some businessmen....But they can't possibly form the main bulk of the passengers.

It seems likely China may come in again and win the HSR contract. They have the money.

If given a choice, I think what we need is an MRT that can take Singaporeans easily into Iskandar via various stops.Then more people will reside there and work in SG.

Our passport is also our entry ticket linked to our bank account for credit deduction. Every time we go through the gates in SG and Johor, we insert our passport into the slot for payment as well as for immigration. We don't need to go through the immigration officers. That will be so cool! *just a dream*

Without such convenience and an extensive MRT network, RTS or HSR will not be enough to attract Singaporeans to move over to Iskandar to stay.

 

[snowbird]

China may subsidise HSR, in exchange for something more strategic in Malaysia and South China Sea.

China is more anxious to develop the HSR than the host country, MY and SG.
It is their ambition to develop the "The Silk Road Economic Belt and the 21st-century Maritime Silk Road", also known as One Belt One Road
The Land Route will stretch westward from China thru the Middle East to Europe and the southwards from Kunming thru Indo-China to Singapore.
They had already purchase the land in Bandar KL from the 1MDB which is supposed to be the Terminal for the HSR.
They had also spent billions buying up useless power stations from the heavily indebted 1MDB.
Now, they are again throwing in a lifeline to 1MDB by buying up more assets from 1MDB. http://www.straitstimes.com/asia/east-asia/chinese-firms-dangle-lifeline-for-1mdb-src
China also injected billions in fresh funds into the stocks and bond market from last year, now MY is now so indebted to China.
What the Chinese ultimate intention and expectations, you guys think about it.

 

[Tekkun]

China is more anxious to develop the HSR than the host country, MY and SG.
It is their ambition to develop the "The Silk Road Economic Belt and the 21st-century Maritime Silk Road", also known as One Belt One Road
The Land Route will stretch westward from China thru the Middle East to Europe and the southwards from Kunming thru Indo-China to Singapore.
They had already purchase the land in Bandar KL from the 1MDB which is supposed to be the Terminal for the HSR.
They had also spent billions buying up useless power stations from the heavily indebted 1MDB.
Now, they are again throwing in a lifeline to 1MDB by buying up more assets from 1MDB. http://www.straitstimes.com/asia/east-asia/chinese-firms-dangle-lifeline-for-1mdb-src
China also injected billions in fresh funds into the stocks and bond market from last year, now MY is now so indebted to China.
What the Chinese ultimate intention and expectations, you guys think about it.

MY is indebted to China.
SG is not. Why should SG be so eager? It will just wait for the best and most favorable terms. It will take a long long time before the final connection take place, if at all it does take place.

 

[snowbird]

MY is indebted to China.
SG is not. Why should SG be so eager? It will just wait for the best and most favorable terms. It will take a long long time before the final connection take place, if at all it does take place.

BINGO!!
SG has the money and wants the line.
China needs the line and has the money.
MY needs the money.

1MDB's partner IPIC is suing 1MDB and MY's Ministry Of Finance for US$6.5 billions and MY needs all the money they can get fast.