Living in JB 2 (Johore)

[Funds Transfer]

I do see many people coming to iskandar with high hopes and excitment when they made the first purchase, some of them move back to spore or to their home country even before they got their keys as the excitment has faded.

My agents told me that there are many houses on sale in iskandae which belonged to sporeans who have decided to move back to spore due to practical reasons. Schooling going kids, for business, safety, travelling time etc. Five out of seven days a week at least, the family needs to pack up everyone and face the jams at customs to and fro. Many pple find it impractical. For me, three years earlier tuas is a heaven. At 8pm monday to friday when i return to jb, its a ghost town. No motororcar exhaust sounds. Now at 10pm its still noisy.

The jam at tuas checkpoint during mondsy to friday peak hours are getting ridiculously packed for the past 6 months. We can see a big surge in the number of veh as many more houses in bukit indah and nearby have gotten their keys. the malaysia side usually open all lanes during peak hours. The singapore side only have two clusters. They can only do this much, unless they extend the checkpoint into the sea.

The best combination will be to stay in a cheap housing in singapore and hop over to jb to stay like a king over the weekends and buy whatever cheap items u need in jb giant for jb and sg uses, or to polish or wash our previous cars.

Like investment in equities, there's a time for correction.
Looks like this what we are going through now?

But it could be an irreversible trend and everyone is aware of it.

As sure as the Great Migration that takes place annually from the Serengeti National Park in Tanzania to the greener pastures of the Maasai Mara National Reserve in Kenya during July through to October. The move to JB is no different from that.

The migration has to cross the Mara River in the Maasai Mara where crocodiles will prey on them. Perhaps no different from Singaporeans contemplation of a move to JB in the face of security challenges and concerns. But the pot of honey is across the Causeway and like the animals trying to cross the Mara River alive, it is an inevitable move to ensure survival.

 

[arsenal]

Interesting.. A lot of expats like phillipines, like the girls..like the party but I always look forward to return home at the earliest flight..

My old friend, an university graduate, went into pig farming business in philippines few years after graduation.. The challenge he faced is not the pig business, but the money he need to give to his neighbours for their support.. The money he need to entertain local officials, politicians and the police.. Every night he heard gun shots.. Communists knocking at his door want to trade his M16 for some hundreds dollars.. After 10 years, he given up.... But fortunately able to return home with a miss universe Philippino wife.. However he found Simgapore has become so expensive and whatever money that he earned from Philippines after conversion is really too little to survive...

After numerous job hunting to no avail, he realize driving taxi is the best bet... Make money in Singapore and live in Philippines is the best deal... Definitely not making money in Philippines and spend in Singapore.. Thanks god taxi driving is kept for singaporeans at the moment... Else what can he do in Simgapore?

Actually the houses there are cheaper than MY, Tagaytay weather is like Genting 10 million peso only with swimming pool... Makati mostly condos, Paranaque which is near airport also good buy, near Mall of Asia.
It's a cheap country! Beer 1 case equivalent to 2 tiger beer in Sg, 1 ream cigarettes equivalent 1 pack in Sg...

Bros here free can fly there and enjoy life. I actually dun like taking planes, I never be able to sleep in the plane. Tried buy some beers to make myself sleepy but also can't sleep . All the time sit in the plane without much movements for 3 hours plus! Those travel long distance I really must salute them!

I sold my car and houses there, so next time I dun have to fly!! I felt safer staying on land..
It's a nice place to experience but u have to endure all those traffic which is 24/7 depend on location.
If u drive have to be careful, ppl will cross the road on the highway and actually there is a zebra crossing on the highways. They also have super highways where there is no crossing at all.

From the plane when landing, u can see lots of surprises! It's a country worse than MY... Everyday there's crime. U think it's a catholic country where everyone is fine, u know what most ppl got guns! Last time those gangsters politicians with plenty of money and flame, they want someone dead and the next day in the papers the whole family kana massacre ! Got drugs addict also! Rape, rob, holdup, etc all the news never been shown here maybe u have to subscribe. It's a place full of surprises!

Lucky for me, I am a low profile person. I can understand Tagalog and speak their language. Many Chinese do biz there. If yr biz click! Then u can have many branches and can even franchise, the rent is cheap also in the mall. Pig farm can click also, but need some ulu place like province. They LOVE pork! Dun know why... Farming Is a big biz also. Have all kind of poultry as u can.... Pigs, chicken, fish, goats...etc

 

[Funds Transfer]

That is why JB is superior than HDB lor . We have cheap source of water , food and even energy , haha . At worse we plant our own sweet potatos in the garden and go out fishing at night .

Not something to sniff at.
What you said is 100% true.

 

[tutucake]

Maybe is a good move if he can sell at that price he asked , make some quick bucks and start looking again for a bigger unit somewhere ?

unlikely that his plan is to sell and buy a bigger unit as he just completed his reno like 1 mth ago with so much cash thrown in.... really interested to know his reasons behind.... will be a good reality check for many of us...

 

[Investor]

Just a rough resale guide for those who are trying to buy resale. For east ledang semis, the latest transaction is bout rm1.6m to rm1.7m. For terraces i am not sure but i heard from close associates that rm 1 million is the norm around there. Please do bear in mind that east ledang houses are bigger than hh so pls do not compare their prices.

For ledang ht and leisure farm, they dont really have much small scale sales. Most r gcbs with fantastic prices which r out of reach of ordinary investors or home owners like us so i havent checked them out

For hh gateway one can still find super cheap rm550k terraces which are very small and needs massive reno. Otherwise, the gateway terraces are about rm 650k estimated and cluster hitting rm1 million already.

For golf west semis at 50 x 100 the asking prices hovered at rm 2.2m onwards.

For golf east, the left side if u are coming from the shophouses, terraces are hitting rm800k to rm900k. Bear in mind the parking pouch is quite small. Corner terraces are asking for rm1.3 m estimated. Semis were transacted for rm1.6m already for those without golf view. Now a few owners are asking for as high as rm2m..without golf views. The designs for these semis r much more classy for sure. They r next to the main roundabout. For those golf course facing semis which havent TOP yet, i presume rm2m to rm3m will be the asking prices as they have larger size, perfect golf view and better finishing.

Over at the hills, terraces are equipped with better finishing and superior designs. Recently transacted prices are btw rm850k to rm 1 m. Bungalows askingrice is rm3.5 m estimated.

Talking about prices, below are some rental prices posted in Skyscraper's Iskandar forum;

Originally Posted by portman99
In the Nusajaya area e.g. East Ledang,Horizon Hill,etc. we are starting to see rising rental yields fueled by demand from the Education sector e.g. Newcastle medical school, Marlborough college. Terrace house rental can fetch up to RM 8,500 per month and semi-D are asking for 10k-12k. As more Uni's like Reading, Southampton and Raffles open up we shoudl see more demand. Soon the high tech manufacturing sector will also create additional demand with BioXcel coming on stream next year. There are also a rising number of Singaporeans as well as expats working in Singapore driving demand. With the right product, the demand is there.

 

[Newbie2012]

Singaporeans love properties because they are screwed by ultra low interest rate either from the bank or from CPF, and inflation caused by higher rental and transport costs. Iskandar has steadily been gathering foreign investments. The committed investments should be ready from 2012 to the next few years. As long as it is growing, it is hard for property prices there to collapse.

US, EU, China etc are in money printing mode now. As long as you don't borrow 80% for your properties and have a installment buffer for at least a year, you should be safe because corrections should not be so deep. A stable job helps a lot of course.

I must say that the low mortgage interest rates in Singapore that is fueling the property boom may be its potential nemesis. US interest rate are expected to rise in 2014 and those that are max out in their mortgage loans will be in for a hard time.

 

[jasonjst]

I must say that the low mortgage interest rates in Singapore that is fueling the property boom may be its potential nemesis. US interest rate are expected to rise in 2014 and those that are max out in their mortgage loans will be in for a hard time.

Dont worry , if interest rate up by just 1% , lot of ppl who buy pte pty in SG will kena burn more jialat . If it hit 6% to 7% like in the good old days , bedok reservior will be filled up will death bodies ! For a loan of 1m , interest alone is like 5K a month ! A basic 3 or 4 rm condo is easily above 1m plus in Singapore right ?

 

[Diaspora]

unlikely that his plan is to sell and buy a bigger unit as he just completed his reno like 1 mth ago with so much cash thrown in.... really interested to know his reasons behind.... will be a good reality check for many of us...

Yes...one would have to pay high RPGT and maybe even penalty for early settlement of the bank mortgage...

 

[Gotc69]

Hi all
My wife and me have bought an unit at The Greens,the banker told us her bank charge interest in daily basis,are there any differences between daily and monthly basis?
She told us if my wife yearly income not more than RM 120000,she is not allow to join application with me to apply for loan,is that truth??
Hope you guys could help out,hope to hear from you soon,thks

 

[sgtsk]

A couple pieces of advice are always good. First people have to make their own decisions about their investments. If they don't understand the potential rewards and risks they shouldn't do it. Investing because some smart friend is investing is not wise.

Second, for investments be able to sustain the loss. For real estate, don't buy if you can't afford to lose you job for a awhile, have the place vacant and not cover the bills. You have to have extra savings in case something bad happens (roof problems, water leak...). If you have the financial resources to maintain even while times are bad you avoid the worst consequences. A bad investment that loses some money isn't great but it isn't so horrible. An investment that forces you to sell your own house when prices fall and create huge losses that you have to cover is when you get in real trouble. If the economic crisis in Europe got worse, and China followed, and then the world economy had real problems and Iskandar real estate when down in value if you can just wait a few years you would probably get out the other side fine. But if you are forced into selling in bad times you can create huge problems for yourself.

Some people know the risks and take them. That isn't me but when they know it is their choice. The thing that bothers me is how many people take risks they don't understand and then suffer.

Often those that are rich take crazy risks. They often got lucky a couple times and now think that they made a bunch of money through their intelligence; instead of knowing it was mainly through luck. They often didn't understanding the risks and rewards at all. These are the riskiest people to listen to. There are, of course, those that understand the risks and investing and those people can provide great advice.

Getting wealthy does not make advice wise. Someone can take all their money and bet on the roulette wheel and win. And then do it again. That can make you rich. But it is foolish. many rich "investors" did very similar things and just don't know it.

Hi bro, this is a good investment decision guide. Thanks for sharing. If not too much to ask, i wonder if there is a way to describe this more precisely by a mathematical function incorporating the probability of being right or wrong, potential gain or loss, to guide one's investment decision? May be something like {(probability of being right x potential gain) - (probability of being wrong x potential loss)} greater than (net expected value) plus one's ability to withstand a loss...part of something the professional poker players seemed to use for deciding on a bet?

 

[Newbie2012]

Dont worry , if interest rate up by just 1% , lot of ppl who buy pte pty in SG will kena burn more jialat . If it hit 6% to 7% like in the good old days , bedok reservior will be filled up will death bodies ! For a loan of 1m , interest alone is like 5K a month ! A basic 3 or 4 rm condo is easily above 1m plus in Singapore right ?

If you are saying it is a lesser worry for people who invest in JB properties because the loan quantum is much smaller, I beg to differ.

The boom happening in Iskandar properties is very much dependent on the stability of Singapore properties. If monthly mortgage property payment in Singapore rises, those Singapore investors buying JB properties for weekend escapades with a bank mortgage might consider the option of selling it away to ease their financial burden as it is less likely that they will sell away their Singapore property first.

When monthly mortgage payment goes up, people who bought properties in Singapore for rental yield might also consider selling their properties. You will see a group of experienced investors who will be quick to offload their properties with the expectation that they would get a better deal later even if they can well afford to hold their properties. This group would kick off the price consolidation phase.

And when properties prices cools down, rental yield would start to comes down in Singapore and those who rent out their HDB flats and came over to rent in JB for a profit would see this profit margin diminishes and might consider moving back to their HDB flats to save the hassle of increasing jam at the immigration crossing due to current increasing number of Singaporean moving to JB to stay and commutting to Singapore to work. With less Singapore people renting out in JB, those foreign investors from the middle east, China might not view the Iskandar property investment favorably.

I have visited HH gateway recently and seen quite a no. of properties there left vacant and never rented out before. The owner/owners is/are probably holding them out for capital gain waiting on the sideline to offload it anytime when they see a change of mood in the iskandar property scene.
Why they don't want to rent them out while waiting out for their expected capital gain is material for pondering here.

They might not want to spent extra money to put in the kitchen cabinets, lightings and aircon, preferably using the cash for downpayments for buying more properties. They might also prefer not to flood the rental supply market in Iskandar so that they can artificially jack up the rental yields
and attracts more new property investors into the market. .....

When more and more people are buying Iskandar properties for investments and not for residence, the stability of the market will be shaken. The only solid reason for investing in Iskandar now is for the future completion of the MRT link to Singapore, which would provide another strong impetus for More Singaporeans to make their home in JB and commute to work in Singapore.

But what's is gonna happened from now till then is the risk factor that we need to evaluate when considering whether to buy an Iskandar property at current high prices.

 

[toyohon]

If you are saying it is a lesser worry for people who invest in JB properties because the loan quantum is much smaller, I beg to differ.

The boom happening in Iskandar properties is very much dependent on the stability of Singapore properties. If monthly mortgage property payment in Singapore rises, those Singapore investors buying JB properties for weekend escapades with a bank mortgage might consider the option of selling it away to ease their financial burden as it is less likely that they will sell away their Singapore property first.

When monthly mortgage payment goes up, people who bought properties in Singapore for rental yield might also consider selling their properties. You will see a group of experienced investors who will be quick to offload their properties with the expectation that they would get a better deal later even if they can well afford to hold their properties. This group would kick off the price consolidation phase.

And when properties prices cools down, rental yield would start to comes down in Singapore and those who rent out their HDB flats and came over to rent in JB for a profit would see this profit margin diminishes and might consider moving back to their HDB flats to save the hassle of increasing jam at the immigration crossing due to current increasing number of Singaporean moving to JB to stay and commutting to Singapore to work. With less Singapore people renting out in JB, those foreign investors from the middle east, China might not view the Iskandar property investment favorably.

I have visited HH gateway recently and seen quite a no. of properties there left vacant and never rented out before. The owner/owners is/are probably holding them out for capital gain waiting on the sideline to offload it anytime when they see a change of mood in the iskandar property scene.
Why they don't want to rent them out while waiting out for their expected capital gain is material for pondering here.

They might not want to spent extra money to put in the kitchen cabinets, lightings and aircon, preferably using the cash for downpayments for buying more properties. They might also prefer not to flood the rental supply market in Iskandar so that they can artificially jack up the rental yields
and attracts more new property investors into the market. .....

When more and more people are buying Iskandar properties for investments and not for residence, the stability of the market will be shaken. The only solid reason for investing in Iskandar now is for the future completion of the MRT link to Singapore, which would provide another strong impetus for More Singaporeans to make their home in JB and commute to work in Singapore.

But what's is gonna happened from now till then is the risk factor that we need to evaluate when considering whether to buy an Iskandar property at current high prices.

Your contribution so far does not seem like anything that of your nickname. But good points no doubt!

 

[Newbie2012]

Your contribution so far does not seem like anything that of your nickname. But good points no doubt!

I was at my least creative mood at that time of registering for this forum but I was a newbie to this forum at that time.

 

[Arowana88]

Interesting.. A lot of expats like phillipines, like the girls..like the party but I always look forward to return home at the earliest flight..

My old friend, an university graduate, went into pig farming business in philippines few years after graduation.. The challenge he faced is not the pig business, but the money he need to give to his neighbours for their support.. The money he need to entertain local officials, politicians and the police.. Every night he heard gun shots.. Communists knocking at his door want to trade his M16 for some hundreds dollars.. After 10 years, he given up.... But fortunately able to return home with a miss universe Philippino wife.. However he found Simgapore has become so expensive and whatever money that he earned from Philippines after conversion is really too little to survive...

After numerous job hunting to no avail, he realize driving taxi is the best bet... Make money in Singapore and live in Philippines is the best deal... Definitely not making money in Philippines and spend in Singapore.. Thanks god taxi driving is kept for singaporeans at the moment... Else what can he do in Simgapore?

A graduate driving a taxi? Serious Bro??

 

[kopikong99]

If you are saying it is a lesser worry for people who invest in JB properties because the loan quantum is much smaller, I beg to differ.

The boom happening in Iskandar properties is very much dependent on the stability of Singapore properties. If monthly mortgage property payment in Singapore rises, those Singapore investors buying JB properties for weekend escapades with a bank mortgage might consider the option of selling it away to ease their financial burden as it is less likely that they will sell away their Singapore property first.

When monthly mortgage payment goes up, people who bought properties in Singapore for rental yield might also consider selling their properties. You will see a group of experienced investors who will be quick to offload their properties with the expectation that they would get a better deal later even if they can well afford to hold their properties. This group would kick off the price consolidation phase.

And when properties prices cools down, rental yield would start to comes down in Singapore and those who rent out their HDB flats and came over to rent in JB for a profit would see this profit margin diminishes and might consider moving back to their HDB flats to save the hassle of increasing jam at the immigration crossing due to current increasing number of Singaporean moving to JB to stay and commutting to Singapore to work. With less Singapore people renting out in JB, those foreign investors from the middle east, China might not view the Iskandar property investment favorably.

I have visited HH gateway recently and seen quite a no. of properties there left vacant and never rented out before. The owner/owners is/are probably holding them out for capital gain waiting on the sideline to offload it anytime when they see a change of mood in the iskandar property scene.
Why they don't want to rent them out while waiting out for their expected capital gain is material for pondering here.

They might not want to spent extra money to put in the kitchen cabinets, lightings and aircon, preferably using the cash for downpayments for buying more properties. They might also prefer not to flood the rental supply market in Iskandar so that they can artificially jack up the rental yields
and attracts more new property investors into the market. .....

When more and more people are buying Iskandar properties for investments and not for residence, the stability of the market will be shaken. The only solid reason for investing in Iskandar now is for the future completion of the MRT link to Singapore, which would provide another strong impetus for More Singaporeans to make their home in JB and commute to work in Singapore.

But what's is gonna happened from now till then is the risk factor that we need to evaluate when considering whether to buy an Iskandar property at current high prices.

The current high price is due in part to the completion of many major infrastruture as well as the ever increasing cost of raw materials and labor costs.

To say that Singaporean alone buying homes in Johor is able to drive up developers' selling prices is a bit of over-estimating Singaporeans investment strength.

Some of the units in EL are bought by oversea investors and there is one such investor that spends M$250k on reno and only comes and stay occassionally. It is possible that empty units in EL and HH are owned by rich foreigners that bought as invesments because they buy in to the Iskandar Project.

With the large amount of money already spent on the infrastructure by the Fed gov, it is unlikely for prices to go back to the price level 2 to 3 years ago unless investments dries up for this project.

Now that there are more lands taken up to build factories and more companies are also setting up there to enjoy the 5 years tax holidays, so there are more demands for houses for all these new employees and workers.

And in another few years when connectivity between Iskandar and Singapore are enhanced, it is even more attractive to stay in wide open spaces and commute to tiny cramped Singapore for work. I just know of a young couple that has just committed to a SEG unit because they find it is too expensive to own a HDB that they rather stay in SEG in 3 years time and commute to Sg for work. They at least have a decent size house that they can stayed and owned rather than a HDB that is leased to us for 99 years even though we pay few hundred k for it.

Obviously we would still do our sum and not over-commit to any investment if we do not spare cash apart from the property in SG.

I know of a SIA pilot who will likely sell over his fully paid Sg condo for a tidy sum once his Bungalow is EL is ready and move over. By doing that he can shake leg and lim kopi without being sucked dry by the very expensive cost of living in Sg.

 

[arsenal]

Ha, I thought only the civil servants or PAP will say serious bo....are you one of them?
Grad driving taxi is common these days.. Employers want cheap, young and Tua L.. Definitely not old birds..
I also don't see any wrong with driving taxi.. ha.. Maybe you are out of Singapore for too long..

A graduate driving a taxi? Serious Bro??

 

[arsenal]

Good to hear such reality calls to bring us back to the earth..

I just sign S&P for a new humble house.. Even if market crash, or if there is no rental yield, I am fine..

If you are saying it is a lesser worry for people who invest in JB properties because the loan quantum is much smaller, I beg to differ.

The boom happening in Iskandar properties is very much dependent on the stability of Singapore properties. If monthly mortgage property payment in Singapore rises, those Singapore investors buying JB properties for weekend escapades with a bank mortgage might consider the option of selling it away to ease their financial burden as it is less likely that they will sell away their Singapore property first.

When monthly mortgage payment goes up, people who bought properties in Singapore for rental yield might also consider selling their properties. You will see a group of experienced investors who will be quick to offload their properties with the expectation that they would get a better deal later even if they can well afford to hold their properties. This group would kick off the price consolidation phase.

And when properties prices cools down, rental yield would start to comes down in Singapore and those who rent out their HDB flats and came over to rent in JB for a profit would see this profit margin diminishes and might consider moving back to their HDB flats to save the hassle of increasing jam at the immigration crossing due to current increasing number of Singaporean moving to JB to stay and commutting to Singapore to work. With less Singapore people renting out in JB, those foreign investors from the middle east, China might not view the Iskandar property investment favorably.

I have visited HH gateway recently and seen quite a no. of properties there left vacant and never rented out before. The owner/owners is/are probably holding them out for capital gain waiting on the sideline to offload it anytime when they see a change of mood in the iskandar property scene.
Why they don't want to rent them out while waiting out for their expected capital gain is material for pondering here.

They might not want to spent extra money to put in the kitchen cabinets, lightings and aircon, preferably using the cash for downpayments for buying more properties. They might also prefer not to flood the rental supply market in Iskandar so that they can artificially jack up the rental yields
and attracts more new property investors into the market. .....

When more and more people are buying Iskandar properties for investments and not for residence, the stability of the market will be shaken. The only solid reason for investing in Iskandar now is for the future completion of the MRT link to Singapore, which would provide another strong impetus for More Singaporeans to make their home in JB and commute to work in Singapore.

But what's is gonna happened from now till then is the risk factor that we need to evaluate when considering whether to buy an Iskandar property at current high prices.

 

[jasonjst]

Good to hear such reality calls to bring us back to the earth..

I just sign S&P for a new humble house.. Even if market crash, or if there is no rental yield, I am fine..

Wow bro, can tell a little more on your this later move , dispite the high valuation currently . Or you itchy backside , haha ?

 

[arsenal]

Wow bro, can tell a little more on your this later move , dispite the high valuation currently ? Or you itchy backside , haha ?

Bro.. Spot on.. Backside itchy..armpit also itchy.. I am very please with my house in HH and will never sell.. So I guess I need another one to participate with the growth of Nusajaya...

 

[jasonjst]

A graduate driving a taxi? Serious Bro??

An angry singaporean say this in yahoo forum ( http://sg.news.yahoo.com/pm-lee-warns-of-new-cracks-between-new-citizens--singaporeans.html) :=

"I am near to 50 years old. Lost my job 8 years ago as IT engineer. I am armed with a degree. Find it hard to get a job. Now driving Taxi to support my 2 kids and parrent. Not forgetting about paying monthly housing loan. Life is not easy. In my previous company,there were many FTs from China, pinyo... More."