Living in JB 3 (Johore)

[RedsYNWA]

Let me qualify myself, there is no right or wrong but just a matter investment principle which I differs and rightly pointed out by shctaw that's due to our experience/perspective. Let me share my view:

I have always believe in buying based on location, location and location. My advice for young investors is not to punt like most would in the stock market. Property is not as liquid hence, it's for long haul.

My advice for property investment is two prong approach. Firstly, build a steady and sustainable stream of passive rentals. Secondly, invest for capital gain projects which will then allow you to further enhance your passive income stream.

Having said all that, I am not one who will look at timing the market (again not saying is wrong) but rather concentrate on the intrinsic value of the property (eg, location, accessibility, security, amenities, etc). Basically, "value investment" rather than following the herd too.

Again, most can see that me and shctaw have differing view point but these are just two options. Which is the right option, depends very much on your investment objectives and your risk appetite.

Cheers
N

Probem is how to invest for passive rental income in JB? Rental market cant be compared to SG at all. And if you buy landed, you need to fork out a substantial sum to retrofit the house for tenant use. Capital gain seems to be more appropriate approach but its more risky.....

 

[shctaw]

Next time try to fill the photo with more people lah. Look some empty..... scary leh.

City Square JBCC.

Went to Puteri Harbour and Legoland yesterday. Traders Hotel is quite nice, it looks really simple on the ground floor because the grand reception area and a restaurant is on the 2nd floor. Olive Kitchen, a new restaurant which is facing the Public Marina in Puteri Harbour serves really delicious Indian food and the ambience is great too. Here are some photos;

Puteri Harbour

Olive Kitchen @ Puteri Harbour

Bottom: Goan Prawn Curry
Top right: Murg Tikka Butter Masala (Tender boneless chicken cooked in Tandoor and then simmered in... ...)
Top left: Garlic Naan.
All together: Heavenly combination :P''' Yummy!

Traders Hotel's reception area at 2nd floor

Traders Hotel and Little Red Cube

Legoland Hotel

 

[Investor]

Next time try to fill the photo with more people lah. Look some empty..... scary leh.

City Square JBCC.

Haha ok. Actually Puteri Harbour was quite crowded when I was there. If you look carefully at the photo of the clubhouse, the alfresco dining area was filled with dinners but I took the pic from far. Legoland and Mall of Medini was also quite crowded.

For the Trader's Hotel pic, it was already night time and shops were all closed and guests were in the comfort of their rooms already

 

[Investor]

Nice photos.

You are there for the new launch today?

No I'm not. With more than 1k applicants for 147 units, it'll be difficult to get a unit.

 

[ginfreely]

1. Kondratieff Cycle aka The Major Economic Cycle (ca 1925)
Russian author is a Soviet economist Nikolai Kondratiev
2. Goldbugs - James Dines

Find this 2 first.
Not available in bookshop. I got my copy from James Dines directly.

I am just curious what kind of books would one rate as top 5 most important books in one's life, not finding the books. Too late and too risky for me to do any property speculation, will just be happy with rental return from property. However, other young and diligent investors may find your sharing of the books beneficial to learn and avoid making mistakes.

 

[shctaw]

Those book that make me whom I am today.

It is always easy to pick on someone than to contribute.

That is why I only reveal 3 books as I know I am going to get some objection.

Everyone have different target in life..... what is important to me may be something you will throw away without any consideration.

PS: my 5 books only one is regarding to property. The rest is either on money or trend reading.

The other 2 books are about.....

I am just curious what kind of books would one rate as top 5 most important books in one's life, not finding the books. Too late and too risky for me to do any property speculation, will just be happy with rental return from property. However, other young and diligent investors may find your sharing of the books beneficial to learn and avoid making mistakes.

 

[ginfreely]

Of course you are right. Everyone have a different approach.

Maybe a near broke experience changes me. Just treat me like a "X-men without gut".

I read every word everyone type; learn them; analysise them and implement them if possible.

Thanks for sharing.

PS: I usually do not take in rental income as consideration due to my own condo in D15 been vacant for 5 months before. (after SARS 2004)
View attachment 10582

I think rental income depends on location. Went thru SARS too and luckily my condo in the west did not have vacancy problem. Still, it was indeed a tough period for landlords then. Nowadays people always say landlords are greedy but during those days when landlords are bleeding, no one said anything. But of course, this is not applicable for landlord who have it easy like govt landlord who acquired land/properties at zero or low cost, HDB landlords who bought Hdbs at low price last time and getting 15 or 20 percent gross yields.

 

[ginfreely]

Those book that make me whom I am today.

It is always easy to pick on someone than to contribute.

That is why I only reveal 3 books as I know I am going to get some objection.

Everyone have different target in life..... what is important to me may be something you will throw away without any consideration.

PS: my 5 books only one is regarding to property. The rest is either on money or trend reading.

The other 2 books are about.....
View attachment 10586

I don't quite get what you mean by "it is always easy to pick on someone than to contribute ". Are you saying I am picking on you? I thought you are sharing your knowledge and I was merely asking what are the books. Btw I was also sharing and contributing my thoughts and experience about property too.

 

[kopikong99]

I am at the afiniti launch td. It is pack n estimate 600+ people attend as the number only call less than 700. It end by 4pm no sure fully sold as those call up after draw moving to the sales room for selection. Prices range 830-1016psf. Good snack being serve for morning n afternoon session. Some Sg stay over night in trader hotel for the morning draw. There are jam in 2nd link at M'sia custom from 10am n it take 1.5 hr to reach custom. No built in carbinet for master bed room, no kitchen carbinet, no aircon install and no bathtub plus only "quality tile" for flooring. It will not be same taste as per Capital land's condo in Sg and only M'sian n SPR can accet such over price product.

I hope they don't give wall tiles up to 3/4 wall height as like in one of the earlier Medini condo. Well you get what you paid for and this is acceptable Malaysian standard for their housing due to their low cost and LH.

 

[shctaw]

Not what I meant.
I am just saying once I list out my books sure kenna suan.

Maybe what I type does not go with what I think...hahaha.

This one is a "either you hate or love subject".

I don't quite get what you mean by "it is always easy to pick on someone than to contribute ". Are you saying I am picking on you? I thought you are sharing your knowledge and I was merely asking what are the books. Btw I was also sharing and contributing my thoughts and experience about property too.

 

[shctaw]

Lost of rental income is a "rich man problem"'

If base on purchase price during SARS; my rental return now is 20% per annum. But what the hack........

I still do not believe in rental return in Johor.

I think rental income depends on location. Went thru SARS too and luckily my condo in the west did not have vacancy problem. Still, it was indeed a tough period for landlords then. Nowadays people always say landlords are greedy but during those days when landlords are bleeding, no one said anything. But of course, this is not applicable for landlord who have it easy like govt landlord who acquired land/properties at zero or low cost, HDB landlords who bought Hdbs at low price last time and getting 15 or 20 percent gross yields.

 

[DCputeri]

IMO Property investment in iskandar is not for rental return too. Just kind of diversifying property portfolio.

Lost of rental income is a "rich man problem"'

If base on purchase price during SARS; my rental return now is 20% per annum. But what the hack........

I still do not believe in rental return in Johor.

 

[streams]

Despite that, i am not taking risk. Properties will still be near CIQ/MRT/EDL. i am not rich enough to keep properties empty. And even if i could, I am insanely protective of personal cashflow.

IMO Property investment in iskandar is not for rental return too. Just kind of diversifying property portfolio.

 

[streams]

Johor property tax not a problem dated June 8.

http://biz.thestar.com.my/news/story.asp?file=/2013/6/8/business/13215293&sec=business

IT was a bit of a surprise.

Everyone would have been excused for thinking just what will be done next to increase sales of properties in Johor to foreign buyers. Nobody expected Mentri Besar Datuk Seri Mohamed Khaled Nordin to announce that higher taxes will be imposed on properties owned by foreigners.

Reaction to a potential property tax hike was swift.

Some said it will be disastrous. Others said no problem as foreigners owned less than 5% of property in the state.

Well that really depends on where the concentration of that 5% is.

As it stands, a lot of property in Iskandar Malaysia is being snapped up by foreign buyers, in particular Singaporeans.

The location is right. It's just north of the republic and Singaporeans will be able to own a luxurious house in Iskandar for a fraction of what it will cost in their home country. Designs of homes are modern, land is in abundant and its living in a house few can only dream of in Singapore.

Any proposed hike in state property taxes should come in either assessment or quit rent, and the thinking behind it is that those higher charges should reflect the current market price of those properties.

There has been a big jump in property prices in Iskandar Malaysia. Prices of new launches are said to have approached RM1,000 a sq ft and that is the price many prime areas of Kuala Lumpur are seeing today.

I don't think a small increase in assessment or quit rent is going to stop a foreigner from buying property in Iskandar when the price of property keeps going up. The money they might stand to make from capital appreciation of their property would more than compensate for any small rise in state property taxes.

For the state, it's extra money and it was careful to say new property charges will not apply to Malaysians.

The differentiation between taxes on locals and foreigners is not something new. In fact, Singapore has increasingly made it costlier for foreigners to own property on the island.

But that has not deterred foreigners from buying property there. In fact, Malaysians and other foreign nationals continue to snap up high end properties there, albeit at a slower pace, despite the introduction of new measures.

Maybe the imposition of new taxes on foreign purchases should be a start. Escalating property prices will only infuriate Malaysians who desire to own a home. Seeing prices go out of reach will frustrate genuine homebuyers, and is increasingly becoming a political issue here as it already is in Singapore.

Maybe the state, or even the Government, should consider doing what other countries in the region have done.

Although foreigners can buy properties in Singapore, its limited to condominiums. Want to buy landed property in Singapore? You have almost no chance of doing so.

You can also forget buying freehold landed property in Indonesia and have the title in your name. You have to use a nominee.

Restrictions also apply in Thailand although there are ways around it through setting up of a company. Foreigners also cannot directly own land in the Philippines.

If those countries are protective of their land, I wonder if Malaysia should do the same?

For a start, maybe the floor price of foreign onwership of land in Malaysia should be raised. The current minimum price of RM500,000 basically means foreigners can buy just about any house they want to.

To be effective, the floor price should be raised to RM1mil. Maybe there should be a consideration of higher minimum prices if the size of the house or lot is larger.

> Business editor (Features) Jagdev Singh Sidhu feels the prices of new homes are already too high in Malaysia.

 

[Funds Transfer]

IMO Property investment in iskandar is not for rental return too. Just kind of diversifying property portfolio.

I second that, bro!

 

[Funds Transfer]

Despite that, i am not taking risk. Properties will still be near CIQ/MRT/EDL. i am not rich enough to keep properties empty. And even if i could, I am insanely protective of personal cashflow.

Have you considered investing in other locations like Kuala Lumpur, Australia or New Zealand since yield appears to be your priority? You may get better assurances there.

 

[streams]

For properties in Malaysia, I am mainly looking at capital appreciation. Depite saying that, I would still hope for some decent rental returns to cover mortgage as I have not decided whether to hold properties beyond TOP period. It depends on infrastructure progress in the future.

I am presently holding on to Singapore and Philippine properties which are both giving me decent capital and rental returns- the best of both worlds? what i meant is that we need both capital appreciation and rental properties for the long term. The latter will help us build cash capital to procure more investable properties, and hold on to existing capital appreciation properties. I see myself as a hybrid investor.

Have you considered investing in other locations like Kuala Lumpur, Australia or New Zealand since yield appears to be your priority? You may get better assurances there.

 

[shctaw]

My favorite strategy.

见好就收。

For properties in Malaysia, I am mainly looking at capital appreciation. Depite saying that, I would still hope for some decent rental returns to cover mortgage as I have not decided whether to hold properties beyond TOP period. It depends on infrastructure progress in the future.

I am presently holding on to Singapore and Philippine properties which are both giving me decent capital and rental returns- the best of both worlds? what i meant is that we need both capital appreciation and rental properties for the long term. The latter will help us build cash capital to procure more investable properties, and hold on to existing capital appreciation properties. I see myself as a hybrid investor.

 

[tansi]

Overseas property investment always carries risks and prudent research does not guarantee risk free, including property in Leisure Farm. Yes, Leisure Farm. 4.5 years ago when I considered buying in Bayou Water Village, I found out there was an ongoing legal case between a precinct and LF on title deed. LF personnel assured me there won't be any such issue with the new BWV. I gave them my trust. True enough, about a year after collecting key, I received LF letters on application to state authority. last year I received LF notice to pay their law agent the full sum for title deed transfer and I duly did so. I was advised by the law firm xfer should be completed by January 2013. Then no more a word from LF and its law agent. When I enquired again last week, the law firm suggested might be I owed LF maintenance fund and the firm did not get the signal to release title deed. I personally chased after admin staff to notify LF law agent that I settle monthly bills duly and I owe nothing to LF. Then the lawer informed me that there is no title deed in her file of my property, she believed LF's developer, Mulpha, still hold on to the title deed. So the situation is I pay fully and on time, LF's law agent collected full payment to process title deed xfer, LF's developer holds on to title deed. I know that my neighbours also did not receive their title deeds.
Lack of title deed is a common problem in Malaysian property market. When a developer seems to do the right thing of applying to state govt with all the paperworks and convince an owner to pay and pay, it still holds on to the thing one is paying for, the title deed. Why developer wants to hold on? I could only speculate as LF never clarifies. Could it be developer can demand a cut in any transaction since the seller cannot produce a title deed in his/her name whenever a potential buyer ask for it?

 

[jamestan88]

Like you, many successful people achieve their dreams with hard work, passion and a strong desire to learn. Reading lets one stand on the shoulders of giants. The wisdom of those who pen their experiences can be found in their books/literary works. Thus we are able to learn from their mistakes and their brilliant moves without us having to go through the terrible pain ourselves.