Living in JB 3 (Johore)

[siacw]

Looks like the big balloon might burst anytime.

My colleague visited the Sunway showroom and was told the sales was so good that there is only 1-2 unit.

When probed, they ( buyers of whom many were Malaysians earning RM 2000 a month ) simply paid 3% booking fees and when they secured a loan, which is easy given that there are no restrictions and up to 85% loan, Sunway will return the 3% to them as the SPA is inflated. That means ZERO downpayment to secure the units.

I shudder to think what will happen when they TOP and where these low-wage employees can find the money to fork out the monthly instalment which is almost their monthly salary. Developments like this I usually steer clear as the buyers are not investors with ready cash for downpayment at least.

There is a reason why East Ledang, Leisure Farm, Ledang Height, Horizon Hills prices appreciated by 100% in a space of few years while some houses prices are languishing. They do not have "hanky panky" going on so openly. When the houses TOP, you see the buyers with strong cash support. They rather don't rent out the house then to lelong their units.

I am indeed disappointed that a reputable developer can do such a thing.

Also heard that last minute they took away the 2 or 3 years "guaranteed" rental. What does this show? Initially you are telling people how strong and confidence u are about your development and last minute pull out the guaranteed return. Sigh. I hope they can work on this. Otherwise, this is a good development

how you find out they are earning only RM2000 per month?

 

[PuteriWorld]

Singapore banks are notoriously strict due to TDSR as they don't want to run foul of the law. My family member bought a Semi and loan of RM 800K with just a declared salary of RM 3500.

Err.. lets not forget this is JB and its still part of Malaysia

I Love Malaysia! Malaysia ( Everything ) Boleh!

Unlikely. Banks are quite strict w loans now.

 

[PuteriWorld]

I knew some of the senior bank managers who were just fresh graduates when they serve my first loan application decades ago.

Actually they are quite flexible la. When I asked why they even entertain RM 2000/month salaried workers for loans, their answers are always the same.. cos when I was asking them for loans, my declared salary was only S$2000 and luckily they approved my first loan and I made zero default. Over the years I gave them more and more businesses..

Looks like the bankers are having strong confidence in Sunway and are banking on capital appreciation for sure even though its 129 leasehold.

I for me choose Sunway Iskandar, Medini and PH as the top 3 places where investors should put their money in. R&F maybe yes cos its so near so MRT and CIQ. Danga Bay Country Garden and Vantage Bay... well.. you may want to check it out if you have the time. I prefer to spend my time roaming around Nusajaya.

how you find out they are earning only RM2000 per month?

 

[Sagitarius]

http://news.asiaone.com/news/malaysia/johor-vehicle-entry-fee-could-affect-ties-singapore-say-traders

JOHOR BARU - Business associations have described Malaysia's proposed fee on foreign vehicles entering Johor through the Causeway and the Second Link as unwise.
Small and Medium Entrepreneurs (SME) Association of Malaysia national president Teh Kee Sin suggested that Malaysia should consider a different approach.

"Of course, a RM20 (S$8), RM50 (S$20) or even RM100 (S$40) levy would be significant for the country's revenue, but it would not help strengthen bilateral ties," he told The Star yesterday.
Teh said the Government should instead concentrate on transforming Johor Baru into a more vibrant and lively space, which would then lead to economic growth.

"The authorities must understand that SMEs depend on Singaporeans from the low to middle income category for the bulk of their revenue, and if Malaysia imposes the fee, less of these people would come in to spend their money," he added.

Johor Indian Business Association (Jiba) president P. Sivakumar said that while charging RM20 (S$8) was acceptable, the Government should offer some flexibility.

"We should extend some goodwill by imposing the fee only during peak hours, or by reducing rates on weekends or public holidays for the benefit of genuine travellers," he added.

What the SMEs say sounds right but whether or not KL, Johor administrators and the Sultan will agree. I believe if they impose it, it's only to feel good. Since the last two years new rules have made investments in Iskandar less attractive........surely they do not make the JB residents better.

 

[FHBH12]

Singapore banks are notoriously strict due to TDSR as they don't want to run foul of the law. My family member bought a Semi and loan of RM 800K with just a declared salary of RM 3500.

Err.. lets not forget this is JB and its still part of Malaysia

I Love Malaysia! Malaysia ( Everything ) Boleh!

Just 2 years ago the lending was quite lax. Now the lending is much stricter. Buyers can always book a unit to test their luck, but it may be rejected by the bank if their credit assessment is poor.

If the declared salary is $3,500 RM in Singapore, it will be about $1,400 SGD. This is lower than a fresh ITE/diploma graduate pay in Singapore. Unless your family member is working at junior managerial level in Malaysia. Whether the bank choses to lend also depends on the downpayment and other factors.

 

[PuteriWorld]

That's why I say Malaysia ( Everthing ) Boleh ma.

I got friends who used to secure 92% loans for all his properties in Malaysia and all doubled in prices. Leverage to the highest level I must say

Just 2 years ago the lending was quite lax. Now the lending is much stricter. Buyers can always book a unit to test their luck, but it may be rejected by the bank if their credit assessment is poor.

If the declared salary is $3,500 RM in Singapore, it will be about $1,400 SGD. This is lower than a fresh ITE/diploma graduate pay in Singapore. Unless your family member is working at junior managerial level in Malaysia. Whether the bank choses to lend also depends on the downpayment and other factors.

 

[FHBH12]

That's why I say Malaysia ( Everthing ) Boleh ma.

I got friends who used to secure 92% loans for all his properties in Malaysia and all doubled in prices. Leverage to the highest level I must say

Just a few years ago, both Singapore and Malaysia allowed purchase with 0% downpayment. Singapore and Malaysia only clamped down strongly on property after the ruling parties lost some seats in election. Same for both countries.

 

[FHBH12]

Although I find your story a bit incredible now, at the end of the day, if the bubble bursts, the banks will be worst hit. Hence they should do their due diligence. In the mid to long term (5 years+), property prices should hold or go up. In the short term (<5 years), expect some turbulence for the new areas full of condos.

 

[PuteriWorld]

Many people find it hard to believe when East Ledang semis were launched at RM 700k ( a record ) but rose to RM 1.1m upon TOP and now RM 2.5m. Bungalows RM1.5 or RM 1.8 to RM 4million now. Really Incredible but sad to say, True

Although I find your story a bit incredible now, at the end of the day, if the bubble bursts, the banks will be worst hit. Hence they should do their due diligence. In the mid to long term (5 years+), property prices should hold or go up. In the short term (<5 years), expect some turbulence for the new areas full of condos.

 

[alnine]

Just a few years ago, both Singapore and Malaysia allowed purchase with 0% downpayment. Singapore and Malaysia only clamped down strongly on property after the ruling parties lost some seats in election. Same for both countries.

Many many years ago, Singapore banks also very easy. Just 2 -3years after grad my classmate bought a private condo. I was surprise he could afford one even with the dual income, only to find out the got 95% loan. Their salary went out prop price went up, so when you are yong and the economy is stable you can do this.

 

[PuteriWorld]

Yes this happened in Iskandar when it was still starting out. Every banker and developer first wanted to bring in investors and there was really nothing much for the investors to see but huge tracts of land.

Those who can imagine and bought a few properties are now millionaries.

Many many years ago, Singapore banks also very easy. Just 2 -3years after grad my classmate bought a private condo. I was surprise he could afford one even with the dual income, only to find out the got 95% loan. Their salary went out prop price went up, so when you are yong and the economy is stable you can do this.

 

[Sagitarius]

I was talking to her last week. I kept quiet when she told me she is looking for rental for around rm2500 for her shoe box unit. I was driving when she told me. I got a shocked. They are good girls trying to get rich by investing. Nothing wrong with it. But when you surround yourself with some Evil property friends who tries to influence you. That will be bad. How i wanted to tell her they had been dubbed by her property agent friend into buying such show box unit.[/QUOTE

When the time comes, it may be still possible to get a rental of around rm2.5k.....with good furnishings and the right tenant. But at this moment it is unthinkable. I heard a room rental is going for rm200 and a terrace house for rm600. I believe many people bought into Iskandar with its intense publicity unknowingly thinking the property market is akin to Singapore's, flip over when CFO comes and rent it with high rental. The people are not there and those prepared to pay more are rare.

 

[FHBH12]

Yes this happened in Iskandar when it was still starting out. Every banker and developer first wanted to bring in investors and there was really nothing much for the investors to see but huge tracts of land.

Those who can imagine and bought a few properties are now millionaries.

Stronger economic growth ahead to lift up property prices and inflation.

US stocks surge despite crises in Ukraine, Gaza
POSTED: 19 Jul 2014 04:48
US stocks surged higher as strong Google earnings and a large pharmaceutical deal offset worries about worsening international crises in Ukraine and Gaza.
http://www.channelnewsasia.com/news/business/us-stocks-surge-despite/1271810.html

US opens door to East Coast offshore oil and gas drilling
POSTED: 19 Jul 2014 07:16
The United States opened the way to offshore oil and gas exploration in the Atlantic Ocean, authorising the controversial use of sonic cannons for seismic surveys.
http://www.channelnewsasia.com/news/business/us-opens-door-to-east/1271932.html

 

[siacw]

I knew some of the senior bank managers who were just fresh graduates when they serve my first loan application decades ago.

Actually they are quite flexible la. When I asked why they even entertain RM 2000/month salaried workers for loans, their answers are always the same.. cos when I was asking them for loans, my declared salary was only S$2000 and luckily they approved my first loan and I made zero default. Over the years I gave them more and more businesses..

Looks like the bankers are having strong confidence in Sunway and are banking on capital appreciation for sure even though its 129 leasehold.

I for me choose Sunway Iskandar, Medini and PH as the top 3 places where investors should put their money in. R&F maybe yes cos its so near so MRT and CIQ. Danga Bay Country Garden and Vantage Bay... well.. you may want to check it out if you have the time. I prefer to spend my time roaming around Nusajaya.

that doesnt say anything about sunway iskandar buyer are only making 2K per month, it is just base on your own assumption.

 

[Gardener]

Banks are not charitable organisations. Neither are they not for profit. Very simple rule of thumb, everyone goes through credit/risk assessment.

Yes 0% dp may be possible.

But thats after the assessment.I know of friends who secured 5~10% more than their assessment allowed them.

But thats a risk banks may be prepared to take.

But throwing all norms out the window and disbursing loans...... ? I dun think so.

 

[juanra]

PuteriWorld,

Sunway is one of the leading property developers in malaysia. There are in a different league compared to UEM, Gamuda etc..

Sunway has a proven track record in KL, they don't build houses, they build communities, with their own police force, they bring jobs through their universities, hospitals, them parks, shopping malls, and most importantly, they bring public transportation (they are building a BRT line in Kl to connect Bandar Sunway with KTM/LRT stations ).

So, given that the HSR station will be less than 5 km away from SUnway Iskandar, you can expect the core of the city to be seamlessly connected to the HSR station by public transport.

Really, sunway is the most appealing project in nusajaya, the one that excites me the most.

how you find out they are earning only RM2000 per month?

 

[PuteriWorld]

I was told many buyers were in the RM 2000 / month category but I dint ask more as its none of my business anyway. Those RM 800- RM 1500 income buyer will have to get a guarantor to join them. Anyway, the loan quantum is 85% for this project and zero DP. Any Tom Dick and Harry could buy if they don't own any other properties. Even if they do have resid units, I understand Commercial unit loans do not take into account other resid loans

that doesnt say anything about sunway iskandar buyer are only making 2K per month, it is just base on your own assumption.

 

[juanra]

I was told many buyers were in the RM 2000 / month category but I dint ask more as its none of my business anyway. Those RM 800- RM 1500 income buyer will have to get a guarantor to join them. Anyway, the loan quantum is 85% for this project and zero DP. Any Tom Dick and Harry could buy if they don't own any other properties. Even if they do have resid units, I understand Commercial unit loans do not take into account other resid loans

Why zero downpayment? If the loan can only fund 85%, I understand the remaining 15% mush come from your savings.

 

[PuteriWorld]

The SPA price is inflated. You pay 3% DP, then when u secure a loan which is based on SPA price, they will return you back the 3% as they got some "rebate" for you. Its playing around the rules.

Why zero downpayment? If the loan can only fund 85%, I understand the remaining 15% mush come from your savings.

 

[Gardener]

Zero why, I dunno.

But in cases where risk assessment is good and ur eligible for say 85%, and you dun hv 15%, banks may choose to give you 5~10% more and ofcourse they are bearing that additional risk.

Why zero downpayment? If the loan can only fund 85%, I understand the remaining 15% mush come from your savings.