Living in JB

[linked]

Hi linked

U might wan to try this, we uses deodorized insecticide which contains synthetic pyrithoid. Mixed it with water n in a commercial spray. We sprayed it when necessary in the garden and the perimeter of outside of yr house. Remember to close all doors n windows first. We are doing it for both Singapore n Jb home. And never experience mosszie than.

Thanks for the reply Sanur, the deodorized insecticide can be spray to plant? also to wall and windows etc cos those mozzies likes to cling to these places too, thank again.

 

[Sanur]

Thanks for the reply Sanur, the deodorized insecticide can be spray to plant? also to wall and windows etc cos those mozzies likes to cling to these places too, thank again.

Yes,

It can b spray on Plants n walls too. But not on food

 

[Investor]

bro..there is never a doubt in my mind nusujaya prices will rise...even double in 5 years time..yes..i am as optimistic as you. thats why i m vested. but my point is this...even with doubled prices, after subtracting what we have put it, the fruits might not be as spectacular as what some might be expecting...lets calculate based on your numbers to illustrate my point. Assume RM500K house with RM400K loan. Double in price to RM1 million in 5 years time. wow.

Sale price = RM1 million
minus
loan outstanding RM360K
Initial down payment RM100K
Instalment paid RM120K
Reno + furnishing + maintain RM100K
legal/admin/tax/insurance RM50K
net gains = RM270K....or around S$100K..or S$20K per year.

so in order to see some sort of gains...Prices REALLY HAVE TO DOUBLE...anything less and it may not be worth the while...for many people even for the super optimistic ones like us, doubling in price in 5 years time could be a tall order bro.

i am for investing in nusujaya, but one has to do it with less gearing, not higher gearing as what some bros suggested here.

Hi Yonglip, thanks for sharing your calculations and I think it's good that you look at things in details. I'll also share some details which you might have missed out. Let's see profit in terms of percentage. From your above figures, your total capital after 5 years is RM370k and profit is RM270k. So that's a profit of about 73% in five years. We can increase the profit percentage significantly by;

1) Reducing the reno to RM30k since we'll be renting it out if it is purely for investment - Save RM70k.
2) Reducing the insurance to zero(I didn't buy their home insurance for my units too) - Save RM30k.
3) Rent out the unit since it's for investment. Lets say you've only managed to rent out for 4yrs instead of 5yrs. RM3k for 4 years equal RM144k.

Thus your capital for this investment is reduced to RM270k and profit becomes RM514k. Profit in terms of % has increased from 73% to 190%.
190% is much higher than the actual 100% gain in property's price and it was made possible because you've taken 80% loan instead of paying in full cash of RM500k.

So for high risk takers, I have to agree with Puteri Harbour and like-minded people like Wuqi that it's really not a bad idea to take more loan(high gearing as mentioned by yourself) when banks are still willing to give you one as you might still be young and capable. Imagine at age 50, banks won't give you a 30 years loan anymore even if you want one. That's also why our big brother, thread starter Wuqi himself is doing high gearing in order to secure as many units as possible when he sees this opportunity and not wanting to miss it by just 'taking things easy'.

But again, this kind of investment is for the high risk takers and highly ambitious types. Everyone has their own goals in life and non of those goals might be money. To each his own - I respect that.

 

[Investor]

never know bro..one day the 2 govt might wake up and realise it make a lot of cow sense to build a 3rd link from Punggol area to Paisr Gudang..when that happens, it will be another round of boom boom boom...

We have the same view about a possible 3rd link via Punggol area to Pasir Gudang

 

[Grago]

Yes,It can b spray on Plants n walls too. But not on food

Hi Sanur, would it be Fun Florist and Nursery or Far Horizon Nursery and Landscape. Both on Thompson road and not far from Mt. Alvernia Hosp. The commercial sprayer that you mentioned, where in Johore to go and get it from? By the way thanks for the Infor. on putting the mosquitoes at bay!

 

[JJP1122]

I have look thru your calculation. I think there's some error...


The Profit from the Sales should not minus the "Instalment Paid RM 100K"
Cos you have already deduct the "Loan Outstanding Amount RM 360K"

bro..there is never a doubt in my mind nusujaya prices will rise...even double in 5 years time..yes..i am as optimistic as you. thats why i m vested. but my point is this...even with doubled prices, after subtracting what we have put it, the fruits might not be as spectacular as what some might be expecting...lets calculate based on your numbers to illustrate my point. Assume RM500K house with RM400K loan. Double in price to RM1 million in 5 years time. wow.

Sale price = RM1 million
minus
loan outstanding RM360K
Initial down payment RM100K
Instalment paid RM120K
Reno + furnishing + maintain RM100K
legal/admin/tax/insurance RM50K
net gains = RM270K....or around S$100K..or S$20K per year.

so in order to see some sort of gains...Prices REALLY HAVE TO DOUBLE...anything less and it may not be worth the while...for many people even for the super optimistic ones like us, doubling in price in 5 years time could be a tall order bro.

i am for investing in nusujaya, but one has to do it with less gearing, not higher gearing as what some bros suggested here.

 

[Investor]

Hi yonglip,

I am more bullish than you. I think MYR will appreciate at least 20% next 5 year and investor will make 20k more. If investor fund it from Singapore equity loan, the interest cost will further be reduced.

So ROE may be more than 100%. Better than equity investment.... Cheers...

Hi PH and everyone else,

Since most of us here either already have or are planning to get property/ies in Iskandar. This currency risk thing really should be a concern to all of us.
I'll start by sharing my own personal non -professional view about the currency risk for our property/ies in Iskandar, hope to hear the views from others in return.

On simple thought, we might be afraid that - what if 5 years later when we want to sell our unit, RM has further depreciated to RM3 instead of present RM2.45?
So if you sell your unit for RM 1 mil, instead of getting back approximately SGD408k based on current rate, we'll only get back SGD333k because RM depreciated? Here's my view - For Singaporeans buying overseas properties, I think Iskandar Region is the only special oversea area which has a unique factor which will help us in having almost no risk on currency fluctuation. This is because the main idea of Iskandar region is to attract invesments from Singapore due to its close proximity to us. Thus in future most buyers for Iskandar properties, especially Nusajaya, will be Singaporeans(For your info Imperia at Puteri Harbour is 50% sold and Singaporeans made up 70% of the buyers). As most of us here are Singaporeans, ask yourself this question - How did you judge whether the property in Nusajaya which you've commited is overpriced or not? Obviously, we didn't judge the price based on Johor's average price. If we did, we wouldn't have bought a property which is obviously 3 times higher than average price in Johor. What we did was to convert the price to SGD and decide whether or not it is a price we are willing to pay. Right? Eg. A terrace is selling at RM500k, we'll convert it to appr. SGD208k and say - ok that's what I can afford. Thus no matter how RM and SGD fluctuate, we'll still convert the price in RM to SGD and make our decision.

So if a Singaporean is willing to buy your terrace at SGD500k five years later, he'll pay SGD500k no matter what the exchange rate is at that time.
Meaning if RM remains at RM2.45, he'll be willing to pay RM1.225 mil(SGD500k x 2.45).
If RM has depreciated to RM3 after 5 years, this same Singaporean buyer will still be willing to pay SGD500k, thus equals RM1.5 mil for your terrace(SGD500k x 3). So even though RM depreciate, buyers being mostly Singaporeans, will judge your selling price in the amount of SGD he is willing to pay - thus covering your losses in exchange rate.

But if RM appreciates instead of depreciates, don't need to be too happy. Let's say if RM appreciates to RM1 to SGD1. That future Singaporean buyer will still be only willing to pay SGD500k for your terrace(that converts to RM500k as exchange rate is 1 is to 1). Thus no matter appreciates or depreciates, you'll still get back the same SGD500k which the future buyer is willing to pay.

The above is for future selling price. As for buying price, it'll definitely be better if SGD is as strong as possible whenever we convert it to RM for payment of our property/ies. That equates to a lower buying price in SGD.

That's just my simplistic thought, please share your view and highlight what I may have overlooked.

 

[lastresort]

I think investing or doing business in JB is also part of what we do when we live in JB.

Let me share my conservative prudence estimation.

Sale Price: RM 800k

Less:

Loan Outstanding RM360K
Initial Down Payment RM100K
Installment + Interest Paid RM120K
Reno + Furnishing + Maintainance RM30K
Legal/Admin/Tax/Stamp Duty/Levy/Progressive Interest RM50K

Net Sale: RM140k

Plus Income from Rental after Income Tax Deduction: RM100k~

Net Profit after Tax and Interest: RM240k~

Expenses paid in cash:
Initial down payment RM100K
Installment + Interest Paid RM120K
Reno + furnishing + maintain RM30K
legal/admin/tax/insurance RM50K
Total: RM300K

ROI: 240/300 x 100% = 80%

It's still a very decent return.

I am certainly bullish and a high risk taker with big ambitions too.

 

[Investor]

MAS stance is always there. US and Europe is also import a lot from china. Why then do they want their currency to weaken against the yuan? Currency strength is determine by economic growth and government maturity to match global inflation.

Economic growth. If a country A grow faster than country B, naturally the currency of the country A should strengthen over time. Developing country are usually self sufficient at initial stage of growth. As growth pick up, they will need to import talents and technology where it is more costly than exporting low value added electronics and farm products. At one point Malaysia may not have enough resource for themselves. One good example is oil.

Government maturity on global inflation. If every government in the world allow their property to go up 100% in the next 10 years. And our govt allow the prices to stay put. Our people will be happy but (Assuming currency is stable) we will be poorer relative to the world. You need a strong government to implement such unfriendly policies. Weak govt have to make her people happy and as a result make the whole country poorer. Price growth and Appreciating currency is needed to attract investment. If not, nobody will invest in your country if they know their investment is depreciate every year.

In my previous post, I also mention that weak currency only protect inefficient exporters. To up the technology curve, Malaysia need to gradually appreciate its currency to have a balance between not damaging export and gradually making its companies more efficient.

Singapore export almost 70% of global oil rigs and the subsequent repair and maintenance works. But out currency strength against most currencies. Why? Bottom line of competition is still value added and not pricing.
Hope this will give you some in depth thoughts.....

Just sharing what I have learnt from the many people I met.

Cheers,
PH

Nice input PH

 

[lastresort]

Hi PH and everyone else,

Since most of us here either already have or are planning to get property/ies in Iskandar. This currency risk thing really should be a concern to all of us.
I'll start by sharing my own personal non -professional view about the currency risk for our property/ies in Iskandar, hope to hear the views from others in return.

On simple thought, we might be afraid that - what if 5 years later when we want to sell our unit, RM has further depreciated to RM3 instead of present RM2.45?
So if you sell your unit for RM 1 mil, instead of getting back approximately SGD408k based on current rate, we'll only get back SGD333k because RM depreciated? Here's my view - For Singaporeans buying overseas properties, I think Iskandar Region is the only special oversea area which has a unique factor which will help us in having almost no risk on currency fluctuation. This is because the main idea of Iskandar region is to attract invesments from Singapore due to its close proximity to us. Thus in future most buyers for Iskandar properties, especially Nusajaya, will be Singaporeans(For your info Imperia at Puteri Harbour is 50% sold and Singaporeans made up 70% of the buyers). As most of us here are Singaporeans, ask yourself this question - How did you judge whether the property in Nusajaya which you've commited is overpriced or not? Obviously, we didn't judge the price based on Johor's average price. If we did, we wouldn't have bought a property which is obviously 3 times higher than average price in Johor. What we did was to convert the price to SGD and decide whether or not it is a price we are willing to pay. Right? Eg. A terrace is selling at RM500k, we'll convert it to appr. SGD208k and say - ok that's what I can afford. Thus no matter how RM and SGD fluctuate, we'll still convert the price in RM to SGD and make our decision.

So if a Singaporean is willing to buy your terrace at SGD500k five years later, he'll pay SGD500k no matter what the exchange rate is at that time.
Meaning if RM remains at RM2.45, he'll be willing to pay RM1.225 mil(SGD500k x 2.45).
If RM has depreciated to RM3 after 5 years, this same Singaporean buyer will still be willing to pay SGD500k, thus equals RM1.5 mil for your terrace(SGD500k x 3). So even though RM depreciate, buyers being mostly Singaporeans, will judge your selling price in the amount of SGD he is willing to pay - thus covering your losses in exchange rate.

But if RM appreciates instead of depreciates, don't need to be too happy. Let's say if RM appreciates to RM1 to SGD1. That future Singaporean buyer will still be only willing to pay SGD500k for your terrace(that converts to RM500k as exchange rate is 1 is to 1). Thus no matter appreciates or depreciates, you'll still get back the same SGD500k which the future buyer is willing to pay.

That's just my simplistic thought, please share your view and highlight what I may have overlooked.

well said brother, I also agree Iskandar is a special region with very strong fundamental. Being close to Singapore is one, if not it would be no different from Kedah, south of Thailand.

Regarding whether Singapore buyers will decide based on SGD, I think there are 2 distinct groups of buyers. Most of us buying to stay might decide based on SGD and relative price difference between Iskandar and Singapore.

 

[Investor]

Some of my personal rules in investment.
Rule 1 - 20% control 80% of the wealth. As long as you follow this 20%, your asset and goods will be liquid....
Rule 2 - buy investment as is constraints. Inland vs coastal land. Coastal land is more limited and has great view.
Rule 3 - buy anything (except things that is invisible) that drop more than 60%. Everything has a cost to it and the cost cannot be zero.

Rule 1 and rule 2 will ensure that You will always have a buyer for Your investment cause the Rich will always be rich regardless of economic environment. They still can buy. The poor will be poorer In economic downturn and probably cannot buy Much. So rule 1 is extremely important...
Rule 3 can stand alone because rule 3 is buying on valuation.

Hope the above helps.....

Cheers,
PH

Hi PH,

If that's your view, I think you might be interested in Puteri Harbour's water front bungalows whereby every unit can have their own yacht right at the backyard I heard that the price will be somewhere from RM6 mil(SGD2.x mil). Great price for those who really like such a lifestyle, easily 8 times more in Sentosa Cove. Moreover, at this price, one can only get a terrace near Tanjong Katong(there we go again, price comparison in SGD and comparing what we can get in Singapore)

 

[linked]

I was visiting Taman Molek and noticed Diamand Pest Control sign. They charge 150RM for ants, cockroaches and mosquito fogging once a month with one year contract. However, fogging is not very effective if your neighbors don't do that. Since I stay at EL as well it would be good if you will do it too

Not sure if that is their correct web-site as I've just use Google to find it. PM me if you need more details.
http://www.diamondpestcontrol.com/

Hi rw6akr, I wouldnt mind your suggestion but im not sure if my right next neighbour would join, and the left neighbour dun live in. Houses behind mine is still empty so I dunno how effective it'll will be since mozzies are all over.

 

[lastresort]

MAS stance is always there. US and Europe is also import a lot from china. Why then do they want their currency to weaken against the yuan? Currency strength is determine by economic growth and government maturity to match global inflation.


Cheers,
PH

Hi PH, Japan is a net exporter as it doesn't rely much on FDI, and exports many electronic goods (many of the high tech stuff are still produced and assembled locally, relying less on cheap labour overseas). The MNCs also invest largely in overseas market contributing to even greater capital outflow. 1 SGD = 60 Yen. Will Malaysia who is looking East aim to be like that?

 

[linked]

Yes,

It can b spray on Plants n walls too. But not on food

Noted on the food thanks.

 

[lastresort]

Hi PH,

If that's your view, I think you might be interested in Puteri Harbour's water front bungalows whereby every unit can have their own yacht right at the backyard I heard that the price will be somewhere from RM6 mil(SGD2.x mil). Great price for those who really like such a lifestyle, easily 8 times more in Sentosa Cove. Moreover, at this price, one can only get a terrace near Tanjong Katong(there we go again, price comparison in SGD and comparing what we can get in Singapore)

possibly Freehold somemore!

 

[Investor]

well said brother, I also agree Iskandar is a special region with very strong fundamental. Being close to Singapore is one, if not it would be no different from Kedah, south of Thailand.

Regarding whether Singapore buyers will decide based on SGD, I think there are 2 distinct groups of buyers. Most of us buying to stay might decide based on SGD and relative price difference between Iskandar and Singapore.

Thanks Lastresort,
I'm just sharing and hope that others will also share their views so that we can tap on each other's knowledge

 

[Investor]

possibly Freehold somemore!

Yes bro it's FreeHold man. Heard that Danga Island is 99 years and thus not selling well.
I believe those bungalows in Puteri Harbour will sell well.

 

[Investor]

Noted on the food thanks.

Haha linked, I noticed Sanur's humor too I bought EL too, you're staying there and commuting to Sg for work daily? Are you Singaporean?

 

[Narmi]

thanks for the recommendations. now i know where to go, agree citysquare parking very expensive.

Hi euphony bro
Citysquare parkg aftr 6pm is 3rm per entry. Ksl if u buy 10rm worth of tesco pdts got 2hr free parking redemption jus dun forget to brng along d parlg tix and tesco receipt.

 

[lastresort]

Yes bro it's FreeHold man. Heard that Danga Island is 99 years and thus not selling well.
I believe those bungalows in Puteri Harbour will sell well.

Danga Island is freehold, been to their office I wonder why they are not able to sell well..