Living in JB

[Grago]

Saw a Black Range Rover Evoque yesterday coming over to HH at Tuas. Was that you Euphony.......

 

[Investor]

I've decided to pull out of my JB property hunt as I feel it is being priced at premium.
- Nusajaya location isn't yet mature and the land is 3x of singapore.
- The rental market is poor and with the flood of Singaporean money into Nusajaya or surrounding, this create the surge in supply. This will give further poor rental yield.
- I was talking to developer and for the property around RM700k + RM100k reno + fitting = her monthly estimated rental is only RM2k to max RM2.5k.
If I buy this Nusajaya property it only means I'm subsidizing others to stay.
- Whenever only foreigners are buying. The property is deemed to be premium. Look at who are buying in Nusajaya? 90% foreigners.
- With equal price/psf I can get a better appartment at the heart of KL, the capital.

Just compare this Orion condo in KL with Impiana East Ledang:
http://www.iproperty.com.my/propertylisting/821509/City_Centre_Condominium_ForSale
- Impiana has inferior appartment status while Orion is a condo status.
- psf price wise is the same but I believe Orion has better interior fitting as it has condo status.
- Orion at the heart of KL city. Impiana at the heart of ledang city still surrounded by woods.

Similarly you still can find landed in KL with the price of Horizon Hills. why would I buy unproven location?

Hi Bro sggecko:

I respect your decision. However, let me provide some clarifications and commments:

- I think you are confusing Nusajaya with overall Iskandar. Nusajaya is just one of the five flagship zones within Iskandar, and arguably the most matured. I would say Nusajaya is around 1/8 the size of Singapore. Nusajaya is the home of most of the confirmed developments, such as Educity, Medini, EL, HH, Pinewood, Marlboro College, Puteri Harbour, JSNAC Kota Iskandar, etc. It is located strategically between the two links and most accessible from Singapore. To me, land here is very limited as most of it is already master planned. Infrastructure, from what I can see, is outstanding.

- Before you jump into conclusions based on what ONE developer of ONE property tells you about rental yields, I would suggest you do an internet search for developments such as East Ledang or Horizon Hills. You will hardly find any availability. Even if you do, the going prices are exhorbitant. Remember - people are buying for investment, retirement, own stay, weekend stay - this does not necessarily mean that every single home will be available for rent. Rental yield will depend on exact location, accessability, security, infrastructure, availability, etc and will never be the same for every single development. True, there is a potential for healthy supply in Nusajaya, but there is a potential for healthy demand as well, once the planned 'catalytic' developments get completed.

- Getting an apartment for same/similar psf in KL does not necessarily make it a better choice. As many of the bros rightfullty pointed out, your choice depends on your requirement and some of us are committed to Nusajaya because given its proximity to Singapore the price is still very attractive. This is one place where we can live and still be attached to Singapore.

- Some folks have already pointed out that the 90% figure you have for foreigners is a bit over the top. Also, there is a difference, these foreigners are not 'remote control' investors from PRC or India or Corporations who will start dumping the properties once the economy goes south. But, these foreigners are mostly Singaporeans, and a good chunk have purchased for own stay, retirement or weekend stay, besides investment. These folks are proudly committed and are in for the long haul.

- Developments within KL has its own pros and cons. Before you take a plunge just based on the price, I suggest you do some research as to why the price is so attractive. And you dont have to do much beyond going to our old friend google.com. Here is what I came up with regarding the Orion condo:

http://www.propwall.my/jalan_tun_razak/the_orion

Just scroll down to the 'Analysis' section and you will know why this is so cheap, given prices in some prime KLCC developments are hitting RM 3,000 psf. You get what you pay for.

Anyway, wish you all the best.

Hi DREAMorACTION,

Firstly, I would like to say that I'm not an expert. I just view things in simple ways and I'm very daring even when using my own hard-earned 'real' money, that's all.
There are quite a few bros here who are more intelligent and has more in-depth knowledge in investment than me, I've learnt a lot from their posts.

For your questions below, I believe IskandarRocks's reply to sggecko's post on the 'Orion Condo(KL) VS Impiana(Nusajaya)' already has some answers.
It's all about 'Location'. Many has heard that in property investments, it's all about 'Location'. But few really understand that this word 'Location' actually means 'Very Specific Location'. Thus many will be scratching their heads and think, "Why is Orion so cheap(a few hundred psf) when it's just 2km away from KLCC while other prime KLCC Condos are hitting 3000 psf(as mentioned by IskandarRocks)??? The answer is 'Very Specific Location'.

Based on the above, lets look at your concerns below,

How do u view the ease of liquidity/disposal of properties? Majority prefers to buy off plan from developers instead of sub sale because the offers by developer are quite attractive and palatable. We shall hope that the gov maintain the proposal that come 2015, developer can also sell upon completion. Then the subsale market will see tremendous changes.

There are many other land resources at the outskirts of nusajaya. The ease of transportation and current reasonable price has resulted people dont mind traveling a bit longer (and maybe perhaps just 10 mins longer at most) by staying further. More so while the property prices have increased quite handsomely, the car price see no/little appreciation. Will this play a little effect on the potential investment return, despite even after the nusajaya is fully bloomed? What's your view bro?

I think this can be answered by the 'Very Specific Location' criteria in property investments. Such 'Very Specific Location' or 'Prime land' have limited supplies when compared to the vast supplies available from the vast land resources at the outskirts of Nusajaya(or any other cities' Core CBD area). When a developer fully sell a specific development in a prime area(eg. Ion Orchard) and you are well-to-do enough to want only such a location, you can only go for re-sale, I think that's when the resale market will see demand. Again, with demand but limited supplies in such Prime Land, price will go up or at least sustain, based on present price of Nusajaya.

1) There are definitely people who don't mind the commute and go for a cheaper choice 2km away, but supplies from such vast area outside a city are very high.
2) There are many well-to-do ones(eg expats) who prefer Prime Area whereby they can walk to work, and supplies in Prime land are limited.

So if you have your concerns as stated above by yourself, will you choose;
1) Huge supplies with future demand from the Not-so-high income.
Or
2) Limited supplies with future demand from those with 'Big Spending Power'?

Why did people pay SGD100k above valuation for a HDB flat which is within 2 mins walking distance to Tampines MRT and Tampines Mall?
Will this same buyer pay the same price for a HDB flat which is 8 mins' walk away?

 

[pasture8]

Bro, u always self destruct. R u some sort of last action hero ? Hehe

This forum is so much fun in addition to discovering and learning about property investments and living in JB.

 

[lastresort]

my sales said me before , u all singaporean , govt say cannot then u all cannot. very obedient . But do u think msia will release info to SG who is buying in jb ? I laughed ....anyway i wont buy SG resale pigeon hole , overpriced , i cant see myself to be a sucker .

Sis are u married. What if your hubby wants to live in pigeon hole next time.

 

[Grago]

Right , I dont see how KL and Penang can do it but not JB . Infact JB should be able to do better since JB land is so near the Gold mine. Or the Sultan of JB is sleeping on the Gold mine without knowing , wakeup suddenly by Najib to uncover the gold.

Bro, for those of us who are invested here "GOLD DUST" also can..... BUT Bro Wuqi has hit gold nuggets

 

[Investor]

That's why i am in love with Zhang Wuqi256 :*: - This message will self destruct in 5 seconds...5...4...3...2...

LOL I find this damn funny, twice! But dunno why this time got surname 'Zhang' added.

 

[DREAMorACTION]

Oh bro investor, any advice is good for discussion. And to me, more info by more experiences people is certainly good for me to learn.

Your points are well noted. U r quite right, sometimes when I hear "location, location, location, it is so widely used even the aunty uncles also repeatedly saying it. The point on "very specific location" shall be the term. That's quite true. With prime location plus personal sentiments, one would pay above valuation to get it. I truly appreciate the meaning of location now. Thanks!

.

The answer is 'Very Specific Location'.

Based on the above, lets look at your concerns below,




I think this can be answered by the 'Very Specific Location' criteria in property investments. Such 'Very Specific Location' or 'Prime land' have limited supplies when compared to the vast supplies available from the vast land resources at the outskirts of Nusajaya(or any other cities' Core CBD area). When a developer fully sell a specific development in a prime area(eg. East Ledang) and you are well-to-do enough to want only such a location, you can only go for re-sale, I think that's when the resale market will see demand. Again, with demand but limited supplies, price will go up or sustain.

1) There are definitely people who don't mind the commute and go for a cheaper choice 2km away, but supplies from such vast area outside a city are very high.
2) There are many well-to-do ones(eg expats) who prefer Prime Area whereby they can walk to work, and supplies in Prime land are limited.

So if you have your concerns as stated above by yourself, will you choose;
1) Huge supplies with future demand from the Not-so-high income.
Or
2) Limited supplies with future demand from those with 'Big Spending Power'?

Why did people pay SGD100k above valuation for a HDB flat which is within 2 mins walking distance to Tampines MRT and Tampines Mall?
Will this same buyer pay the same price for a HDB flat which is 8 mins' walk away?

 

[Investor]

Sis are u married. What if your hubby wants to live in pigeon hole next time.

Wah seems like Lastresort is interested in Jie Di Lian. Kay Kay trying to find out whether or not Crystal is married wor!

 

[Nusajaya]

Hi Arsenal,

Totally agree with you! Its hard to remain the odd one out but we are the ones. No question in my mind that Nusajaya will be turning heads in the next couple of years....

By the time 50% sees it, we know it's time to start a new thread. Maybe "Holidaying in Monte Carlo". What say you?

Congratulations for making a good judgment and decision. a firmed decision to buy or not is a good decision.
90% person of common people will not buy property in JB. We are the rare 5-10%..and we are so happy about it. if one day 50% people think property in JB is good, wow.. the price will be exciting..

It also mean the price is cheap now..

 

[pasture8]

LOL I find this damn funny, twice! But dunno why this time got surname 'Zhang' added.

bro, Wuqi256 is my hero you know...

 

[lastresort]

Wah seems like Lastresort is interested in Jie Di Lian. Kay Kay trying to find out whether or not Crystal is married wor!

Haha very curious mah. She never onced mention, need to discuss with hubby. What if the hubby wants to buy a pigeon hole. I think hdb is still good no matter how exp, its still cheaper than overpriced pte.

 

[pasture8]

Does anybody can tell me how to view terrain on google map. Like what is the altitude of certain locations, like in our SAF maps, that concentric circles...many thanks

 

[yonglip]

Went to see Impiana at East Ledang today..

2 bedders selling at around RM600K..felt claustrophobic with the narrow hallways..based on this price, dont see much upside in the near future even with Educity/Medini etc..

if can rent for RM2500 per month...nett off RM400 (quite high) for maintenance and another RM200 for misc expenses...end up with just RM1900 per month or 3.8% pa returns...when compared to SG deposit rates, its good but realised that M'sia banks are already giving about 3.3 to 3.65% p.a for FD.....

i think maybe better to just put in M'sia FD and save all the hassle...

 

[greddy88]

...
i think maybe better to just put in M'sia FD and save all the hassle...

yes.. there was one finance guy done an analysis and said it actually don't fetch much returns if you want to rent out your property.
that was in SG context though. that did not factor in appreciation/depreciation of the property price.

 

[Nusajaya]

Previously, Malaysian were not allowed to recognise this pile of Gold in JB because of LKY old counterpart in Malaysia. For those who didnt know, he already warned the Johorean not to buy into this Iskandar nonsense because one fine day, you will be working of the Sinkie fellas in your own land! Must admit he has got the foresight to see that coming but unfortunately he saw it to Malaysian detriment instead of development. With him in retirement (let's hope he keeps his gap shut), Iskandar is still pursuing development, getting stronger and brighter each day!

Right , I dont see how KL and Penang can do it but not JB . Infact JB should be able to do better since JB land is so near the Gold mine. Or the Sultan of JB is sleeping on the Gold mine without knowing , wakeup suddenly by Najib to uncover the gold.

 

[Grago]

Just a speculation, the talk about a 3rd link, and that there is a study being done and purportedly will be a tunnel less than 1 km. long/shorter than the Causeway. I would think it will be between the Causeway and Tuas...... Between Sarimbum and Murai Reservoir. At closes point to Johore coast line, it's less than 1KM!!!!!!! (The interactive map on Onemotoring website at "103.67217, 1.41901") On the Johore side would put it somewhere close to the Wellness Resort that Temasek/Khazanah JV is building?????? OR could it be around PUTERI HARBOUR/ KOTA ISKANDAR area????????

 

[DREAMorACTION]

For puteri harbour, I was told that they will have their own customs for ferry services directly to RCC. And apparently the plan is quite firm. That being the case, no added advantage for locating it at Kota/puteri? Moreover, it's so close to second link?

I think it should be some where nearly to causeway to ease it. One, causeway is so old Liao. The road condition is so bad now. It's not level, especially the lorry lanes, and lots of pot holes. EDL will make it worse.

When I visited a developer from eastern iskandar, one agent said likely the 3rd bridge will be proposed in pasir gudang again. It's all hearsay. Noone knows exactly but just a guess. Feasibility wise and rationally, pasir gudang should be the 3rd link but I know that idea was being killed in 2006. Nonetheless, the agent said the proposal has been reopened for study :-) it's all hearsay. Don't quote me.

Grago bro - able to check if there is any possibility from pasir gudang / tanjong puteri with 1km distance?

Just a speculation, the talk about a 3rd link, and that there is a study being done and purportedly will be a tunnel less than 1 km. long/shorter than the Causeway. I would think it will be between the Causeway and Tuas...... Between Sarimbum and Murai Reservoir. At closes point to Johore coast line, it's less than 1KM!!!!!!! (The interactive map on Onemotoring website at "103.67217, 1.41901") On the Johore side would put it somewhere close to the Wellness Resort that Temasek/Khazanah JV is building?????? OR could it be around PUTERI HARBOUR/ KOTA ISKANDAR area????????

 

[Lord Aragorn]

I golf often in leisure farm but only visit the show house after bought my house in HH.. It is about 3-5km after second link custom.. If your objective is a weekend home, leisure farm is perfect, serene and access to nature.. If objective is convenient and access to amenity, Nusa bestari, sutera, Nusa duta could be better and much cheaper.. HH, NI is nice.. Of course..and so are many other new developments..

Thanks bro, apart from HH, I haven't been to any of those that you mentioned. Will check them out.

 

[jasonjst]

Went to see Impiana at East Ledang today..

2 bedders selling at around RM600K..felt claustrophobic with the narrow hallways..based on this price, dont see much upside in the near future even with Educity/Medini etc..

if can rent for RM2500 per month...nett off RM400 (quite high) for maintenance and another RM200 for misc expenses...end up with just RM1900 per month or 3.8% pa returns...when compared to SG deposit rates, its good but realised that M'sia banks are already giving about 3.3 to 3.65% p.a for FD.....

i think maybe better to just put in M'sia FD and save all the hassle...

Bro I wont buy because it is 2 rm condo , not because rental is rm2,500 . If it is std size landed custer / terrace , even if can only rent for rm1500/= I will buy immediately ! Hence , I concluded that Nusajaya buyers dont really look at rental when making purchase of their dream house ! Didnt you buy BH cluster at 560K , can rent out easily at 2500/= ? I think if you are using your rental yield formula , you wont be buying liao . I think the magic formula for people like us is HDB rental income > than JB landed 2nd home can liao. !

 

[yonglip]

Bro I wont buy because it is 2 rm condo , not because rental is rm2,500 . If it is std size landed custer / terrace , even if can only rent for rm1500/= I will buy immediately ! Hence , I concluded that Nusajaya buyer dont really took at rental when making purchase of their dream house ! Didnt you buy BH cluster at 560K , can rent out easily at 2500/= ? I think if you are using your rental yield formula , you wont be buying liao .

Yes bro. BH is for own stay..thats why space/land is top consideration..rental yield was not a factor.

Now backside itchy looking at something to invest for rental income...when i look at impiana's location,...thought it might be something worth looking..however after seeing the insides, kinda disappointed.

cheers.