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My views on Iskandar. Please share yours.

OzRick

Alfrescian
Loyal
Leaving a property to kids or not is an individual choice. I know of a lot of parents who want to leave a freehold property for the kids. Given a choice and able to afford comfortably, I would like to own a freehold landed in Melbourne and leave it for the kid when I passed on, knowing that she has something to fall back on and don't have to bear a million dollar loan just to have a roof over her head. And why melbourne is because I think it is relatively affordable for a good size landed and has clear rule of law, much lower chance of it gone with 'a stroke of the pen'. Melbourne is also much more comfy to live in a landed because of the weather and no need to deal and worry about the mozzies.


You have a much lower chance of the assets gone with 'a stroke of the pen' in Australia. But with a breakdown in marriage, half your matrimonial assets will be gone. This is also applicable to de-facto relationship.

According to the United Nations, Australia’s divorce rate put it at 24th out of 70 countries, much higher than Singapore.

Of course, there are ways to mitigate these disasters.
 

Manhattan

Alfrescian
Loyal
Well you described me to a T :smile: Frankly, between leaving property to your child and an education I would take leaving a legacy, so many older ah pek who barely earn $2k have paid up HDB, whereas dual income no kid grads have to pay 30 yr loan for HDB?????? Really makes no sense, degree so what? Buying a property cheap should be priority.

Right, I view putting money into the right property, and as early as possible, is the right way to go. Holding a lot of cash is a depreciating asset, with 5% inflation, 50% of value is gone in 10 years, not to mention unexpected event like the ringgit. Choosing the right property is the tough part, in my opinion the right and safe property to invest now is in Melbourne. A 400 square meters freehold land in the suburb with house for less than AUD 400k, cannot even find in Iskandar. With the population to grow by 1 million by 2030, a house in Melbourne is almost a sure bet. And the rule of law is so clear in Australia, the 'stroke of the pen' thinggy is the least of our concern.
 

Manhattan

Alfrescian
Loyal
You have a much lower chance of the assets gone with 'a stroke of the pen' in Australia. But with a breakdown in marriage, half your matrimonial assets will be gone. This is also applicable to de-facto relationship.

According to the United Nations, Australia’s divorce rate put it at 24th out of 70 countries, much higher than Singapore.

Of course, there are ways to mitigate these disasters.

I sincerely hope by buying a house in Australia, our chance of having a divorce will not go up to that of Australia's. :biggrin:
 

Tekkun

Alfrescian
Loyal
Right, I view putting money into the right property, and as early as possible, is the right way to go. Holding a lot of cash is a depreciating asset, with 5% inflation, 50% of value is gone in 10 years, not to mention unexpected event like the ringgit. Choosing the right property is the tough part, in my opinion the right and safe property to invest now is in Melbourne. A 400 square meters freehold land in the suburb with house for less than AUD 400k, cannot even find in Iskandar. With the population to grow by 1 million by 2030, a house in Melbourne is almost a sure bet. And the rule of law is so clear in Australia, the 'stroke of the pen' thinggy is the least of our concern.

Make sure you know the laws first before you plonk in it.
Then again, I might buy a small unit in Melbourne if my daughter decide to study there next year.
 

Tekkun

Alfrescian
Loyal
Right, I view putting money into the right property, and as early as possible, is the right way to go. Holding a lot of cash is a depreciating asset, with 5% inflation, 50% of value is gone in 10 years, not to mention unexpected event like the ringgit. Choosing the right property is the tough part, in my opinion the right and safe property to invest now is in Melbourne. A 400 square meters freehold land in the suburb with house for less than AUD 400k, cannot even find in Iskandar. With the population to grow by 1 million by 2030, a house in Melbourne is almost a sure bet. And the rule of law is so clear in Australia, the 'stroke of the pen' thinggy is the least of our concern.

Between London and Melbourne, I am more comfortable in London. But it is a matter of personal preference.
 

Aisanbo

Alfrescian
Loyal
Seriously bro??? Is it just me or does everyone else here has $2.6m in their wallet or a few hundred thousand S$ to place in FD to generate interest income to pay for condo rental? :confused:

Recipe for JB Retirement:
  1. - One fully paid HDB flat in Sg
  2. - One fully paid JB house/condo in JB
  3. - Full minimum sum in CPF
Stay in JB property.
Rent out HDB flat for S$2.5k per month which is about RM7.5k
Get CPF Life payout from age 65yrs of $1.2k x 2 per couple or about RM7.2k.
Above steps would generate about RM15k per month ... hopefully perpetually.

For early retirement, accumulate sufficient investment portfolio to cover living expenses till age 65.

I believe the above is quite doable for an average Singaporean couple with good savings/investment habit.
 

IskandarRocks

Alfrescian
Loyal
Right, I view putting money into the right property, and as early as possible, is the right way to go. Holding a lot of cash is a depreciating asset, with 5% inflation, 50% of value is gone in 10 years, not to mention unexpected event like the ringgit. Choosing the right property is the tough part, in my opinion the right and safe property to invest now is in Melbourne. A 400 square meters freehold land in the suburb with house for less than AUD 400k, cannot even find in Iskandar. With the population to grow by 1 million by 2030, a house in Melbourne is almost a sure bet. And the rule of law is so clear in Australia, the 'stroke of the pen' thinggy is the least of our concern.

You may want to read ....

http://www.telegraph.co.uk/finance/...h-could-turn-Australia-into-a-new-Greece.html


http://www.wsj.com/articles/australia-orders-more-foreign-homeowners-to-sell-1439024595
 

Frodo

Alfrescian
Loyal
Recipe for JB Retirement:
  1. - One fully paid HDB flat in Sg
  2. - One fully paid JB house/condo in JB
  3. - Full minimum sum in CPF
Stay in JB property.
Rent out HDB flat for S$2.5k per month which is about RM7.5k
Get CPF Life payout from age 65yrs of $1.2k x 2 per couple or about RM7.2k.
Above steps would generate about RM15k per month ... hopefully perpetually.

For early retirement, accumulate sufficient investment portfolio to cover living expenses till age 65.

I believe the above is quite doable for an average Singaporean couple with good savings/investment habit.

Good recipe. Problem is I don't have the ingredients. :o
 

xebay11

Alfrescian
Loyal

Tekkun

Alfrescian
Loyal
From 100% to 75%, what is Singapore's threshold? I remember was never 100% Anyway that is the very reason why I avoid strata titled projects as far as possible.

Foreign investments is never easy. When I bought my UK properties, it is very straight forward free market. Suddenly this year the Government slapped a new tax, Capital Gains Tax of 18% effective May 2015. And that is on top of Inheritance tax of 40%. Not easy trying to make money. :(
 

Tekkun

Alfrescian
Loyal
From 100% to 75%, what is Singapore's threshold? I remember was never 100% Anyway that is the very reason why I avoid strata titled projects as far as possible.

Malaysia doesn't have this threshold strata titled law yet but my advice to many people is to avoid leasehold properties even on landed titles. This is mainly cos you need State approval before you can sell unlike freehold. And that's one way the State can control the land transfers.
 

xebay11

Alfrescian
Loyal
Foreign investments is never easy. When I bought my UK properties, it is very straight forward free market. Suddenly this year the Government slapped a new tax, Capital Gains Tax of 18% effective May 2015. And that is on top of Inheritance tax of 40%. Not easy trying to make money. :(

Yah so that is why I say SG FH property so far is best, no inheritance tax and no CGT, only SSD, which is moot if you do not flip. OZ does not have inheritance tax, so more appropriate if you want to leave your legacy behind.
 
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RedsYNWA

Alfrescian
Loyal
Yah so that is why I say SG FH property so far is best, no inheritance tax and no CGT, only SSD, which is moot if you do not flip. OZ does not have inheritance tax, so more appropriate if you want to leave your legacy behind.

I feel one should get SG FH or 999, only if you are going for landed. For SG condo investment, I feel location is far more impt than lease status, and this is often reflected in the pricing as well. My SG condo is 99 yr leasehold, easy to rent out, and more importantly, significantly lower upfront quantum to fork out compared to FH in similar area.
 

IskandarRocks

Alfrescian
Loyal
Of course, it is the right thing to do to force owners to sell if there is any abuse in obtaining property in any country, so what is the point you are trying to make? That Malaysia would not crackdown on abused property purchases bought by foreigners?

No that was not my point. But you raise an interesting question. In fact Malaysia has put proper governance in place so that it is very difficult if not impossible for foreigners to acquire properties illegally in their name. The existing rules are also very clear. The State Consent process does a thorough job of screening out 'illegal' purchases and declining the State Consent.

So, lets look at the 2nd article (WSJ) first:

“The foreign investors involved either purchased established property without Foreign Investment Review Board approval, or had approval but their circumstances changed, meaning they were breaking the rules,”


- The point here is that the rules are not necessarily very intuitive and proper governance is not necessarily in place to prevent foreigners buying 'established' properties illegaly .....

Furthermore, the article also states:

The government has been under pressure to rein in an investment-driven surge in home prices in Australia’s two biggest cities Sydney and Melbourne, amid growing criticism that wealthy Asian buyers are making the property market increasingly unaffordable.

The central bank has warned the property boom is unbalanced and potentially dangerous to a fragile economy, as economists become increasingly nervous about the possibility of the country entering a recession for the first time in 24 years.


- This tells me that there is a property bubble driven by foreign investment. The government is under a lot of pressure to 'reign in an investment-driven surge in home prices in ... Sydney and Melbourne.' So, there is a high chance that property values will decline due to double whammy - the economy entering into a recession and increased foreigner restriction, even cooling measures.

Lets look at the 1st article:

Recently revised figures for April show that the country’s trade deficit with the rest of the world ballooned to a record A$4.14bn (£2bn). That gap between the value of exports and imports is expected to increase as the value of Australia’s most important resources reaches new multi-year lows. Iron ore is now trading at around $50 per tonne, compared with a peak of around $180 per tonne achieved in 2011. Thermal coal has also suffered heavy losses, now trading at around $60 per tonne compared with around $150 per tonne four years ago.

For an economy which in 2012 depended on resources for 65pc of its total trade in goods and services these dramatic falls in prices are almost impossible to absorb without inflicting wider damage. The drop in foreign currency earnings has seen Australia forced to borrow more in order to maintain government spending.

The respected Australian economist Stephen Koukoulas recently wrote of the dangers that escalating levels of foreign debt could present for future generations. Could a prolonged period of depressed commodity prices even turn Australia into Asia’s version of Greece, with China being its banker of last resort instead of the European Union.


- The point here is if Australia enters into a long drawn recession, there will be further drops in AUD given the increasing trade deficit and more importantly this will deeply impair the spending power of Australians. And guess what, in case someone needs to sell, as foreigners, they will be at the mercy of locals, whose spending power will likely be diminished given the looming recession, as by law the rich foreigners are not allowed to buy existing properties.
 

Tekkun

Alfrescian
Loyal
If I read some articles recently, the Australian Government is trying to engineer their forex depreciation to USD 0.50 to stay competitive. Presently it is about USD 0.72. So it is not really that rosy that you can make money there.

In my opinion, property investments in Australia is more for own stay, holiday home or maybe for long term residence. To get in there and try to make money out of real estate, flip and get out is not easy. One should know the big difference between people who stay on short term against long term.
 

IskandarRocks

Alfrescian
Loyal
If I read some articles recently, the Australian Government is trying to engineer their forex depreciation to USD 0.50 to stay competitive. Presently it is about USD 0.72. So it is not really that rosy that you can make money there.

In my opinion, property investments in Australia is more for own stay, holiday home or maybe for long term residence. To get in there and try to make money out of real estate, flip and get out is not easy. One should know the big difference between people who stay on short term against long term.

Fully agree with you!

All I did was to point out the current 'Investment' and 'Economic' environment in Australia. If one falls in love with a piece of property, can hold long term, use for own stay - go for it - anywhere in the world ...
 

xebay11

Alfrescian
Loyal
If I read some articles recently, the Australian Government is trying to engineer their forex depreciation to USD 0.50 to stay competitive. Presently it is about USD 0.72. So it is not really that rosy that you can make money there.

In my opinion, property investments in Australia is more for own stay, holiday home or maybe for long term residence. To get in there and try to make money out of real estate, flip and get out is not easy. One should know the big difference between people who stay on short term against long term.

Take this as an opportunity to buy there.
 

xebay11

Alfrescian
Loyal
No that was not my point. But you raise an interesting question. In fact Malaysia has put proper governance in place so that it is very difficult if not impossible for foreigners to acquire properties illegally in their name. The existing rules are also very clear. The State Consent process does a thorough job of screening out 'illegal' purchases and declining the State Consent.

So, lets look at the 2nd article (WSJ) first:

“The foreign investors involved either purchased established property without Foreign Investment Review Board approval, or had approval but their circumstances changed, meaning they were breaking the rules,”


- The point here is that the rules are not necessarily very intuitive and proper governance is not necessarily in place to prevent foreigners buying 'established' properties illegaly .....

Furthermore, the article also states:

The government has been under pressure to rein in an investment-driven surge in home prices in Australia’s two biggest cities Sydney and Melbourne, amid growing criticism that wealthy Asian buyers are making the property market increasingly unaffordable.

The central bank has warned the property boom is unbalanced and potentially dangerous to a fragile economy, as economists become increasingly nervous about the possibility of the country entering a recession for the first time in 24 years.


- This tells me that there is a property bubble driven by foreign investment. The government is under a lot of pressure to 'reign in an investment-driven surge in home prices in ... Sydney and Melbourne.' So, there is a high chance that property values will decline due to double whammy - the economy entering into a recession and increased foreigner restriction, even cooling measures.

Lets look at the 1st article:

Recently revised figures for April show that the country’s trade deficit with the rest of the world ballooned to a record A$4.14bn (£2bn). That gap between the value of exports and imports is expected to increase as the value of Australia’s most important resources reaches new multi-year lows. Iron ore is now trading at around $50 per tonne, compared with a peak of around $180 per tonne achieved in 2011. Thermal coal has also suffered heavy losses, now trading at around $60 per tonne compared with around $150 per tonne four years ago.

For an economy which in 2012 depended on resources for 65pc of its total trade in goods and services these dramatic falls in prices are almost impossible to absorb without inflicting wider damage. The drop in foreign currency earnings has seen Australia forced to borrow more in order to maintain government spending.

The respected Australian economist Stephen Koukoulas recently wrote of the dangers that escalating levels of foreign debt could present for future generations. Could a prolonged period of depressed commodity prices even turn Australia into Asia’s version of Greece, with China being its banker of last resort instead of the European Union.


- The point here is if Australia enters into a long drawn recession, there will be further drops in AUD given the increasing trade deficit and more importantly this will deeply impair the spending power of Australians. And guess what, in case someone needs to sell, as foreigners, they will be at the mercy of locals, whose spending power will likely be diminished given the looming recession, as by law the rich foreigners are not allowed to buy existing properties.

That's why I am looking at second property there. Savy investors make money from upturn and downturn through hedging strategies, that is why I am looking at the landed house in Singapore in a funny way now.
 
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