New developments to share

[Frodo]

It is always better to buy what you see is what you get. The trend in JB will follow those in KL. Security and good neighbourhood would be the main considerations. Problem is subsale old properties do not have the proper G&G facilities. The fencing is mostly those chain link fence with oil drums cum security posts. Foreigners would look out for a purpose built security room and management (not bangla type of guards - sorry no offending anyone) brick perimeter walls, fiber optic ready type infra.
Therefore new subsale properties are better. Time to be choosy.

I agree. When you buy off plans there may be an expectation gap. But each person will have his preference.

 

[FHBH12]

Just wondering, how are the condo developers reaction to this new ruling? They can't possibly pull out becos contracts have been signed and $ has been dumped into these projects. I guess really bad scenario. RM1 mil may not be so affordable to some, but if 500K maybe still can consider.

Might cause some recently launched projects to delay or fail if they cannot sell sufficient units to cover e cost. My guess. First time encounter this.

 

[DCputeri]

This is true also in Singapore. A FH landed property in Singapore bought in the 60s would have gone up by at least 230 times depending on location. Properties are bought to be kept especially FH and in close proximity to MRT station.

Just like you, I collect them just like arts for appreciation. Good hobby.
Funnily I had never sold any property before. I still have a low cost 2 storey house 14 ft x 55 ft which I bought in 1985 for RM45k in Taman Sri muda, Shah Alam. Stayed there for 3 years and rented it out ever since for RM550 per mth.

 

[Frodo]

This is true also in Singapore. A FH landed property in Singapore bought in the 60s would have gone up by at least 230 times depending on location. Properties are bought to be kept especially FH and in close proximity to MRT station.

Unless it is solely for investment and no intention to stay at all. Then sell high when price is good for you. Can hold or dispose of at will.

 

[RedsYNWA]

Johor landed not good to sell. The odd is stack heavily in favor of landed in Johor. They will continue to appreciate.

True. Problem is what to do with the landed, if the rent is really too low. Eg RM 2k for RM800K house. That's not counting the furnishing/reno one has to put in, to make it rentable. If left empty, house condition can deteriorate v quickly 1....

 

[DCputeri]

Rental is much better in Singapore and tenants can help to pay off your mortgage and still get passive income. It is much before but much lower for the newer development as $psf has gone up so much but not rent.

Unless it is solely for investment and no intention to stay at all. Then sell high when price is good for you. Can hold or dispose of at will.

 

[RedsYNWA]

Rental is much better in Singapore and tenants can help to pay off your mortgage and still get passive income. It is much before but much lower for the newer development as $psf has gone up so much but not rent.

Yes I think the idea of land-banking in JB is gd, but the practical issue is what to do with the empty house, if the rents are really too low. In SG, it's much easier to put a down payment, while the tenant covers the monthly instalment. Currently, after deducting instalment, there's even an excess of a few hundred dollars for OCR properties.

 

[potter]

http://business.asiaone.com/news/tighter-govt-measures-vital-curb-speculation-property-market

Medini also kena too?

 

[Funniman]

Yes I think the idea of land-banking in JB is gd, but the practical issue is what to do with the empty house, if the rents are really too low. In SG, it's much easier to put a down payment, while the tenant covers the monthly instalment. Currently, after deducting instalment, there's even an excess of a few hundred dollars for OCR properties.

The ideal situation is to rent it out and collect rental for payment towards mortgage repayments.
The real situation is to rent it out and collect rental as a contribution towards mortgage repayments.
However, you get capital appreciation over time. And your rental income will increase over time while your mortgage remained the same as it is a term loan.

 

[RedsYNWA]

The ideal situation is to rent it out and collect rental for payment towards mortgage repayments.
The real situation is to rent it out and collect rental as a contribution towards mortgage repayments.
However, you get capital appreciation over time. And your rental income will increase over time while your mortgage remained the same as it is a term loan.

Oh well yes.....I will see how the JB rental market for landed is , when my other unit TOP in 6 months time. Target for RM 2.5k rental to partially cover mortgage....

 

[malpaso]

Let's c how it goes. I started off with v little intention to sell. Buying for capital appreciation n as a hobby. People buy art n watches I buy property loh.

i always believe, if one buys something for need, partial or full use, enjoyment or just wish fulfillment, and can afford, there is very little that can go wrong.

 

[RedsYNWA]

i always believe, if one buys something for need, partial or full use, enjoyment or just wish fulfillment, and can afford, there is very little that can go wrong.

I think Bro Wuqi has always advocated the same. It's just that over time, greed gets in the way, as it becomes too tempting! haha

 

[cybermad]

i always believe, if one buys something for need, partial or full use, enjoyment or just wish fulfillment, and can afford, there is very little that can go wrong.

mmm...buy basing on need or usage i can understand but based on wish ...?

 

[Funniman]

I think Bro Wuqi has always advocated the same. It's just that over time, greed gets in the way, as it becomes too tempting! haha

the key word "CAN AFFORD"

 

[malpaso]

However, you get capital appreciation over time. And your rental income will increase over time while your mortgage remained the same as it is a term loan.

exactly. rental goes up becos newer houses in the area are more ex, and new landlords need to charge higher to cover mortgage. i'm sure your 45k house in shah alam wan't rented out at 550RM in 1988 .. you probabbly raised rental 5-6 times in the past 25 years. my thinking is that as long as the rental can cover the % interest on the loan amount + expenses like maintenance fees, one is not really 'losing' money.
but interesting thing to take note. remember the desa jaya houses? 17k rm, but rental in those days were about 150RM. means it only take 10 years rental to cover back if paid in full.
now 800k for landed, rental 2k (actually a lot of older houses in subang jaya rental is even lower than that), it would take almost 40 years to repay capital if one paid cash and deduct off 2 months for maintenance / upkeep.
our next generation will need 1.5 lifetime to pay off one mortgage.
food for thought...

 

[Funniman]

exactly. rental goes up becos newer houses in the area are more ex, and new landlords need to charge higher to cover mortgage. i'm sure your 45k house in shah alam wan't rented out at 550RM in 1988 .. you probabbly raised rental 5-6 times in the past 25 years. my thinking is that as long as the rental can cover the % interest on the loan amount + expenses like maintenance fees, one is not really 'losing' money.

It was rm550 since 1997 and i never increase rent...anyway, the bank loan had long been repaid, so i just left it as it is.

 

[malpaso]

mmm...buy basing on need or usage i can understand but based on wish ...?

yeah, why not? i wish i had a house, i can afford, i go buy. Nothing wrong, right? after all, is one's hard earned money...

 

[malpaso]

It was rm550 since 1997 and i never increase rent...anyway, the bank loan had long been repaid, so i just left it as it is.

you probably have a long term tenant, too. it's win win for both parties.

 

[cybermad]

yeah, why not? i wish i had a house, i can afford, i go buy. Nothing wrong, right? after all, is one's hard earned money...

of course can but just that it does not make economic sense to buy just on wish.

 

[FHBH12]

of course can but just that it does not make economic sense to buy just on wish.

Sometimes it is a dream. There is also no economic sense to go on tour to Paris or Tokyo, but many do. You live only once.