New developments to share

[malpaso]

Not exactly, what I meant was if you depends on rental to pay the mortgages, and will not be able to keep up the payments if nobody rent from you, don't buy.

The risk that it cannot be rental out for a while is very real, so you must be able to hold out for a while. The MY gov will not want to see nusajaya fail, they have pumped in so much money themselves, but results will take time due to inherent inefficiency. Buy a good unit in good location as a long term investment would be the best strategy.

My views only.

Yup, my views too. It's not only the inefficiency compared to singapore. It's too much infrastructure and not enough population. The population of JB is only about a fifth of KL population. Who is going to live in all the properties being built? Also, I am really not confident of grand medini developers' track record. This would appear to be their largest residential project to date. Can they deliver in this kind of market?

 

[malpaso]

Sorry I'm new to the thread so I might have missed out something. What's the first rule again?

So DON'T BUY if we are NOT confident of RENTING out, am I right?

see above. Would you start a char kway teow business if you're not confident of getting enough customers? Its the same with rental. What I notice in your thought process is you have a backup plan of using the condo as a weekend home if you can't find a tenant. This should not even be a consideration, since a rental unit that is not being rented out is a "non performing asset".

 

[Manhattan]

Exactly, don't go for the cheapest unit available. They are cheapest for a reason, see that reason. If you want to be in better position than the rest of the units when the glut hit in 2016-17, you will want to be holding a unit that is better than the rest in terms of location, quality and view.
Imagine pinewood, HSR construction, fastrack, international schools up and running in 2017, there will be a group of expats on medium term contract work in nusajaya. There will be people renting, just will they rent from you since so much choices?

 

[potter]

Dun forget u have to compete w bumi owners as well.. :p

 

[malpaso]

Exactly, don't go for the cheapest unit available. They are cheapest for a reason, see that reason. If you want to be in better position than the rest of the units when the glut hit in 2016-17, you will want to be holding a unit that is better than the rest in terms of location, quality and view.
Imagine pinewood, HSR construction, fastrack, international schools up and running in 2017, there will be a group of expats on medium term contract work in nusajaya. There will be people renting, just will they rent from you since so much choices?

for rental, i would choose the 500++sft studio or the 700sft 2 bed, ideal rental units. the 474sft unit is too tight in my opinion. the more expensive larger units are more suitable for family own stay.

 

[Manhattan]

If can see and believe in the potential, now is the good time to buy in nusajaya. Since not many people buying now, you can take you own sweet time to choose the choice unit.

 

[UsernameX]

With the reported VEP in Jan 2015, market will likelyget worse before improvement. Wait and see

 

[freedom2005sg]

Hi, so you are saying buying a condo unit die die must rent out, or sell for it to be profitable? (Unless I'm a billionaire with plenty of cash to burn and can use it as a weekend home).

see above. Would you start a char kway teow business if you're not confident of getting enough customers? Its the same with rental. What I notice in your thought process is you have a backup plan of using the condo as a weekend home if you can't find a tenant. This should not even be a consideration, since a rental unit that is not being rented out is a "non performing asset".

 

[freedom2005sg]

Hi,
If we are targeting workers coming to Singapore to work, besides potential tenants at Educity, SiLC, Ascendas Park, Pinewood studios, which will you choose
- One Sentral (Nusa Sentral) 900+ sq ft
- Grand Medini (Medini) 474 sq ft
- Almas Suites (Puteri Harbor) 520 sq ft

Which of the 3 units above have the largest pool of potential tenants combined?

With the reported VEP in Jan 2015, market will likelyget worse before improvement. Wait and see

 

[freedom2005sg]

Grand Medini, 474 sq ft, next to GleanEagles Hospital.
850++ psf.
129 years leasehold.

Good to invest?
Able to rent out at such psf? I'm late to the party in Zone B.
Able to sell to others upon TOP date in 2018?

If can see and believe in the potential, now is the good time to buy in nusajaya. Since not many people buying now, you can take you own sweet time to choose the choice unit.

 

[freedom2005sg]

Hi,
If we are targeting workers coming to Singapore to work, besides potential tenants at Educity, SiLC, Ascendas Park, Pinewood studios, which will you choose
- One Sentral (Nusa Sentral) 900+ sq ft, 850++ psf - North East of Gelang Patah , will have shuttle bus plying between condo and Educity/Interchanges etc.
- Grand Medini (Medini) 474 sq ft, 550 psf - next to Gleneagles Hospital
- Almas Suites (Puteri Harbor) 520 sq ft, 850++ psf - Puteri Harbor

Which of the 3 units above have the largest pool of potential tenants combined?

for rental, i would choose the 500++sft studio or the 700sft 2 bed, ideal rental units. the 474sft unit is too tight in my opinion. the more expensive larger units are more suitable for family own stay.

 

[freedom2005sg]

As I am already vested in a unit in Zone A, my holding power in Zone B will be 16 months upon TOP 2018, assuming I get Grand Medini or Almas Suites.

Safe enough? Or need more holding power like up to 36 months?

Not exactly, what I meant was if you depends on rental to pay the mortgages, and will not be able to keep up the payments if nobody rent from you, don't buy.

The risk that it cannot be rental out for a while is very real, so you must be able to hold out for a while. The MY gov will not want to see nusajaya fail, they have pumped in so much money themselves, but results will take time due to inherent inefficiency. Buy a good unit in good location as a long term investment would be the best strategy.

My views only.

 

[cow138]

I just can't imagine that the state govt will still push forward with the VEP implementation.
The current tolls have already achieved its effect of traffic reduction.
Further VEP is just punitive and will do little to improve cross borders investment.

 

[malpaso]

Hi, so you are saying buying a condo unit die die must rent out, or sell for it to be profitable? (Unless I'm a billionaire with plenty of cash to burn and can use it as a weekend home).

Hi, you said you're buying for rental, right ? From your line of thinking, it seems you're very concerned about rentability. Hence, my comments.
For those who are buying a condo exclusively for rental, Yes. It must be rented out at a decent rate, otherwise it's considered "non performing". It's only logical.

You have to ask yourself the real objective why you are dead set on buying a condo in iskandar now. Is it really for rental.?

 

[malpaso]

Hi,
If we are targeting workers coming to Singapore to work, besides potential tenants at Educity, SiLC, Ascendas Park, Pinewood studios, which will you choose
- One Sentral (Nusa Sentral) 900+ sq ft, 850++ psf - North East of Gelang Patah , will have shuttle bus plying between condo and Educity/Interchanges etc.
- Grand Medini (Medini) 474 sq ft, 550 psf - next to Gleneagles Hospital
- Almas Suites (Puteri Harbor) 520 sq ft, 850++ psf - Puteri Harbor

Which of the 3 units above have the largest pool of potential tenants combined?

are you sure GM it's 550 psf? that means 474 sft is 270k RM? i thought you wrote to manhattan that 474sft is almost 400k? which is it?

considering for rental only, and if i have no other choices other than the 3 above, i would get Grand Medini if really at 550rm psf. But the bigger type B or C. lower floor (below 10 floor), not high floor. then pray the developer deliver.

however if both GM and Almas are priced the same at 850rm psf, and if i'm not worried whether i can rent it out or not, i'd get almas. cos I actually like PH. and developer is UEM and it's FH.

Now don't mind i need to ask you back questions: Almas 520 sft, it's not a duplex, right? just a normal studio? and price is 440K? units still available? thanks.

 

[Sagitarius]

Hi, so you are saying buying a condo unit die die must rent out, or sell for it to be profitable? (Unless I'm a billionaire with plenty of cash to burn and can use it as a weekend home).

Hi Freedom,

You sound inclined to buy, for rent, for own stay or for investment, whatever. I believe most buyers do because real estate appears to be the most profitable if one holds it long enough and the prevailing conditions are right when we divest. So in the end, I venture to say there could be a glut of apartments without the population and resources to support. Then it is a question of good location and the amount of rental.

With the high toll rates, targetting workers to Singapore may not be a good objective as I tend to think the potential is not there. Looking more at the neighbourhood with amenities and transportation, your apt could attract the right tenants you need.

 

[freedom]

I think if not ready to hold longterm, it is not safe to buy in case cannot sell or rent, then how?

 

[Sagitarius]

I think if not ready to hold longterm, it is not safe to buy in case cannot sell or rent, then how?

Let me share with you this property of my friend. She bought it way back in 1995 for just over RM300k, considered ex at that time when the exchange rate was much lower. The views from her apartment was good, facing a golf course, and still is. She did not use it for weekend home. She just wanted to have it rented out and get a stream of income. Tenants were few and it was a hassle to get them at the rental she wanted. So in the end, to help pay for the maintenance and sinking fund, she rented it out for around RM1k per month. And that is how she keeps the condo until today. She did not have to pay instalments for the mortgage loan as she paid for it in cash. So between keeping the money in the bank and earning some interest, she gets a little "interest" in the form of the monthly rental, albeit not much.

I have another friend who bought an apartment in Malacca for only RM60k. He said to rent it out for RM400 per month is also difficult.

I happened to pop in to look-see the Princess Cove development by R & F. I believe they already spent millions on the set up and publicity. The show gallery was good, well spent to attract buyers. According to one of the sales person, they have run out of brochures. The development is for over 3000 units of apartment and five floors of shop units. The dual-key units (3-room) faces the land side while the 4-roomers face the sea. For the current sales, they have allocated over 1000 units with prices ranging from over RM1m (for the dual-key units). As for the shop units on the ground floor, the sales person said, have all been "taken" up. The available units are on the 3rd and 2nd level, mostly meant for restaurants...I think their units cost over RM1m...

 

[cow138]

Do you know whether the commercial lots will be centrally managed by R&F ?
Or will it be own time own target type of leasing?

It'll be good if it is centrally managed.

 

[enjoylife77]

I just can't imagine that the state govt will still push forward with the VEP implementation.
The current tolls have already achieved its effect of traffic reduction.
Further VEP is just punitive and will do little to improve cross borders investment.

Because currently Sg imposed VEP(S$35/day) on Malaysia car so Malaysia must also MATCH for Sg car to share the pain. I think it is fair.