Property News

[PuteriWorld]

Hi SGcount,

I really do not know your cash-flow but let me tell you a few confirmed conclusions I have.

1) You sell. You lose and that's for sure
2) You keep it but never rent out. Its yours forever even if the value goes down to zero which is not possible. Its freehold I presume. And there could be chances you use it in the future.
3) You leave it for your offsprings with chances that prices might go back to SPA price.

I am saying all these assuming that your cash flow is strong and you are strong financially. But if u need to borrow from Ah loongs to pay for instalments, you have to sell it

I got friends who pay RM 888 to own a unit and guess what, despite my repeating nagging they went on to pay RM 2664 to own 3 units in the middle of nowhere. Now they are crying their way to the bank.

Even before Iskandar prices appreciate, I have been stopping fellow friends from buying up these properties and condos in places such as Bukit Indah, Nusa Duta, Perling, Ecoworld etc UNLESS ITS FOR OWN STAY. Seem that many went on to gamble and lost

I see.. Thanks for sharing.

I think many Singaporeans took for granted the property market in Iskandar is like Singapore's. I assumed that to some extent also previously.

When people hear I am considering to let go, they said Why you so greedy and want to flip? I said, No, no.... Nobody wants to buy even if I sell 30-40% cheaper. I am actually trying to cut losses.

 

[PuteriWorld]

"To pay say S$300,000 for a modest size Iskandar property and use it as a "holiday home" is certainly very expensive! Even if you splurge S$250 every week to stay in a 3 star hotel in Singapore, you can enjoy 25 long years of relaxing "staycation" to equal the cost of buying an Iskandar property!"

Hi Sgount, allow me to give my opinions on what was written by you. The fact is that after 25 long years of relaxing "staycation" of S$300,000 in a Spore hotel, you get 0 cent after 25 years in Singapore.

However in the case of your OWN property ( be it BTO, EC, Iskandar properties etc ), after 25 years you have the S$300,000 to your ( assuming no capital appreciation ) or $100,000 ( if the property depreciates like shit ).

And in the 2nd case, you can stay in the house for another 25 years FOC.

That's the different of renting and buying. I see many businessmen who went bust in the later stage of their business because they don't believe in buying or rather they prefer to use that initial cash outlay to splurge on BMWs or buying rolex or go Nightclubs.

 

[Frodo]

Hi SGcount,

I really do not know your cash-flow but let me tell you a few confirmed conclusions I have.

1) You sell. You lose and that's for sure
2) You keep it but never rent out. Its yours forever even if the value goes down to zero which is not possible. Its freehold I presume. And there could be chances you use it in the future.
3) You leave it for your offsprings with chances that prices might go back to SPA price.

I am saying all these assuming that your cash flow is strong and you are strong financially. But if u need to borrow from Ah loongs to pay for instalments, you have to sell it

I got friends who pay RM 888 to own a unit and guess what, despite my repeating nagging they went on to pay RM 2664 to own 3 units in the middle of nowhere. Now they are crying their way to the bank.

Even before Iskandar prices appreciate, I have been stopping fellow friends from buying up these properties and condos in places such as Bukit Indah, Nusa Duta, Perling, Ecoworld etc UNLESS ITS FOR OWN STAY. Seem that many went on to gamble and lost

OMG, you mean RM888 booking fee?

 

[sgcount]

Frodo: Thanks for the home schooling article.

Iskandar007: Yes, I've already included all the other extra fees I have to pay besides losing the deposit paid so far. Everything totals up to >S$50k to be lost. If it's just booking fee I'm losing, I definitely won't be so worried now... I will let it go immediately.

 

[sgcount]

Thanks for the further useful points. Yes, good advice. It's up to me now to weigh the pros and cons and my options.

I can still service the loan and won't have to borrow from Ah Longs. Not that serious although I am not wealthy. But of course, my capital will be reduced and I won't have that much left for bigger investments to consider next time.

I haven't heard of the RM888 downpayment before. So your friends now how? All the properties they bought cannot rent out and can't find buyers?

Why do you say Bukit Indah shouldn't buy? Recently, I got this local agent who told me the oversupply issue is in the old JB city. And also Danga Bay and Medini as there are hardly any commercial activities in those areas. Instead, he recommended me to look at Bukit Indah, saying there are established amenities and big shopping centres. Got direct bus from Singapore also. Much easier to find ready tenants. And he said once complete, can consider selling to non-Malaysians at RM1 million to make profits. Sound so nice but I don't trust the words of all these agents any more.

Hi SGcount,

I really do not know your cash-flow but let me tell you a few confirmed conclusions I have.

1) You sell. You lose and that's for sure
2) You keep it but never rent out. Its yours forever even if the value goes down to zero which is not possible. Its freehold I presume. And there could be chances you use it in the future.
3) You leave it for your offsprings with chances that prices might go back to SPA price.

I am saying all these assuming that your cash flow is strong and you are strong financially. But if u need to borrow from Ah loongs to pay for instalments, you have to sell it

I got friends who pay RM 888 to own a unit and guess what, despite my repeating nagging they went on to pay RM 2664 to own 3 units in the middle of nowhere. Now they are crying their way to the bank.

Even before Iskandar prices appreciate, I have been stopping fellow friends from buying up these properties and condos in places such as Bukit Indah, Nusa Duta, Perling, Ecoworld etc UNLESS ITS FOR OWN STAY. Seem that many went on to gamble and lost

 

[Frodo]

Thanks for the further useful points. Yes, good advice. It's up to me now to weigh the pros and cons and my options.

I can still service the loan and won't have to borrow from Ah Longs. Not that serious although I am not wealthy. But of course, my capital will be reduced and I won't have that much left for bigger investments to consider next time.

I haven't heard of the RM888 downpayment before. So your friends now how? All the properties they bought cannot rent out and can't find buyers?

Why do you say Bukit Indah shouldn't buy? Recently, I got this local agent who told me the oversupply issue is in the old JB city. And also Danga Bay and Medini as there are hardly any commercial activities in those areas. Instead, he recommended me to look at Bukit Indah, saying there are established amenities and big shopping centres. Got direct bus from Singapore also. Much easier to find ready tenants. And he said once complete, can consider selling to non-Malaysians at RM1 million to make profits. Sound so nice but I don't trust the words of all these agents any more.

The traffic at Nusa Bestari is notsa best there is!

 

[PuteriWorld]

I wont ask a hawker if his food is delicious.
I also wont ask a hawker if his neighbours food is lousy

 

[Frodo]

I wont ask a hawker if his food is delicious.
I also wont ask a hawker if his neighbours food is lousy

LOL! My wife always ask the waiter whether such and such a dish on the menu is nice to eat. I roll eyes every time.

 

[PuteriWorld]

There are developments which do some tweaking to the SPA to allow you to get rebates or cashback etc. This I wont dwell into in a public forum as it has its pros and cons but in this ailing market the investors all got burnt ( including the agents who snap up a few units )

Thanks for the further useful points. Yes, good advice. It's up to me now to weigh the pros and cons and my options.

I can still service the loan and won't have to borrow from Ah Longs. Not that serious although I am not wealthy. But of course, my capital will be reduced and I won't have that much left for bigger investments to consider next time.

I haven't heard of the RM888 downpayment before. So your friends now how? All the properties they bought cannot rent out and can't find buyers?

Why do you say Bukit Indah shouldn't buy? Recently, I got this local agent who told me the oversupply issue is in the old JB city. And also Danga Bay and Medini as there are hardly any commercial activities in those areas. Instead, he recommended me to look at Bukit Indah, saying there are established amenities and big shopping centres. Got direct bus from Singapore also. Much easier to find ready tenants. And he said once complete, can consider selling to non-Malaysians at RM1 million to make profits. Sound so nice but I don't trust the words of all these agents any more.

 

[PuteriWorld]

After much time doing own research in properties in Malaysia ( commercial or residential and even land banking ), I realize the worse rubbish are spoken by PROPERTY AGENTS & BANKERS such as Analysts who got Masters from LSE or Harvard. I rather toss a coin to decide than to hear their judgement.

There are always two banes I believe in. First is rich parents, 2nd is too much education



Sorry I know there are agents and bankers here but you cant stop me from telling the truth.

 

[Frodo]

There are developments which do some tweaking to the SPA to allow you to get rebates or cashback etc. This I wont dwell into in a public forum as it has its pros and cons but in this ailing market the investors all got burnt ( including the agents who snap up a few units )

KSL Residences@Daya offered that tweak in the form of 20% rebate which allowed me not to pay anything (with 80% bank loan) other than the refundable booking fee until 2018 when it is completed. So that was a pro for me, otherwise also no go.:p

 

[sgcount]

Yup, property agents are the worst to listen to. They are just sales people no different from the salesmen in Sim Lim Sq or durian sellers.

The agent that sold me the Iskandar unit sounded so convincing. I thought he was an expert analyst in Malaysian and other properties in general. Was impressed initially. Until I realized along the way the guy knows nuts. He just wants commissions.

Here's a food for thought article on Iskandar I've just read:
http://themiddleground.sg/2015/06/25/way-cow-iskandar-teaches-us-herd-investing/

 

[RedsYNWA]

Yup, property agents are the worst to listen to. They are just sales people no different from the salesmen in Sim Lim Sq or durian sellers.

The agent that sold me the Iskandar unit sounded so convincing. I thought he was an expert analyst in Malaysian and other properties in general. Was impressed initially. Until I realized along the way the guy knows nuts. He just wants commissions.

Here's a food for thought article on Iskandar I've just read:
http://themiddleground.sg/2015/06/25/way-cow-iskandar-teaches-us-herd-investing/

Just wondering Bro....... You seem to be able to uncover a lot of articles about Iskandar, but how come you never read them before investing, which was surely the most critical time to research about them, and not now?

I am about to start the process of putting my new terrace for rent pretty soon. Will let you guys know how it goes then......

 

[Frodo]

Just wondering Bro....... You seem to be able to uncover a lot of articles about Iskandar, but how come you never read them before investing, which was surely the most critical time to research about them, and not now?

I am about to start the process of putting my new terrace for rent pretty soon. Will let you guys know how it goes then......

Sometimes when caught in the hype will plunge before looking. Many times humans are like that. That's what road shows do.

 

[myrsing]

Sometimes when caught in the hype will plunge before looking. Many times humans are like that. That's what road shows do.

Very true. Just when i bought my terrace house at Nusa idaman. There wasnt any advertisements in the papers. The staffs from Uem just phoned those who had failed to secure their properties in their earlier precinct. When i went to their office on the 1st day of "walk-in" selection, everyone who was there were so kiasu and kiasi. All placed their booking fees. Within 3 days, all sold out. Except for some semi d. Cos of those kiasi one, i failed to book a corner lot. But still i am happy securing one. No regret till today cos i bought it for weekend retreat and retirement home.

 

[sgcount]

Just wondering Bro....... You seem to be able to uncover a lot of articles about Iskandar, but how come you never read them before investing, which was surely the most critical time to research about them, and not now?

I am about to start the process of putting my new terrace for rent pretty soon. Will let you guys know how it goes then......

Ok please update us on your rental. Thanks.

About your question. Back in 2013, I didn't have any good adviser on Iskandar investment. Mainly trusted this agent whom I later realize wasn't giving me accurate info. I had some cash on hand, tried to invest in SG, but with all the cooling measures, it was impossible. So when the Iskandar hype came up, I was drawn into it. I did do my research then. But it was not thorough.

In 2013, you hardly got any bad reviews on Iskandar. Only the very astute/intelligent ones would analyze and conclude that it is not wise to invest in Iskandar. One well-known property guy in Singapore (won't mention his name) even taunted and laughed at those who have bought Iskandar properties. He said he had advised many in his audience way back in 2012 never to "touch" Iskandar because it will lose money but they didn't listen. So now he's having the last laugh. He even made an unkind remark recently that Iskandar will be flooded soon... with the tears of investors and that it's a good time to be in the ambulance business because some will jump down from their high-rise condos. (Well, for those of you who thinks the sentence sounds familiar, you know who I am referring to!)

In 2013, I did have another agent warning me about places like Medini but I ignored him. I thought how could it be bad when almost every report was saying it's going to boom? I think Straits Times even had the headlines "Iskandar is investor's darling". Like some Singaporeans, I was the typical stupid one in 2013 who listened and trusted quite easily the agents and adopted the "herd mentality". The analysis was just not deep enough for me.

Only now I began to wake up (too late) and that explains why I read more and talk to people, like those here and elsewhere. It's too late but still, better to learn now than never, be it for damage control of the present Iskandar investment or other future ones, if there are any.

 

[Zelphon]

In 2013, I did have another agent warning me about places like Medini but I ignored him. I thought how could it be bad when almost every report was saying it's going to boom? I think Straits Times even had the headlines "Iskandar is investor's darling". Like some Singaporeans, I was the typical stupid one in 2013 who listened and trusted quite easily the agents and adopted the "herd mentality". The analysis was just not deep enough for me.

Only now I began to wake up (too late) and that explains why I read more and talk to people, like those here and elsewhere. It's too late but still, better to learn now than never, be it for damage control of the present Iskandar investment or other future ones, if there are any.

So I guess your purchase in Medini is LEASEHOLD??

I bought a 2 BR unit at R&F in August 2014..
I am not fretting over it because my purpose for buying it is long term retirement and viable exit strategy..
Now, I probably lose close to SGD 40k due to forex reasons as I converted a bulk of savings into ringgit at 2.55..
Heard those who bought later enjoys higher discounts too...

True, there is masssive oversupply in Iskandar...
Especially where the China Developers are..
Still I still believe in the long term prospects of Johor as a viable exit strategy..

In all investments, there are risks..
It may turn out to be a poor decision today but who knows about the future..

 

[FHBH12]

CapitaLand still positive on Iskandar
Jun 29, 2015

Despite the threat of an oversupply of homes in Iskandar Malaysia, property heavyweight CapitaLand remains optimistic about the potential of the region.

The Singapore-based developer is moving forward with plans to build a premier waterfront residential community on A2 Island in Danga Bay, comprising high-rise apartments, landed homes and other supporting amenities.

A statement released by the company said, “CapitaLand takes a long-term view of this project and is confident of the long-term prospects of Iskandar Malaysia. The development will be paced and executed in phases over a period of 10 to 12 years according to market conditions, as originally envisaged.”

It is understood that conditions on the acquisition of land parcels on A2 Island have been met by Hallmark Connection Sdn Bhd (HCSB) under a sale and purchase agreement (SPA) between HCSB and Iskandar Waterfront Sdn Bhd (IWSB).

CapitaLand subsidiary CLM Isle Investment owns 51 percent of HCSB, while IWSB and Temasek own 40 percent and 9.0 percent of HCSB respectively.

During a parliamentary session in May 2015, Minister for Culture, Community and Youth Lawrence Wong warned of a future housing glut in Iskandar that could devalue homes.

“Based on data from Malaysia’s National Property Information Centre (NAPIC), there are around 336,000 new private residential units in the pipeline — more than the total number of private homes in Singapore,” said Wong.

He added that buyers have become more cautious with surveys showing the number of Malaysian properties purchased through local property agencies has plunged from 2,609 units in 2013 to 838 last year.

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email [email protected]

http://www.propertyguru.com.sg/prop...6/99940/capitaland-still-positive-on-iskandar

 

[PuteriWorld]

To be frank, all these talks about taunting and laughing at those who bought Iskandar properties are rubbish as well. Those who bought during those dull period ( when coastal highway and LEGOLAND are all palm trees & Iskandar got nothing to show ) are laughing their way to the banks and there are investors who earn millions of Sing dollars even after converting back to Sing dollars.

The fact that the market is down does not mean that it will be down forever. During Mah Bow tan era, there was oversupply of HDBs and after a while, there was great demand and prices shoot sky high

Ok please update us on your rental. Thanks.

About your question. Back in 2013, I didn't have any good adviser on Iskandar investment. Mainly trusted this agent whom I later realize wasn't giving me accurate info. I had some cash on hand, tried to invest in SG, but with all the cooling measures, it was impossible. So when the Iskandar hype came up, I was drawn into it. I did do my research then. But it was not thorough.

In 2013, you hardly got any bad reviews on Iskandar. Only the very astute/intelligent ones would analyze and conclude that it is not wise to invest in Iskandar. One well-known property guy in Singapore (won't mention his name) even taunted and laughed at those who have bought Iskandar properties. He said he had advised many in his audience way back in 2012 never to "touch" Iskandar because it will lose money but they didn't listen. So now he's having the last laugh. He even made an unkind remark recently that Iskandar will be flooded soon... with the tears of investors and that it's a good time to be in the ambulance business because some will jump down from their high-rise condos. (Well, for those of you who thinks the sentence sounds familiar, you know who I am referring to!)

In 2013, I did have another agent warning me about places like Medini but I ignored him. I thought how could it be bad when almost every report was saying it's going to boom? I think Straits Times even had the headlines "Iskandar is investor's darling". Like some Singaporeans, I was the typical stupid one in 2013 who listened and trusted quite easily the agents and adopted the "herd mentality". The analysis was just not deep enough for me.

Only now I began to wake up (too late) and that explains why I read more and talk to people, like those here and elsewhere. It's too late but still, better to learn now than never, be it for damage control of the present Iskandar investment or other future ones, if there are any.

 

[xebay11]

To be frank, all these talks about taunting and laughing at those who bought Iskandar properties are rubbish as well. Those who bought during those dull period ( when coastal highway and LEGOLAND are all palm trees & Iskandar got nothing to show ) are laughing their way to the banks and there are investors who earn millions of Sing dollars even after converting back to Sing dollars.

The fact that the market is down does not mean that it will be down forever. During Mah Bow tan era, there was oversupply of HDBs and after a while, there was great demand and prices shoot sky high

You cannot take what you learn in Singapore and transplant it to Malaysia, Singapore has little land, so oversupply can be absorbed after a while, Malaysia has lots of land and yes demand may eventually absorb oversupply but in how many years? Can you wait?