Property News

[winners]

LOL! I am pretty much happy to live out the rest of my days in JB. Keys to second house still 2 years or more away. While I look forward to that being completed, I am also not in a hurry since a longer lead time is good for me to pay down current debts. My kids still not weddable yet…wait a few more years lah! LOL! Anyway, to reply on the earlier point, I was saying that if really is stuck, it would have been better to be stuck when with property at below RM1 million, compared to being stuck with property above RM1 million. Point is lesser loan burden lor, from my peasant perspective. Consider me naïve, but I believe things will look up for JB in the next few years.

Wah Frodo, don't be so humble to call yourself peasant leh. I don't even have a 2nd property in JB. You are at least ahead of me.

 

[kawan2sgmy]

Unbelievable right? And it's happening right here in Spore, and so many people rushing in to buy! Another project in District 3, base price start from $1600 psf, but a bit more atas type. Inflation, inflation, inflation! Our next generation how to buy?

2 bedder for $1.2m, 800sqft? Wow….considering that is about RM3.3 million, that is more than enough to pay off my two JB properties and still leave a cool RM1.8 million for drinking kopi the rest of my days! Haiz….other than holding on to my HDB for dear life (unless can sell for $1 million!:p) there is simply no way for me to buy any property in Singapore. Good for you guys to have more options

 

[mpan12]

By the way, it must be reminded that Land Office and State Administration are totally 2 different thing. What happen to the RM1m or RM2m Foreign Investment requirement is a State Admin matter. It is separate from the requirements of the land office though they may intertwined in decision making.

Thanks for the explanation on leasehold vs freehold.

For leasehold, I suppose once the SPA is done up, the rest should be smooth-sailing. Except maybe for selling, it may take some time for the state authorities to process. Otherwise, I don't see any restrictions, unless one wants to hold on to the property for ages. I'm not familiar with what the Msian govt can do though. They can change plans abruptly.

Unless Msians have the psychology to avoid leasehold at all costs.

 

[winners]

So for the JB condos you mentioned now on auction sale, so fast the owners default on payment.... Actually, I don't think the loan is difficult to pay off. Maybe the owners find it pointless to continue holding on to the condos which are not giving them the returns they expect.

You won't know the true reasons for the owner defaulting the loans. It could be these are property flippers and speculators who are holding several properties. How to tahan in this current situation, unless you are a Datuk?

 

[Frodo]

Wah Frodo, don't be so humble to call yourself peasant leh. I don't even have a 2nd property in JB. You are at least ahead of me.

Bro, I’m not faking it when I say I am peasant. My family practically live from hand to mouth! Loans to clear, bills to pay, children’s education and ECA classes, living expenses…means monthly salary and HDB rental when come in also quickly go out. My JB properties nothing much to crow about one lah…. as both units together not even RM1.5m. Who knows your one unit already cost more than my two! But I am not complaining lah…considering I like that also can have two properties in JB. Miracle liao lor. I like to tell my friends, if I can do it with my meagre means, for them would be sup sup water to get better and more JB properties.

 

[mpan12]

If the bank seize the property and auction it off, the owner will lose all his money in the down payment, from all installment paid and maybe money for the renovation / fixtures too, so owner is not getting away too easily, he just did a quick cut loss and exit the market.
However, there are too many defaults and banks cannot find buyers for their seizure, then you'll see another sub-prime crisis JB style.

I think that's why Maybank sounded the alarm 2 years ago. There were so many rushing in to buy. Developers sell at high prices, there were many buyers. They up the price some more, more went in to buy! It was a herd mentality.

When more of the condos are ready but with difficulty to find good rental and no buyers, we may likely see more bank auctions.

 

[Frodo]

Unbelievable right? And it's happening right here in Spore, and so many people rushing in to buy! Another project in District 3, base price start from $1600 psf, but a bit more atas type. Inflation, inflation, inflation! Our next generation how to buy?

It’s not just unbelievable, it’s un..un..un..un… unbelievable! Unless my girls marry rich man (like xebay) not possible to buy any private property at all in SG. At most is BTO, but these are also rising in prices while falling in sizes.

 

[Manhattan]

Thanks for the explanation on leasehold vs freehold.

For leasehold, I suppose once the SPA is done up, the rest should be smooth-sailing. Except maybe for selling, it may take some time for the state authorities to process. Otherwise, I don't see any restrictions, unless one wants to hold on to the property for ages. I'm not familiar with what the Msian govt can do though. They can change plans abruptly.

Unless Msians have the psychology to avoid leasehold at all costs.

I am not sure how true that Malaysians will avoid leasehold entirely. I heard the medini shophouses and landed are mainly Malaysian buyers as they think it's good location and relatively inexpensive compared to KL. Not sure what's the thoughts on those Malaysian buyers of leasehold landed in medini. Usually leasehold is 20 to 30% cheaper compared to similar quality and location freehold.

 

[winners]

Bro, I’m not faking it when I say I am peasant. My family practically live from hand to mouth! Loans to clear, bills to pay, children’s education and ECA classes, living expenses…means monthly salary and HDB rental when come in also quickly go out. My JB properties nothing much to crow about one lah…. as both units together not even RM1.5m. Who knows your one unit already cost more than my two! But I am not complaining lah…considering I like that also can have two properties in JB. Miracle liao lor. I like to tell my friends, if I can do it with my meagre means, for them would be sup sup water to get better and more JB properties.

Hey, at least you can afford RM1.5m. Mine was only RM290k (+ RM10k state levy) when I bought in 2009. At that time, the limit was RM350k, so I had to mark up and pay extra for the stamp duty. Shh.... don't tell anyone.

 

[mpan12]

You won't know the true reasons for the owner defaulting the loans. It could be these are property flippers and speculators who are holding several properties. How to tahan in this current situation, unless you are a Datuk?

Yes true... I always feel holding power shouldn't be too difficult since this is Msian properties and they are relatively affordable compared to SG ones. Investors should also have done their calculations in the past.

It's the uncertainty of the future that makes one have anxiety. Msian rules may suddenly change for foreigner buyers. RM currency may be devalued further. This down market for condos could last for many years with new supplies coming in. It's not a nice feeling to see money slipping away negatively every month from the bank loan.

 

[winners]

It’s not just unbelievable, it’s un..un..un..un… unbelievable! Unless my girls marry rich man (like xebay) not possible to buy any private property at all in SG. At most is BTO, but these are also rising in prices while falling in sizes.

In Singapore, property prices will never collapse because the government will know when to "release" the curbs. It is also detrimental to the government if the assets of the ordinary Singaporeans will diminish. Second, in land scarce Singapore, where to find forever land to continue building, apart from building taller and taller?

 

[Tekkun]

I am not sure how true that Malaysians will avoid leasehold entirely. I heard the medini shophouses and landed are mainly Malaysian buyers as they think it's good location and relatively inexpensive compared to KL. Not sure what's the thoughts on those Malaysian buyers of leasehold landed in medini. Usually leasehold is 20 to 30% cheaper compared to similar quality and location freehold.

Medini leasehold (I called them freelease) and Stateland leasehold are different. Medini shophouses (Sunsuria) is very limited as most land in Medini are slotted for highend condos. Many Malaysians will still buy leasehold land and that is not a problem at all. Only I prefer to buy freehold given a direct comparison. But in the end of the day, we must be happy where we place our chips. And when there's a downturn, every little brownie point count.

 

[gooddebt]

Credit cards and Banks do not have borders as far as credit risks is concerned. Next step is bankruptcy. You can't even pass immigration as the system is linked.

I dunno whether will the banks in MY broadcast to lets say banks in China/ SG abt credit default ? If so, then good as chances of people abandoning properties are lesser...but I thot there was what happened in Dubai where foreigners just ran off back to their countries?

 

[Frodo]

Hey, at least you can afford RM1.5m. Mine was only RM290k (+ RM10k state levy) when I bought in 2009. At that time, the limit was RM350k, so I had to mark up and pay extra for the stamp duty. Shh.... don't tell anyone.

Wah lau! You kio tio liao! I won’t complain to buy house at RM350K and wish I could have bought earlier…but how would I know that one day JB would be my home, right? LOL! I even tried looking for a house at close to RM500K as possible but wife don’t like them (Tekkun would understand this).

 

[Tekkun]

Wah lau! You kio tio liao! I won’t complain to buy house at RM350K and wish I could have bought earlier…but how would I know that one day JB would be my home, right? LOL! I even tried looking for a house at close to RM500K as possible but wife don’t like them (Tekkun would understand this).

Wife always has this saying. Either you buy the best you can afford or you don't buy at all especially those half past six.
I dunno why we men suffer the same fate.

 

[xebay11]

Thanks for your kind thoughts!
You have raised valid points, a very observant property investor indeed!
Current yield of LH properties is pretty low, not sure about future yields and future capital appreciation.
The Poiz at Potong Pasir, a mixed development, is asking abt $1400 psf base price; so a 2 bedder wld likely cost abt 1.2mil.
But how to live in a 800-odd sf for a family with children! At most it’s liveable for 2 adults. Our country is fast becoming like HK.
No wonder our govt says it’s still not time to take away the cooling measures. Yes the ABSD is another hurdle!

Btw, what is your take on those very old LH properties like Mandarin Gardens & Laguna Park, where they sit on large plots of valuable land with full sea view - your favoured million dollar view!

Do not buy Mandarin Gardens as it is now over run by a certain race and they are tearing the place apart, they want to make cricket field, kick out Thai Pan restaurant and put Indian restaurant, hold all the Hindi festivals, i mean no race should dominate an estate.

Laguna also a place for losers and greedy owners, lots of talk of en bloc but that is a good ten years or more and i think the place is 30 plus years old, not many years left, redevelopment charges and lease renewal fees would be too high for developer to sell in this deteriorating market. So if you buy, you would probably have to live out the lease. No hope to sell away.

Also if you study my analysis of the Singapore property market, the area which is really bucking the trend to falling property prices is well located HDB, especially those in the city, they are the brightest stars and bucking the trend, try and get one and at least will be more livable and affordable to the cramped condos.

 

[kawan2sgmy]

Yes those places seem to be dominated by them, including Makena area.
The future looks too uncertain if buy into these places, although it was quite sought after in the past.
Asking price is not cheap, but has come down somewhat, it’s like paying for 60yrs LH + run down.
Better to look elsewhere and make better choices. Thanks for the highlight into well located HDBs, will definitely take this into consideration when hunting for the next property.
Thanks again for your sharing!

Do not buy Mandarin Gardens as it is now over run by a certain race and they are tearing the place apart, they want to make cricket field, kick out Thai Pan restaurant and put Indian restaurant, hold all the Hindi festivals, i mean no race should dominate an estate.

Laguna also a place for losers and greedy owners, lots of talk of en bloc but that is a good ten years or more and i think the place is 30 plus years old, not many years left, redevelopment charges and lease renewal fees would be too high for developer to sell in this deteriorating market. So if you buy, you would probably have to live out the lease. No hope to sell away.

Also if you study my analysis of the Singapore property market, the area which is really bucking the trend to falling property prices is well located HDB, especially those in the city, they are the brightest stars and bucking the trend, try and get one and at least will be more livable and affordable to the cramped condos.

 

[winners]

Wah lau! You kio tio liao! I won’t complain to buy house at RM350K and wish I could have bought earlier…but how would I know that one day JB would be my home, right? LOL! I even tried looking for a house at close to RM500K as possible but wife don’t like them (Tekkun would understand this).

Wife always has this saying. Either you buy the best you can afford or you don't buy at all especially those half past six.
I dunno why we men suffer the same fate.

In my case, I have the final say. Prior 2009, we had been going on house hunting in JB and seen at least 30 units, from condos to landed, from resale to new ones, until my wife complained to me: "Don't see anymore, every time see already don't buy." lol.

I remembered visiting the Horizon Hills sales office and was pissed off by their sales staff. When inquiring to view their show house, instead of bringing us to the unit, they just directed us by saying: "You just turn left and walk straight and turn right again. The show house will be to your right."

The Setia Indah and Setia Tropika sales staff were much better and drove us around their show village to show us a few units. Unfortunately, we didn't take up because of the distance from the CIQ.

We'd almost committed on Austin as the quality was quite good, but again the distance. We also went to see Mah Sing, but the quality was even worse than the HDB.

 

[winners]

Do not buy Mandarin Gardens as it is now over run by a certain race and they are tearing the place apart, they want to make cricket field, kick out Thai Pan restaurant and put Indian restaurant, hold all the Hindi festivals, i mean no race should dominate an estate.

This I concur. I was there once on the late weekend afternoon for a dinner with my sister who lives in the Katong area. Surprisingly, between 5pm and 6pm, the whole field was swarmed by their only race. But after about 6.30pm, all of them will go back together and the field became empty again.

Laguna also a place for losers and greedy owners, lots of talk of en bloc but that is a good ten years or more and i think the place is 30 plus years old, not many years left, redevelopment charges and lease renewal fees would be too high for developer to sell in this deteriorating market. So if you buy, you would probably have to live out the lease. No hope to sell away.

This development had failed in their enbloc in at least 3 times, and yes, due to some greedy owners. With the current downtrend, I doubt there's light at the end of the tunnel. The same goes to the nearby Neptune Court. In this case, they couldn't get the approval from the Ministry of Finance to enbloc because this development was originally sold only to civil servants.

Also if you study my analysis of the Singapore property market, the area which is really bucking the trend to falling property prices is well located HDB, especially those in the city, they are the brightest stars and bucking the trend, try and get one and at least will be more livable and affordable to the cramped condos.

................

 

[Tekkun]

While we are all focussed on Johore RM1m foreigner cap, Melaka is pushing its property to Singaporeans with potential HSR stop.
The foreigner limit in Melaka is only RM500k. Interesting.