Have you fully done your homework check on foreigners passing down Freehold property to your descendants? I heard that there may be some restrictions and complications too, I may be wrong but worth a check.
Remember, balls of steel to carry on the investment. I have retired even from property investment now and just enjoying the fruits.
Oh... I didn't know of any complication about passing down properties to descendants. I thought it's just "buying over" at worst. If that is indeed a restriction also, then really, it's driving a fast car into a wall to own an Iskandar property, doesn't matter how spacious your home is or how good the view is.
I know that Malaysia has weird rulings and as they say, "Malaysia boleh". I was in a Malaysian bank last year. One staff told me I got to pay admin fees, another said I did not have to. Nobody seemed to know the exact requirement even though it was a simple process. This is a bank we're talking about, not some night street market! That experience really surprised me. Actually it freaked me out a little as I realised how easy it is for them to do what they wish because there are no clear guidelines.
As we have seen, rules in Malaysia can change overnight, and we really can't be sure about the future. One thing I'm quite confident is, whenever they pass down new policies, foreign buyers are likely the first to be disadvantaged. They know foreigners are generally richer than their own people and definitely, they have to protect their own citizens first.
You made a very good point though about renting a place in Puteri Harbour (or other parts of Iskandar) for cheap instead of buying a property itself. One is not tied down to a liability and can come and go any time.
I hear some buyers consoling themselves by saying, if all else fails, just treat it as a "holiday home". That must be a damn expensive holiday home! You have to really work out the details. It's easy to say it but is it feasible or reasonable? How often are you going to go back there? Every weekend? Brave the jam for hours and pay toll charges? I doubt so. Ok, maybe once every few months. But is it worth it? The property is continually sucking money out of you.
It's different liking the place as a tourist and as a property owner/investor. One may like the place for a short stay but just to buy a property there and stay there for months and years, I'm not so sure.... This is something that I also recently thought about.
Say, if I like to have a break, I'd take time off and check in to a nice hotel for 2-3 nights. I wouldn't spend the rest of my life there! What can I do there? I think I will get bored. Developing the whole place will likely take decades. That's provided they have planned it well. From how Iskandar is progressing, I'm not seeing this.
What I see is, the authorities have collected lots of money from investors, overbuilt a massive amount of residential properties causing a huge oversupply they are unlikely to clear in many years, promised Iskandar will be some "urban wellness" center, eduhub, etc etc... but on the other hand, we have seen how businesses have pulled out from there. Even very big companies and owners got no choice but to change their strategies or even stop their projects indefinitely.
In addition, we have read how unstable the political system is there. Interest rates are going to rise. Many realise RM is depreciating like crazy. Some say it's a good thing. I prefer, however, to view it another way and conclude as Singaporeans, it means our properties are losing their value along the way. It's not some currency cycle here. If you look at the historical SGD vs RM currency, RM has continually declined over the years. If one has lost almost 20% to currency alone in just 2 years recently, how is he going to make back that huge amount from the property? Through capital appreciation? As good as impossible for Iskandar. And it could get worse.
When we, who have put our money in Iskandar, are seeing all these, it's reasonable to be scared. Those signs are alarm bells ringing.
As far as developing Iskandar is concerned, at least if it's the Singapore government we're talking about, I'd have faith and be confident. But it's Malaysia we're dealing here (sorry, no offence to Malaysians but the facts are there.)
Ok, just sharing as I noticed some bros or sis may not have considered carefully. Not trying to put anyone down. I'm one who have invested myself so it's not empty talk.
But I'm not sure if defaulting the loan and declare bankruptcy is the way to go. Not sure what the consequences will be. Rather, I think if you are able to cut losses now, then it's a consideration.
