That's why I always say rent and if want "holiday home" just stay hotel every now and then, dun care whether people say rent home is like prostitute versus wife, but to me, if you are Singaporean, Malaysia can never be your real home anyway.
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Rental and Resale (All about Rental and Resale prices in Iskandar)
- Thread starter Investor
- Start date
That's why I always say rent and if want "holiday home" just stay hotel every now and then, dun care whether people say rent home is like prostitute versus wife, but to me, if you are Singaporean, Malaysia can never be your real home anyway.
Please lah, rich people don't go for cheap things. If they can afford they won't buy Iskandar. All my rich PRC kakis own a few super cars in the US, why they don't just buy Toyota Camry? Go figure.
You can't uncook a boiled egg.
Having driven past Country Garden and seeing its construction in progress now, I definitely don't like the very close proximity between the blocks. The Chink developer surely utilizes the maximum plot ratio and using all the available land area into their layout.
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I guess it is a matter of how malaysia would make Malaysia meet the needs of investors.
There are many ways to make your money to work hard for you in SG, just choose something you know and what kind of returns you'll expect and comfortable with - higher returns always equals higher risks.
You have just invested into something you are totally unfamiliar about but now all these realization comes too late.
Remember, any investment that you cannot liquidate anytime you wanted to is not exactly a good investment.
Ya lor... iskandar really only attract those PRC that not eligible or rich enuf to go sg or western countries. Still, this group is massive in number compare to atas prc.
Drew out an interesting lesson, esp useful for any greenfield development. Dont buy if your surrounding are all investors.
The way i see medini or ph is typical boom n bust cycle. First wave investors rush in at high price, too exp (but they do not feel so because their perception are distorted by home market ppty value), no real users willing to buy there. Since no users buying there, renting make no much sense as it pretty much ghost town. Then everyone want to be out to the point, willing user will view it attractive to buy n stay there for their own use. Second wave, after much discounted value ppty, are supported by real demand, unlike first wave purely speculative, not for own use investors. Second wave is much safer supported by real users n cheaper to buy in. But we need to appreciate first wave buyers as it bring in the hot money to bring development to the place at much higher standard...and sadly fatten developers and being take advantage by second wave buyers. This happen in many cities, and the one i can think of is melbourne ppty market.
Anyway, your only hope to minimize your losses is to wait for rts news...n if the line run pass your place, you may end up in profit...wish u luck.
Not exactly too late. Cut losses now. Painful but rather than bleed to death years later by holding on to a depreciating liability.
Iskandar condos are not meant for investment. High risk, high uncertainty. It's for one to stay there for good. The prices are all too high with little hope of liquidity. Oversupply with lack of tenants and local buyers.
The authorities only want foreigners' money to be parked there.
Iskandar is not for those pure investor, where you have no interest to stay that, just buy and hope to flip at VP. It is for those who liked the concept of wide open spaces and quiet neighbourhood and think that they deserved to have a peaceful and comfortable retirement at a place of their choice. The cost is still way affordable for most medium class couples in the late 40s. 1 year combined salary to buy a quality condo like imperia and a bus ride from homeland and can even see SG from balcony? It's probably a dream retirement for some. Not many retirees want to stay too far from extended family and healthcare.
Me think there won't be 2nd wave buyers any time soon. The place (Medini) is dead. From what I see, the authorities are only interested in collecting money by selling the land. There is no systematic plan to develop the place well. It's all haphazard. Greedy investors buy it and milk the cash from unsuspecting foreign investors who think they are getting a good deal.
You can't compare Medini with Melbourne. The latter is a well-developed city of a 1st world country. Things have long already been established. And it is still moving and hot. Medini is... I dunno... Ghost town where there are more empty condos than businesses?
RTS won't pass by Medini. It will only stop at the old JB side. Anyway, there's no news of it. Look at the way these Msian authorities work you have to shake your head. So much money already poured into Iskandar but look how slow and undecided they develop things. Or is it the money quietly being channeled into 1MDB? Oppsss.... !
The whole problem is there is not enough population in JB with respect to its vast amount of land for property development. And not enough people because the jobs available is insufficient and many are also irrelevant. For those staying in condos, most are middle class people, who must earn a minimum of RM6k salaries, but these jobs are few and far between, other than working in Singapore.
Yes, good observation. I agree. This is especially so in new areas like Medini. In fact, a few investors and friends I spoke to also analyzed this to be a very big issue.
So we see the planning is all wrong. They put the cart before the horse. It's likely greed by the authorities.
The question is, why are so many condos coming in but there are limited jobs available? If buyers say they bought for investment, that is already a wrong concept to begin with. There will be little rental and no resale prospects. But if buyers say they bought to stay there, well, I'm not sure about that. At least for the completed condos in 1 Medini Residences or Imperia at Puteri Harbour, I'm not seeing that.
For Medini, I also keep hearing the authorities say Oh there will be many offices built, industries are moving in, blah blah... but my own ground observation is that the whole place looks damn deserted still. Where are the people and companies?
The last I heard, most Malaysian workers would rather work in SG and earn SGD. Who wants to remain in Medini or other parts of Iskandar if they can earn so much more in SG? That's the irony.
Do we really know all the facts?Is our observation alone enough to make it a sure thing?if we are anxious or worried that it will not take off,do we really think that the govt or sultan not at all worried?Perhaps they know things that we don't know,perhaps they are working on something that are not announced.To dismiss them altogether as inefficient or a bunch who do have the capacity like us is rather premature.If their plan don't take off,they tend to lose much much much more than the buyers or investors.Perhaps they have problem in speed or sequence to achieve their goal.Who knows when they realise or consolidate their strength ...it will be on the right path
Many greenfield development actually failed eg korea Songdo business district, saudi king abdullah financial district are some of the many greenfield that failed miserably. The more natural/organic way for a city to develop are all demand driven, people build because there are real demand for it, not some fancy futuristic vision that excite investors and supply far outpace demand. Apparently medini fit all the criteria nicely for a failed greenfield development.
Ghost town or not depend on two factors 1)proximity to other established town 2)buyer holding power i.e. willingness to cut meat. Good thing about medini is that, it is really not that far away to bukit indah or gelang patah by driving distance, second wave of buyers will be there any time provided it is cheap enough. If the psf is between Rm200 to rm300 (i know is cheap but given surrounding lack of amenities, shops etc, the price reflect the real value), i guarantee this area will quickly fill up by people anytime soon....this lead to point 2, however if many sellers not willing to cut meat easily and willing to let it rot, the ghost town will be there for much longer, just like sg sentosa cove (rich ppl buy it outright, empty for years also dont want to sell).
I wish to counter your claim, there are plan in place for the area, you can see it by the landscape, town planning with hospital, themepark etc. Just when come to make it viable and livable, self sustaining town, it fail by execution. Why? You cant build something out from no where and demand a premium price that are even pricing out the local. The only way for the systematic plan to continue on is to 1)wait until those investors cut meat and let willing real users buy at affordable price or 2) RTS to make high income individual to willing to pay at premium and stay there, and able to commute to sg easily...if in future passing ciq is just 15min matters.
This lead me to the similar problem first wave investors faced in melbourne. First is Dockland, is a
good example, waterfront living, good scenery, greenfield development that can take tram to the city
easily. Result, first wave buyers have to cut lose if they want to sell out their unit...and until
today still very quiet very non vibrant area to lives in. And more recently, massive condo development
in CBD area that are targeting foreigners. The lesson to be drawn from melbourne are 1) understand
locals way of living (they prefer to live in landed suburb and commute to city to work, they dont like
to live in tree) 2) foreigners come because they are attracted by past rental yield (past doesnt
indicative to the future) 3) developers are there to earn money and disregard oversupply issue 4)
understand their policy, foreigner can only buy newly build project....so those who bought in melb,
can only sell to the local, and if the local not willing to buy city area condo... they will need to
take lose and make it attractive enough to entice local.
So somehow melb and medini is pretty much the same. Both are high rise condo, local jb ppl dont like
live in tree (funny enough they do not even understand why singaporean come here to buy, not buying
landed, buying tree pula, living on high rise in sg not enough meh? come jb also buy high high...make
no sense). Investors rush in with herd mentality, all getting out with bruises.
I'm coming from the point of view of an investor. Not someone who is super rich, buying properties for own stay, or someone who doesn't mind dumping RM600k or more on a property and "hope for the best".
It's all the more difficult to invest in Johor because information is not readily available or so clear cut. But that doesn't mean you ignore everything. You have to use whatever facts you have, make relevant observations and finally, conclude appropriately based on your investment objectives.
Just because you don't have all the facts doesn't mean you don't do anything. Then you are no different from gambling your money cos you are not in control of the outcome. Observation need not be a sure thing but it gives an excellent deduction of how things are. Isn't that reasonable?
When you go to a condo that has been completed months ago and you hardly see anyone around, can you not conclude something? When the advertisements say a certain place will be vibrant, companies are going there to set up businesses, office building is completed. But when you go there, everything is so quiet. All you see around you are condos being constructed. You don't see the office workers. You don't see the companies moving over. Can you not conclude something? You dare put your RM1 mil investment there?
Ok, maybe you gung-ho, you tell yourself, I will put my money down anyway. Then like I said, how is this different from gambling? People who gamble never go in with the mindset they will lose. You tell them they are stupid to take such high risks, they will never listen to you. Just like a drunk will usually never admit he is drunk.
So you either go in as a smart investor who makes reasonable deductions from your observations and study of the place, or you put your money down just because the sultan lives there, or because so many others have done so, then it's just a very high risk game for you.
I hope you do see that the authorities, govt or sultan have nothing to lose. They have sold the land. Investors' money are already there. You read all those Iskandar news reports they will almost always report RMxx billion has been invested in Iskandar. They money is in their hands already. Whether future businesses succeed or not, whether properties there will have any value is not their utmost concern. Think of it, if they really cared or planned well at all, would they have sold so much land to develop very expensive condos which most locals won't buy, while NOT ensuring there are amenities and businesses to support them first?
Go read the report where an UMNO official said Iskandar was never about residential properties. So.... they sold many land parcels to the developers, get foreign investors to buy up expensive condos, then now they push them aside and say, "You buy at your own risk!" What does this tell you about them?
As an investor, I don't care about the sultan or whoever is there. Peter Lim invested there. Temasek invested there. But they are going in as developers. You go in as a tiny small time investor. The strategies are different. They make profits doesn't mean you will make. Peter Lim was supposed to develop a residential area. But he has now changed it to a medical hub. What does this tell you of his own sensing? He can do it. But you can't. Cos he's the developer. He's a billionaire. We are not. He can change his tactics. We cannot. You invest wrongly, you lose money and are stuck with the property.
I can also put RM100k on the gambling table. If I am stupid enough, I will say, "Who knows whether I can win or not? I will be on the right path." This is leaving everything to chance. It's not a smart way to invest, especially when there are already many signs that tell you things over there are not so "steady" or right.
I emphasise again this is strictly from a frugal investor's POV who wants to ensure his money is not in some high risk venture. If you have the money to spare or just want to spend for your own use and feel happy, then by all means.....all the above points may not be relevant to you.
why some people suggested dumping and cutting losses? rm 1 mil amounts to 300 k sgd. not enough to buy a small kitchen in beijing and shanghai.
yet can get a decent condo or terrace house and a new car in jb to retire comfortably when one is retrenched earlier in 50s,which is nowadays highly likely for an average wage earner in sg.. at least no need to upgrade skills and work as taxi drivers/ cleaners /security guards or use up cpf for survival...
yet can get a decent condo or terrace house and a new car in jb to retire comfortably when one is retrenched earlier in 50s,which is nowadays highly likely for an average wage earner in sg.. at least no need to upgrade skills and work as taxi drivers/ cleaners /security guards or use up cpf for survival...
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I still no see mass dumping in his favorite project 1Medini. Maybe all these investors are very stupid. Only he will cut and run but he does not have any unit there, in fact in whole of Malaysia.
That will belongs to the own use category. If those singaporean looking to buy, i would suggest to wait for bargain esp if the authority coming out with official rts plan, n the line do not pass through their area, then the price certainly will tumble. Likewise, if passthru, then will be diff price too. Just that the limit for constraining foreigners to only purchase a million and above ppty... maybe you can buy a big penthouse with cheaper price? or go directly for big landed g&g, something that is still desire by rich local johorean.
Investing not always about who rush in, who win first. Is about patient... relax and wait for first wave buyer come out from the market.
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