Rental and Resale (All about Rental and Resale prices in Iskandar)

[Investor888]

I am forever amused when so-called "seasoned" investors encourage my friends to "cut losses" on their S$150,000 land houses in Malaysia and flock back to Singapore HDB for S$500,000.

 

[Investor888]

I have ready buyers for Puteri Harbour units. Sea or Marina views high floors. Budget is RM 300psf ( open to neg till RM 399psf ).

Any hero here who have been conned by PRC girls or lost money in MBS/RWS, please PM me discreetly.

 

[mpan12]

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.

1 Medini your favourite ah? That location not good. But at least you're better off if you bought there. Those who bought later for other condos around there paid a lot more.

Where got 1 Medini owners mass dumping now?

The last I heard, some owners tried to sell at low prices also no takers. Those trying to rent out can't find tenants. Maybe a very small handful only but at ridiculous rental amounts.

 

[Tekkun]

I am forever amused when so-called "seasoned" investors encourage my friends to "cut losses" on their S$150,000 land houses in Malaysia and flock back to Singapore HDB for S$500,000.

When you borrow maximum from bank, how to cut and run?
When the unit is not handed over, how to cut and run?
When the title is not in your name, how to cut and run?
When your resale value is lower than the loan amount, how to cut and run?

Will there be buyers, sure there will be. It is a matter of price and how much to lose. Sell cheap cheap lor.
But when one buy into Iskandar, take max. loan, barely had enough to pay legal fees and deposit, it is not easy to pay the losses to the bank for its interests and the differential amount between resale value and the loan amount. Maybe stop bank payments and become a bankrupt, then can cut and run. Otherwise you continue to pay.

Cut and run is easy to say, not easy to do. But if got 2.6m cash in the bank, then can say. If no cash, it is as good as no say.

 

[winners]

I have ready buyers for Puteri Harbour units. Sea or Marina views high floors. Budget is RM 300psf ( open to neg till RM 399psf ).

This is seriously under cutting those owners in distress. It only goes to prove that all these while, the properties there have been very much over hyped by the developers and speculators.

 

[Tekkun]

This is seriously under cutting those owners in distress. It only goes to prove that all these while, the properties there have been very much over hyped by the developers and speculators.

This investor888 bro is either talking tongue in cheek or he is taking advantage.

 

[winners]

This investor888 bro is either talking tongue in cheek or he is taking advantage.

Or he backfired himself.

 

[Funniman]

I very scared when ppl say...i heard, my friends said, my neighbors 's friends, etc.

From own experience first hand, don't have. For me, I give big big discount on these statements.

 

[mpan12]

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.

Well said!

I also feel RM200-300psf is reasonable given the place is so ulu and lack amenities. At that price point, even I may consider just buying for fun to keep. But do you think present owners will sell at that kind of prices? No way. Those who bought in early 2012 I think paid about RM400psf or slightly more. Then seeing how "hot" the property was, other developers joined in and increased the prices to RM750psf and above. Still got buyers blindly went into the market! Some even paid up to RM900psf! At that kind of crazy prices, how do we expect to see 2nd wave of buyers, or owners slashing their prices down to RM300psf?

That's why I said it's better for buyers who now realize their mistake to dump their properties than be stuck with them next time, ONLY IF they are thinking solely about investment. Those that stubbornly hold on for a few years and see little progress in the area, with oversupply coming up, lack of tenants and future buyers, may eventually choose to default on their bank loans or enter into a foreclosure.

I didn't say there are no plans in Medini. I mentioned there is no systematic planning to develop the place well. If I am an urban planner, I will first ensure first that there are sustainable industries and businesses. I must also make sure there is manpower to run the whole show. Then I will slowly bring in the residential condos to meet the demand for housing. Those greedy IRDA fellas did the opposite way. They saw so many developers interested to buy land and desperate buyers rushing in because they could no longer invest in SG, so they just sold and sold.

As you can see and have stated, even with the hospital already setup, a mall there, legoland there, offices there (although empty), we don't see the REAL demand.

RTS will not pass through Medini. Anyway, RTS itself is not even confirmed. Say say only by the Msian authorities.

 

[mpan12]

When you borrow maximum from bank, how to cut and run?
When the unit is not handed over, how to cut and run?
When the title is not in your name, how to cut and run?
When your resale value is lower than the loan amount, how to cut and run?

Can.. why not?

If the loan has not been disbursed, and title deed not given, just give up the property. One has to lose the deposit paid up so far though.

This is only a suggestion from me. A person's point of view may be different. I don't know their financial backgrounds, purpose in investing, whether you buy to invest or stay, whether you're a Malaysian or foreigner, etc. You make your own choice.

For buyers, do your own maths. You want to lose that RM100k deposit or you want to hold on to your RM1mil property for 10 years, with the possibility of few tenants or ridiculous rental returns that can hardly cover your high bank interest. Calculate all your upfront cash every month or year to be paid up. Ask yourself if you can find buyers next time at that kind of high prices.

You want to slash price by selling at RM800k? So you want to lose RM200k next time (Not even counting in the tax, expenses, possible currency loss, interest incurred yet. All these will add up A LOT more) or you want to lose RM100k now?

If you think RM1mil is too little money for you, then of course, keep it lah. But not all investors are in this category. To me, money is still money. It's precious. There are ways to cut losses and do something better when opportunity comes.

 

[Tekkun]

Well said!

I also feel RM200-300psf is reasonable given the place is so ulu and lack amenities. At that price point, even I may consider just buying for fun to keep. But do you think present owners will sell at that kind of prices? No way. Those who bought in early 2012 I think paid about RM400psf or slightly more. Then seeing how "hot" the property was, other developers joined in and increased the prices to RM750psf and above. Still got buyers blindly went into the market! Some even paid up to RM900psf! At that kind of crazy prices, how do we expect to see 2nd wave of buyers, or owners slashing their prices down to RM300psf?

That's why I said it's better for buyers who now realize their mistake to dump their properties than be stuck with them next time, ONLY IF they are thinking solely about investment. Those that stubbornly hold on for a few years and see little progress in the area, with oversupply coming up, lack of tenants and future buyers, may eventually choose to default on their bank loans or enter into a foreclosure.

I didn't say there are no plans in Medini. I mentioned there is no systematic planning to develop the place well. If I am an urban planner, I will first ensure first that there are sustainable industries and businesses. I must also make sure there is manpower to run the whole show. Then I will slowly bring in the residential condos to meet the demand for housing. Those greedy IRDA fellas did the opposite way. They saw so many developers interested to buy land and desperate buyers rushing in because they could no longer invest in SG, so they just sold and sold.

As you can see and have stated, even with the hospital already setup, a mall there, legoland there, offices there (although empty), we don't see the REAL demand.

RTS will not pass through Medini. Anyway, RTS itself is not even confirmed. Say say only by the Msian authorities.

Die lor...I bought PH at RM 1000 psf. Do I regret and realise my mistake? So how? Can help ah?

Nah...I am buying limited edition. Actually I happily wrote my cheque yesterday for the next 15% progress payment.

 

[mpan12]

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...

Bro, different people got different needs. S$300k is big money to many, man.... That is a few years hard-earned salary for some. Can also see to your kids' education.

I'm only SUGGESTING based on people who have bought Iskandar but are now having cold feet on their investment to dump and cut losses.

If one thinks he or she will kena retrenched at 50s, hate Singapore so much, think it will go down the drain, will end up taxi driver/cleaner/beg in the street, then ok lor... Nothing to say.

Or if you're a millionaire and think S$300k is peanuts to throw, I have nothing to say.

But if you bought strictly to invest with no intention to stay there, then I'm just saying you can CONSIDER cutting losses now. I didn't say it's a must. You have to work out your own finances and intentions.

All I can offer is, if you're the common man in the street, it can be no joke if you can't find rental or interested buyers next time for your property.

 

[Tekkun]

Can.. why not?

If the loan has not been disbursed, and title deed not given, just give up the property. One has to lose the deposit paid up so far though.

Why not you check with the developers and banks first and then only give good advice.

 

[mpan12]

Die lor...I bought PH at RM 1000 psf. Do I regret and realise my mistake? So how? Can help ah?

Nah...I am buying limited edition. Actually I happily wrote my cheque yesterday for the next 15% progress payment.

Die your head lah. I type until sian liao.

You bought for your own stay. You bought cos you like the place. You are a Malaysian. Financially, I don't know. You sounded very stable, with daughter studying in Australia, got a few other properties and even thinking of buying more.

I'm only suggesting for those who are in it mainly for investment and face risks of not being able to find returns on their investments.

 

[mpan12]

Why not you check with the developers and banks first and then only give good advice.

Why don't YOU go and check first before implying I didn't?

 

[winners]

I didn't say there are no plans in Medini. I mentioned there is no systematic planning to develop the place well. If I am an urban planner, I will first ensure first that there are sustainable industries and businesses. I must also make sure there is manpower to run the whole show. Then I will slowly bring in the residential condos to meet the demand for housing. Those greedy IRDA fellas did the opposite way. They saw so many developers interested to buy land and desperate buyers rushing in because they could no longer invest in SG, so they just sold and sold.

Yes, they should bring in the industries and businesses first before diving so aggressively into the residential development. This should had been the norm because those early workers can settle or rent in nearby Horizon Hills, Bukit Indah, Taman Sutera and Taman Perling, which is only about 15 minutes by car. It is indeed greed by the IRDA and those developers, cashing in on the property fever prior 2013.

Take our own Jurong Town development in the 70s for example. It had started with building industries before residential. This should be the correct approach.

Anyway, don't forget that there is the Forest City coming up to compete directly with Medini and PH in the near future. I still see no light at the end of the tunnel yet.

 

[Tekkun]

Why don't YOU go and check first before implying I didn't?

I no need to imply.
Don't forget I am a Malaysian and I know the LOCAL rules.
I am a interested party to these type of properties before.
Have you been in such transaction before in Malaysia? Are you a property buyer in Malaysia?

 

[Tekkun]

Yes, they should bring in the industries and businesses first before diving so aggressively into the residential development. This should had been the norm because those early workers can settle or rent in nearby Horizon Hills, Bukit Indah, Taman Sutera and Taman Perling, which is only about 15 minutes by car. It is indeed greed by the IRDA and those developers, cashing in on the property fever prior 2013.

Take our own Jurong Town development in the 70s for example. It had started with building industries before residential. This should be the correct approach.

Anyway, don't forget that there is the Forest City coming up to compete directly with Medini and PH in the near future. I still see no light at the end of the tunnel yet.

There is a big difference between Malaysia and Singapore when it come to development. Everything in Singapore is properly planned and in sequence. Its people are tuned to such approach. There's no dynamic supply and demand. Everything is determined by the Government.

In Malaysia, it is the opposite. It is based on organic growth. It grow on its own course. There's only catalyst projects to spur growth and then it is left on its own to fend itself based on supply and demand. Nothing is fixed and one has to lookout at the ever changing environment.

That's why many Singaporeans appear lost and forever complaining what should be done right or wrong. They are using their own Singapore standard for everything and cross borders as well. But in the real world, it does not happen that way. Different country do things differently. It does not mean they are right or wrong. It is that they are not used to the ways things are done.

 

[tstar]

https://sg.finance.yahoo.com/news/4-steps-retrenched-pmets-must-160000959.html

pmet retrenchment statistics last year.

70% of retrenched pmet switched to service industry after 2.37 months.

is it an exaggeration to say that it ain't a real problem after looking through the article?

Bro, different people got different needs. S$300k is big money to many, man.... That is a few years hard-earned salary for some. Can also see to your kids' education.

I'm only SUGGESTING based on people who have bought Iskandar but are now having cold feet on their investment to dump and cut losses.

If one thinks he or she will kena retrenched at 50s, hate Singapore so much, think it will go down the drain, will end up taxi driver/cleaner/beg in the street, then ok lor... Nothing to say.

Or if you're a millionaire and think S$300k is peanuts to throw, I have nothing to say.

But if you bought strictly to invest with no intention to stay there, then I'm just saying you can CONSIDER cutting losses now. I didn't say it's a must. You have to work out your own finances and intentions.

All I can offer is, if you're the common man in the street, it can be no joke if you can't find rental or interested buyers next time for your property.

 

[xebay11]

That's why many Singaporeans appear lost and forever complaining what should be done right or wrong. They are using their own Singapore standard for everything and cross borders as well. But in the real world, it does not happen that way. Different country do things differently. It does not mean they are right or wrong. It is that they are not used to the ways things are done.

What you say is true but the main concern is not Singaporeans who expect other countries to work as well, but more dangerous is they don't know that other countries do not work the way Singapore does....a small but significant difference.