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

[ECboy]

Getting tenant in Medini within these few years can be very challenging, since most parts are not developed yet. $1250 SGD is actually quite affordable if you are using the condo for yourself. In Singapore, you will have to pay over $3500 SGD (net based on above cost categories) to enjoy equivalent space and facilities in a private condominium. If there are good eatery and a small mall nearby, it can be very relaxing for weekend stay. Do treat yourself nicely and enjoy it once it VPs.

Pls tell me when you find a 3500 rental condo in SG? Only those tiny ones got la, or far far away from town.

My landlord want to play games with me now so I'm looking to move, all condos that I like, which are larger ones are at least 4k min. Those with good locations are like 5k.

 

[FHBH12]

Pls tell me when you find a 3500 rental condo in SG? Only those tiny ones got la, or far far away from town.

My landlord want to play games with me now so I'm looking to move, all condos that I like, which are larger ones are at least 4k min. Those with good locations are like 5k.

I'm looking at owner's cost based on approximately 800 sqft 2-bedder condo.

 

[sgcount]

Definitely and highly not recommended.

Kenapa, bang?

Why bro? Don't mind can elaborate?

 

[winners]

Kenapa, bang?

Why bro? Don't mind can elaborate?

Although there is the condo's security, but my own personal feeling is that it's not safe to leave it unoccupied for such long duration. Otherwise, you had better to install an alarm system which can alert you via your handphone.

 

[sgcount]

Although there is the condo's security, but my own personal feeling is that it's not safe to leave it unoccupied for such long duration. Otherwise, you had better to install an alarm system which can alert you via your handphone.

Oic.. wah that bad huh.... I've heard of such break-ins in Johor condos. But I hope the newer condos 3-tier security is more secured.

Visiting it once every few months is just a thought only.... I think treating the condo as a "holiday home" is just a way of escaping reality. I work out the maths it's actually even more expensive to treat it that way.

I did think about keeping the condo maybe for 15-20 years for retirement. But got a few people advised me this is not wise also as Johor condos age quickly and by then don't know what will happen.

I'll leave the matter aside now and see how it goes. Think so much also no use. More headaches.

 

[winners]

Oic.. wah that bad huh.... I've heard of such break-ins in Johor condos. But I hope the newer condos 3-tier security is more secured.

Visiting it once every few months is just a thought only.... I think treating the condo as a "holiday home" is just a way of escaping reality. I work out the maths it's actually even more expensive to treat it that way.

I did think about keeping the condo maybe for 15-20 years for retirement. But got a few people advised me this is not wise also as Johor condos age quickly and by then don't know what will happen.

I'll leave the matter aside now and see how it goes. Think so much also no use. More headaches.

It's all up to you and your time management. However, since it is very near to the CIQ, it shouldn't be too much of a hassle to visit it once a week or at least a fortnight. If visiting once every few months, I wouldn't do it. After all, it's not like having to take a plane there right?

No matter what security there is, it is still possible to be breached, especially if your neighboring units (same level as yours) are also vacant. Just my personal opinion.

 

[Tekkun]

It's all up to you and your time management. However, since it is very near to the CIQ, it shouldn't be too much of a hassle to visit it once a week or at least a fortnight. If visiting once every few months, I wouldn't do it. After all, it's not like having to take a plane there right?

No matter what security there is, it is still possible to be breached, especially if your neighboring units (same level as yours) are also vacant. Just my personal opinion.

I think to have peace of mind, just install a grille gate. (Again have to spend money)

 

[enjoylife77]

Yes, but it's still precious money. It's not so much a matter of whether one can afford to pay the monthly payment. But if the property is strictly for investment, it must not be money that is slipping away at a loss.

The leasehold is not so much a concern if the condo is new. But it's the 4.5% bank interest and lack of rental and buyers that will drain the money away. By the 5th year, the loss can be substantial.

Its never comfortable to hold an asset that depreciate over time not forgetting the attached holding cost. Non of my friend's Iskandar holding show a net profit. Today S$1 can buy RM$2.93. Very troubling.

 

[Manhattan]

Hope that it will not be worst than holding a car in SG. Sgd120k and depreciating by the day till almost zero 10 years later, but at least you enjoy to drive to improve quality if life. So the critical question is, did you chose a unit you personally liked and enjoy staying in ?

 

[sam29]

Now my own super prediction: by 2018 to 2020, there will be a waves of not so well yet sufficient earning middle class PRC, driven by lack of investment option in their home country (scare of shares and sluggish 60 yrs leasehold residential ppty market, note:there is no freehold ppty in china), will come in massively to iskandar for investment.... and the bubble will blow and sustain for a number of years thereafter.

"Lack of Investment option" will never be the case. In fact it is the opposite -> Too many financial instruments, too much area to invest, From short term bonds "Yu’e Bao" or P2P Loan 'Securites for Downpayment', yup, real estate agent will take care of your 20% downpayments, stamp duties all the cash needs. Real estate companies get funds from other P2P Investors. Buying house is like buying carrot cake here in China.

Average New House Price Touched Record High in Shanghai http://www.shanghaidaily.com/busine...omes-touches-record-in-Shanghai/shdaily.shtml

From the article, avg price is RMB40,442/square meter, or SGD800 psf, so around SGD800K for a typical 3 bed room flat. Shanghai has 25 millions population = FIVE Singapore. Iskandar condo no matter how high end definitely very very cheap to them. If only 1% of Shanghai people want to buy we have 250K units of housing demands here, which could mean all the current supply units being snapped up. China has at least 90 cities with 5 millions or more people. KL or SG is only a 3rd or 4th low tier in China. If for every those cities, 0.01% people want to buy house in SG and Malaysia, all the current housing supply are not enough for them. Even you build another 100k units also not enough.

If China want to buy, Singapore or Iskandar supply is just a peanuts to them. So you understand the buying power of China now. Affordability will never be an issue. You have underestimated their wealth power.

 

[sgtsk]

Pls tell me when you find a 3500 rental condo in SG? Only those tiny ones got la, or far far away from town.

My landlord want to play games with me now so I'm looking to move, all condos that I like, which are larger ones are at least 4k min. Those with good locations are like 5k.

Clementi park, sunset way

 

[sgcount]

It's all up to you and your time management. However, since it is very near to the CIQ, it shouldn't be too much of a hassle to visit it once a week or at least a fortnight. If visiting once every few months, I wouldn't do it. After all, it's not like having to take a plane there right?

No matter what security there is, it is still possible to be breached, especially if your neighboring units (same level as yours) are also vacant. Just my personal opinion.

Point noted. But don't think I got the time or energy to go there once a week or fortnight. My life is pretty much centred in SG....

 

[sgcount]

Hope that it will not be worst than holding a car in SG. Sgd120k and depreciating by the day till almost zero 10 years later, but at least you enjoy to drive to improve quality if life. So the critical question is, did you chose a unit you personally liked and enjoy staying in ?

Yes, that's why I don't own a car. It doesn't make sense when I live near the MRT station and my workplace is only 7 stops away, also near MRT. But with a car, life is more comfortable. Just more money to spend.

I didn't choose the unit for myself. I've never thought of staying there as I'm still actively working and my life is deeply rooted in Singapore.

I just wanted something to invest in and make my money work harder. But it seems it's the opposite after the truth has settled down now.

Some think people like me are being greedy. Want to buy and flip. I didn't think that way. It was buy and rent out, hopefully years down the road, when there is capital appreciation, can make some money. But I realize that is unlikely to happen. I admit unashamedly I was following the herd when I bought an iskandar condo.

The condo has nice features but the location is not the best. And being in Medini, it's in a no man's land. When I was there, the surroundings were extremely quiet.

 

[sgcount]

Its never comfortable to hold an asset that depreciate over time not forgetting the attached holding cost. Non of my friend's Iskandar holding show a net profit. Today S$1 can buy RM$2.93. Very troubling.

What kind of properties did your friend buy in Iskandar and how long have they held it?

Yes... definitely not good to hold something that depreciates, unless it's spare money one is willing to part. Like buying an electronic gadget, use a few times, new model comes out, throw, buy a new one. Just that with property, the amount is very huge and much bigger. There's also opportunity cost involved.

Some here bought for retirement or because they like the unit very much and it's money they don't think about. That's fine I suppose.

 

[winners]

Yes, that's why I don't own a car. It doesn't make sense when I live near the MRT station and my workplace is only 7 stops away, also near MRT. But with a car, life is more comfortable. Just more money to spend.

I didn't choose the unit for myself. I've never thought of staying there as I'm still actively working and my life is deeply rooted in Singapore.

I just wanted something to invest in and make my money work harder. But it seems it's the opposite after the truth has settled down now.

Some think people like me are being greedy. Want to buy and flip. I didn't think that way. It was buy and rent out, hopefully years down the road, when there is capital appreciation, can make some money. But I realize that is unlikely to happen. I admit unashamedly I was following the herd when I bought an iskandar condo.

The condo has nice features but the location is not the best. And being in Medini, it's in a no man's land. When I was there, the surroundings were extremely quiet.

So your unit is in Medini. I thought you had bought Sky88 in downtown JB. Being without a car, it'll be quite a distance, even if taking the CW buses from Boon Lay or Jurong East. Anyway, do seriously consider installing an alarm system which can "call" you when intruded. In this way, you can at least immediately call the security to check for you should it trigger. Otherwise, if your unit comes bare with no air-cons, no cooker hood, stove, etc, then I think it should be safe to leave it vacant since there's nothing much to take anyway.

Medini and PH will take several years more to be better populated, pending on Johor's economic progress.

 

[sgcount]

So your unit is in Medini. I thought you had bought Sky88 in downtown JB. Being without a car, it'll be quite a distance, even if taking the CW buses from Boon Lay or Jurong East. Anyway, do seriously consider installing an alarm system which can "call" you when intruded. In this way, you can at least immediately call the security to check for you should it trigger. Otherwise, if your unit comes bare with no air-cons, no cooker hood, stove, etc, then I think it should be safe to leave it vacant since there's nothing much to take anyway.

Medini and PH will take several years more to be better populated, pending on Johor's economic progress.

Yah, mine's Medini. I've taken a bus to Legoland and walked to the condo site. It's crazy as most would drive! Anyway, about 15 mins' walk.

The condo comes with air-con, wardrobes, cooker hood, etc. Most do these days.

Anyway, see how... I bought based on what I heard last time. Got Legoland, so many universities, Gleneagles hospital, Pinewood Studio, mall, offices... But I was so wrong. Very surprised nothing is moving much. Even with all of those already set up, rental is rare and resale is zero as far as I know.

I'm not confident of the place even in the next 5 years. Medini is already a no-man's land. Mine is at an even more secluded area so that makes it tougher to get tenants or future buyers.

Another mistake was I didn't check what was a good price to buy. At a very high RM760 psf, I only learnt later no Malaysians will buy. At least not in Medini and a condo. So capital appreciation and buyer interests are very questionable also.

Many who bought Puteri Harbour are staying there. Or at least that is the impression I get from here. So I don't think they really care how long the place will be developed.

 

[winners]

Yah, mine's Medini. I've taken a bus to Legoland and walked to the condo site. It's crazy as most would drive! Anyway, about 15 mins' walk.

The condo comes with air-con, wardrobes, cooker hood, etc. Most do these days.

But I was so wrong. Very surprised nothing is moving much. Even with all of those already set up, rental is rare and resale is zero as far as I know.

I'm not confident of the place even in the next 5 years. Medini is already a no-man's land. Mine is at an even more secluded area so that makes it tougher to get tenants or future buyers.

Another mistake was I didn't check what was a good price to buy. At a very high RM760 psf, I only learnt later no Malaysians will buy. At least not in Medini and a condo. So capital appreciation and buyer interests are very questionable also.

In this case, you had better to at least install an alarm system which can call to your handphone when there's an intrusion. At least you can have peace of mind if it doesn't call you. Also, must have your condo security's contact numbers on hand to ask them to assist you to check in case of need.

That's so much I can offer to advise you. Don't be so pessimistic. Look on the bright side, especially when time is still on your hands. Learn from this mistake and move on.

 

[mpan12]

My advice, as of last time, is to dump the property. You either bite the bullet, lose the RM130k or so, or face the possibility of being stuck with more than RM700k liability in years to come.

There is no point to keep it if you are dead sure you're not going to live there any time soon.

To buy a Johor condo at that kind of price for investment, my view is that it's high risk, likely to lose. You may think you're losing a lot now if you give it up. But if you keep it, then your money will bleed more, just more slowly until it builds up to a large amount in a couple of years.

Just ask yourself: How much will you be losing to the bank interest, opportunity cost, taxes, maintenance fees, renovation, furniture, installation of alarm system, etc? Why are you paying for all these when you are getting zero returns?

If you can't find rental, then what? Are you willing to accept RM1.5k rental but your bank repayment every month is above RM3k for the next 20 years? Your money just gets locked up in the property you're not using.

Don't forget risk of damage by irresponsible tenants. And if you let someone manage your condo, you have to also factor in the management fees.

Do you think your condo can appreciate to RM1 million in 5-10 years' time? Who is going to buy it?

Going into investment is not always about wanting to make money all the time. When your aim is no longer there or you realize you've made a mistake, sometimes you need to learn how to cut losses to prevent more damage to your finances.

Just my opinion....

 

[enjoylife77]

What kind of properties did your friend buy in Iskandar and how long have they held it?

Yes... definitely not good to hold something that depreciates, unless it's spare money one is willing to part. Like buying an electronic gadget, use a few times, new model comes out, throw, buy a new one. Just that with property, the amount is very huge and much bigger. There's also opportunity cost involved.

Some here bought for retirement or because they like the unit very much and it's money they don't think about. That's fine I suppose.

They bought those highly advertised development like Danga Bay Country Garden. Till now it is not fully sold so flipping is out of the question. One bought into Taman Utama corner terrace because of close proximity to siblings. Another bought into Setia Indah developed by KLSE listed SP Setia corner terrace during the 2009/10 crisis with all the perks thrown in by developer and yet not profitable because of exchange rate. In fact when they contacted the agent to market their unit, not many show sincere interest.

Adding to it is the minimum RM$1 million cap for sale to foreigner, the ever increasing toll charges and traffic jam.

For them , 1st mover advantage does not apply.

 

[FHBH12]

They bought those highly advertised development like Danga Bay Country Garden. Till now it is not fully sold so flipping is out of the question. One bought into Taman Utama corner terrace because of close proximity to siblings. Another bought into Setia Indah developed by KLSE listed SP Setia corner terrace during the 2009/10 crisis with all the perks thrown in by developer and yet not profitable because of exchange rate. In fact when they contacted the agent to market their unit, not many show sincere interest.

Adding to it is the minimum RM$1 million cap for sale to foreigner, the ever increasing toll charges and traffic jam.

For them , 1st mover advantage does not apply.

Location and conditions of the house determine the demand and price. Converting profit in MYR to SGD is a matter of investment from a Singaporean's perspective.

Location wise Danga Bay is quite convenient to cross over to Singapore. The concept of Country Garden is a self-contained mini coastal city. Success will hinge on RTS and (self-provided) feeder bus service. Let's wait for a few more years and see the end result before commenting further.