Stopping progressive payment to developer -- what are the consequences?

[westman]

I'm glad so many of you chipped in to contribute your thoughts. I've read each and every single one of your posts. They are very useful. Too many names to thank but I've noted all of your kind advice!

I've given much thought about the matter. Even talked for some time with a friend in the property line.

I think the sum I have to lose now if I back out is simply not worth it. I guess I got too emotional with all the unfavourable policies/rules of the Msian government, delays and uncertainty of the HSR, lack of buyer interest in Iskandar in 2014/15, and of course, the recent bad report from Maybank.

I did my own search and found that just prior to the notorious Maybank report, there were a handful of good reviews about Iskandar. So the sudden change in mood is suspicious.

While it is true Iskandar is facing an oversupply of units now, I think the writer from Maybank was trying to create a lot of noise... maybe there's some ulterior motive. Or given the huge number of borrowers wanting to apply loans for their Iskandar homes, the bank is afraid there will be many defaulters who can't afford to pay next time? So perhaps the bad news is a wakeup call for developers to slow down, and also for potential buyers to step back and let things cool down first.

I can still afford the progressive payments but just hope the ghost town phenomenon, if it really happens, won't last too long. Nothing can be worse than to see the money splurged on a property does not generate any value or return.

The difficult part for me is that, unlike some of you, I feel very comfortable with my SG home and have no incentive to want to live in Iskandar while I am still actively working in SG. The time to travel to and fro everyday will be too tiring and disruptive. I am buying more for capital gain and investment, which I realised too late that it could be an obstacle. My own fault for not doing sufficient homework back then.

The Msian government really got to work hard to get things going. Well..... hopefully more infrastructure and work come to Iskandar. It won't be soon but I have to tell myself not to be affected by all the "noise"! Long term perseverance is important.....

Take it easy bro..
Always remember this... SG is limited with space and to accomodate more population (which will certainly hit 6mils once pappies won the upcoming election...), some of the population need to outflow to Iskandar. At the moment, if you are in SME business and approached gahmen agency for support.. they will advise you to go Iskandar instead of operating in SG.

See what happened between Shenzhen and Hong Kong.. do you know many hong kong folks stayed at Futian area... am expecting this to happen in 10 years time... by then.. you will be glad to make the so call "unwise" investment decision...

Also.. not forgetting that inflation is the best friend of property investment...as I expect MY INFLATION to goes up in the future with depreciation of RM.... so stay calm...

 

[FHBH12]

There are plenty of reports already out there since 2013 to warn of glut in condominiums, so the Maybank report is nothing special. IIRC, someone got hit badly in this forum (unnecessarily) for publishing the dizzy condominium launch statistics. JB will still remain as a special place for many people working in Singapore to unwind during vacation or retire. As long as the REITS in SG are around to generate healthy profits for their owners, JB will continue to grow.

 

[westman]

Sgcount, i think property outlook in Medini / PH is very different from JB city. The report from Maybank is focussed more on the glut of Chinese condos over in JB City. There could be a slowdown but the number of FDIs in Medini side is very high. It take about 2 years time to kick off. Just like I was talking to University of Reading at Educity. It would be completed in September 2015 and a full operational campus in jan 2016. Eco World is developing an industrialpark as well as Ascendas Industrial park will be there. Not to forget the Temasek wellness Center which is fully sold out. PH/ Medini WILL NOT be a ghost town. It will be up and running in 3 years time.

If there's anyone who worry why they buy a property in Iskandar, I think I should be the one. I don't even know why I buy there and I have no idea what to do with it. But, I am happy with the purchase. I can see the potential. No worries, if you bought Medini / PH. But if you bought JB city, just take it as a structured investment which has 5 years maturity. There's always sunshine every other day.

Agree with your observation and not forgetting the HSR decision to have a station in Nursajaya. That is a clear signal about future potential. Also.. The "person cannot be named" has been busy selling his land near JB and starting to look to Forest City also offers clues about future.

Transportation is always key to city development and developments will generally surround transportation hub.. if you go to google earth .. look at every city.. you will noticed the rail station always situated at the centre of the city..

Present JB is the centre of JB because of rail station.. I am not sure it will continue to be once HSR start operations.. it may be still regards as "central" for a few years but the center of gravity will eventually switch to Nursajay area eventually...

I figure that would take around 15 years to occurr..

 

[IskandarRocks]

Agree with your observation and not forgetting the HSR decision to have a station in Nursajaya. That is a clear signal about future potential. Also.. The "person cannot be named" has been busy selling his land near JB and starting to look to Forest City also offers clues about future.

Transportation is always key to city development and developments will generally surround transportation hub.. if you go to google earth .. look at every city.. you will noticed the rail station always situated at the centre of the city..

Present JB is the centre of JB because of rail station.. I am not sure it will continue to be once HSR start operations.. it may be still regards as "central" for a few years but the center of gravity will eventually switch to Nursajay area eventually...

I figure that would take around 15 years to occurr..

Always take these so called analysts with a grain of salt. They just go with the flow and perhaps vested interests. Here is an Analyst report from 3 years back prediction Nusajaya demand will be 3 times the supply.

https://doc.research-and-analytics....=2J+zx/Edao5rkJkI2aV36srd2NpBH/xquYQiG0bvt0k=

Now they are crying 'oversupply' without getting much into the 'micro' areas within Iskandar. They may turn around again sooner than we think .....

The good news is that big developers like UEM and Medini have scaled down significantly on residentials as a result of all this news, so the situation will be better in 2-3 years than it would have been had UEM and Medini had gone for more launches, in order to capitalize the sentiments, had the positive momentum and sentiments from 2012-2013 continued.

 

[cybermad]

900,000 of SG population will be above 60 in 2025, which is 10 years from now. If 10% chooses to retire in JB, we are talking about 90,000. Assuming 2 to a home, we will need 45,000 homes. I believe the majority would want to live in Nusajaya due to the much better living environment . If HSR is there, it will be easy to come back to SG to visit children and relatives.

The future is rosy , fear not

 

[sgcount]

Sgcount, i think property outlook in Medini / PH is very different from JB city. The report from Maybank is focussed more on the glut of Chinese condos over in JB City. There could be a slowdown but the number of FDIs in Medini side is very high. It take about 2 years time to kick off. Just like I was talking to University of Reading at Educity. It would be completed in September 2015 and a full operational campus in jan 2016. Eco World is developing an industrialpark as well as Ascendas Industrial park will be there. Not to forget the Temasek wellness Center which is fully sold out. PH/ Medini WILL NOT be a ghost town. It will be up and running in 3 years time.

If there's anyone who worry why they buy a property in Iskandar, I think I should be the one. I don't even know why I buy there and I have no idea what to do with it. But, I am happy with the purchase. I can see the potential. No worries, if you bought Medini / PH. But if you bought JB city, just take it as a structured investment which has 5 years maturity. There's always sunshine every other day.

I love your positive outlook, Funniman! Yah, what you said made sense indeed.

 

[sgcount]

Thanks to the rest of the bros here who chipped in more of their views.

You guys are right. I also think patience is key. I got easily swayed by the bad news. It's amazing how much power reporters and analysts have on the psychology of buyers.

Ok, let's wait for the development to progress!

 

[Funniman]

I love your positive outlook, Funniman! Yah, what you said made sense indeed.

I am happy for you.

Just one thing, reporters like to report anything sensational, they don't do the boring stuff.
You should stay a night in Puteri Harbour with your family on Friday or Saturday, have dinner at Brussels pub or 3 others nearby, watch the cars come in and out...then you know what I am talking about. You will see ang mohs, college boys and girls, families with kids and not to forget the big TV screens on Premier League football. The crowd can only get bigger and better over time.

 

[snowbird]

Thanks to the rest of the bros here who chipped in more of their views.

You guys are right. I also think patience is key. I got easily swayed by the bad news. It's amazing how much power reporters and analysts have on the psychology of buyers.

Ok, let's wait for the development to progress!

Come what may, you are the only person to know what are your resources and plan B (most important) should the market move in certain direction and be the one to make the final decision.
Sometimes it is also good to drop by your banker and have a friendly chat about all the "what if" and for professional advice and options.
Good luck!

 

[eric3417]

This forum is really full of Crouching Tigers & Hidden Draggons. And the best thing, they are not selfish or shy to share with your their experiences and thoughts/advices. No doubt like all forums there will be Bad eggs and Empty vessels making lots of noises but it's pleasing to see so many positive responses and advices here. Cheers to all. Keep up the sharing!!!

 

[sgcount]

Yes, eric3417. People here are nice! Always good to share and learn from one another.

Thanks Funniman and Snowbird, advice noted.

 

[sgcount]

Does anyone know when the Gleneagles Hospital in Medini will be ready? I did a search online and it's supposed to be this year. But seems like there is no news about it.

Is it also true we can use our CPF when seeking medical treatment there?

 

[nusaduta]

I was at WCT sales gallery yesterday and the sales staff told me Gleneagles is scheduled for opening in July this year, at the moment the roads are being constructed, upon which there will be a new road linking to E3. Hope that is coming as scheduled

Does anyone know when the Gleneagles Hospital in Medini will be ready? I did a search online and it's supposed to be this year. But seems like there is no news about it.

Is it also true we can use our CPF when seeking medical treatment there?

 

[Legolad]

Does anyone know when the Gleneagles Hospital in Medini will be ready? I did a search online and it's supposed to be this year. But seems like there is no news about it.

Is it also true we can use our CPF when seeking medical treatment there?

June/July this year?
http://www.stasiareport.com/the-big...tal-johors-iskandar-targets-singapore-patient

Note that there are conditions:
https://www.moh.gov.sg/content/moh_...ve_for_Approved_Overseas_Hospitalisation.html
"Patients who opt for the Malaysian hospitals must be referred by the Singapore groups’ centres first."

More info:
http://www.healthxchange.com.sg/News/Pages/Medisave-can-be-used-in-12-Malaysian-hospitals.aspx

Old news:
http://www.thestar.com.my/story/?file=/2011/11/13/nation/9895775&sec=nation


Hope this helps.

 

[sgcount]

Oh great. Hope the roads will be ready by July. Interesting to see how it will charge and help ease the burden of medical services in Singapore.

 

[snowbird]

Oh great. Hope the roads will be ready by July. Interesting to see how it will charge and help ease the burden of medical services in Singapore

According to the Gleaneagle Medini press release, they are still pending regulatory approvals (which usually takes a long time) and the medical block was targetted to be fully ready by end 2016!
And only after the approval, the sales of the medical suites will then be launch.
With such info, expect earliest somewhere mid 2017 instead.