Property News

[sgcount]

Whether properties remain stagnant in prices also depend on location and the project you bought into. I met a friend's brother who bought a landed in Horizon Hills in 2006 (his friends mocked him as crazy then) and stayed there but in 2012 he sold for RM one million to another Singapore buyer. OK, difference is that he bought for stay and when an offer came along he couldn't refuse, he took it and bought another house in Iskandar where he lives now. Anyway, my point is that there can be CA to be enjoyed and reaped, but in some areas. It's not absolutely a sure lose proposition. Anyway, I doubt there is any prophet here who can tell with precision how things will work out over the next 3-10 years. Who knows maybe by completion time you may be willing to consider moving over to stay in your condo while renting out your Singapore home? It seems you have a decision to make, and certainly not an easy one. If you wish to bail out of your property, what would be the financial impact in terms of penalties and loan repayment to the bank, if any? I believe you would have already done your research for an exit solution, right?

That's the BIG exception for your friend. He bought it way back in 2006. He has the advantage of low price entry. That will give him a good margin for risks.

One thing I don't understand is, why condos in Iskandar are priced so much more than their much bigger and also more popular landed properties.

I didn't consider the risks before buying. So my bad. Really my own fault. Cos if the condo in Medini is worth S$50k, I think I dare to say I will continue to hold. Even no buyers, just keep it aside. S$50k even if lose in the long term, can still take it.

But at S$280-300k, it's a different story.

 

[xebay11]

That's the BIG exception for your friend. He bought it way back in 2006. He has the advantage of low price entry. That will give him a good margin for risks.

One thing I don't understand is, why condos in Iskandar are priced so much more than their much bigger and also more popular landed properties.

I didn't consider the risks before buying. So my bad. Really my own fault. Cos if the condo in Medini is worth S$50k, I think I dare to say I will continue to hold. Even no buyers, just keep it aside. S$50k even if lose in the long term, can still take it.

But at S$280-300k, it's a different story.

2007 and 2008 still good because of growth and limited supply. Now different story.

 

[xebay11]

Yes that's my struggle cos of the huge amount-- $50k. It's like losing money in casino. Or losing money to a scam business. But yet, the thought of possibly losing a lot more down the road gives me the chills.

If it's $20k, I would definitely give it up without question and take it as a lesson learnt. But I woke up very late to the negative news surrounding Iskandar property investment.

I'm thinking strictly from an investment point of view. I do know many here are buying for your own enjoyment or own stay. That's ok I suppose.

Ok I truly understand $50k to me is no small change too, like I said check if can sell now before completion and float the property with agents, maybe you still can get good price.

 

[Frodo]

What is the use of covering half the installment? It is really subsidizing the tenant, don't forget you don't even get to stay in the place.

That is why I said rental is a very real option for cash strapped who still want to enjoy the good and cheap life in JB but many simply laughed and said paying rent is subsidizing the owners property.

For someone in my position that is a whole lot of use!

Of course if rental can cover mortgage that is perfect and ideal but life is not always perfect. So if someone covers half my instalment I would be happy if that is the scenario I am being presented with in a weak rental market. Better half than nothing, that's my view. As also shared earlier, I also bought a condo unit 10 min away from my landed mainly to enjoy the facilities like swimming pool and gym. My thinking was that to buy one landed with such facilities would require at least RM 2 million. But for less than RM1.5 million I can own two properties (one landed and one condo) and get to enjoy the facilities and hopefully get to rent it out. Even if cannot rent out to anyone at least it is still much lesser burden than servicing the mortgage on an over RM2 million property.:p

 

[Frodo]

That's the BIG exception for your friend. He bought it way back in 2006. He has the advantage of low price entry. That will give him a good margin for risks.

One thing I don't understand is, why condos in Iskandar are priced so much more than their much bigger and also more popular landed properties.

I didn't consider the risks before buying. So my bad. Really my own fault. Cos if the condo in Medini is worth S$50k, I think I dare to say I will continue to hold. Even no buyers, just keep it aside. S$50k even if lose in the long term, can still take it.

But at S$280-300k, it's a different story.

We speak with hindsight. But back in 2006 he also faced much mockery over the decision to buy and move into Iskandar. Back then there was no less naysayers than now. That's the point isn't it? We simply don't know how things work out eventually. My friend's brother bore the brunt of ridicule but now he laughed all the way to the bank. Back in 2006 the minimum price was RM250K, and people still scared to "invest" but he went ahead. Later become RM500K people still scared to "invest". Then now is RM1mil people even more scared to "invest". There really is no point harping back to the good old days unless you are a Marty McFly who can go back to the past. I also wished I could have bought this and that in the past....but I never had such seed money to begin with...so it's just wishful "what might have been". I just take what I have in the present and make the most out of it.:p

 

[xebay11]

For someone in my position that is a whole lot of use!

Of course if rental can cover mortgage that is perfect and ideal but life is not always perfect. So if someone covers half my instalment I would be happy if that is the scenario I am being presented with in a weak rental market. Better half than nothing, that's my view. As also shared earlier, I also bought a condo unit 10 min away from my landed mainly to enjoy the facilities like swimming pool and gym. My thinking was that to buy one landed with such facilities would require at least RM 2 million. But for less than RM1.5 million I can own two properties (one landed and one condo) and get to enjoy the facilities and hopefully get to rent it out. Even if cannot rent out to anyone at least it is still much lesser burden than servicing the mortgage on an over RM2 million property.:p

Then your needs are different, you have a utility function in your cost, so you don't mind to take the hit in lower rentals.

 

[Frodo]

Yes that's my struggle cos of the huge amount-- $50k. It's like losing money in casino. Or losing money to a scam business. But yet, the thought of possibly losing a lot more down the road gives me the chills.

If it's $20k, I would definitely give it up without question and take it as a lesson learnt. But I woke up very late to the negative news surrounding Iskandar property investment.

I'm thinking strictly from an investment point of view. I do know many here are buying for your own enjoyment or own stay. That's ok I suppose.

The analogy is not correct. Losing money in casino and scam is a one way loss, you have nothing to your name. But in property even if you keep financing it, it is still yours. You are not scammed and neither is your asset going to be lost. It's real and tangible and your name is on it. Perhaps you can try a mindset change, don't keep thinking investment...think of what you can do with it when your keys come, how to enjoy it...fruit of your labour. Who knows, it may end up being the best decision you made to hold on to it.

 

[Frodo]

Then your needs are different, you have a utility function in your cost, so you don't mind to take the hit in lower rentals.

Of course I mind....but if left without much of a choice I would rather have little than nothing.

 

[xebay11]

The analogy is not correct. Losing money in casino and scam is a one way loss, you have nothing to your name. But in property even if you keep financing it, it is still yours. You are not scammed and neither is your asset going to be lost. It's real and tangible and your name is on it. Perhaps you can try a mindset change, don't keep thinking investment...think of what you can do with it when your keys come, how to enjoy it...fruit of your labour. Who knows, it may end up being the best decision you made to hold on to it.

Good point, maybe sgcount should wait until the situation gets clearer to act with more certainty. But he can still try to see if there are any good offers for his property this would also help him to judge the market.

 

[Frodo]

You bought landed, so quite safe, condo owners bought air, I don't want to say who taught me this concept.

If I wasn't able to buy landed, I would still buy condo provided it is still those projects that can be bought for less than RM1 million. Reason is because I would want to rent out my HDB and still be able to own another property in JB. Something I can call my own home.:p

 

[Frodo]

Good point, maybe sgcount should wait until the situation gets clearer to act with more certainty. But he can still try to see if there are any good offers for his property this would also help him to judge the market.

Ya, if can sell then best scenario, if not I also don't think it is a doom decision. Gloom perhaps, but not doomed.:p

But....if I were you I would choose to wait until completion in 2018....and then evaluate again....who knows I may like it very much after all.:p

 

[FHBH12]

It is very messy to cut loss now. 1st half o next year will be a bad year. Even SG is retrenching now. Best to hope for Medini plot B office sector to take off in 3-5 years' time.

 

[sgcount]

Huh? Just a few posts earlier you said your only advice was for him to sell....which means to take a $50K hit?

And why argue and fight? No need to take such an aggressive stance lah.

If I were in sgcount's position, I would hold on to the property so long as I can finance it. My thinking may be naïve but it is still my own property after all. If I bail out I surely lose in terms of penalties and other financial losses. But if I can hold, I can still enjoy and make use of it. I will take it as paying off an asset that will be mine for many years to come. Consider that in Singapore people can buy cars that cost $120 to $150K and it is almost certainly lose money all the way and you can't live in it and can only drive it, but for condo you can live in it and make use of facilities. And besides, since investing has its risks, I should have prepared myself that I may not be able to rent out or have to rent low eventually.

Thanks for sharing this point of view.

Your suggestion makes sense based on your lifestyle needs. I wish I could have a similar one like yours. I tried to consider it but it's very hard due to work and personal needs.

Go back once a weekend in several months still can. But to do so everyday is just too taxing and not feasible.

 

[sgcount]

If I wasn't able to buy landed, I would still buy condo provided it is still those projects that can be bought for less than RM1 million. Reason is because I would want to rent out my HDB and still be able to own another property in JB. Something I can call my own home.:p

I vaguely recall you also bought a condo besides the landed one which you are now living in?

May I know what do you intend to do with the condo?

 

[Frodo]

Thanks for sharing this point of view.

Your suggestion makes sense based on your lifestyle needs. I wish I could have a similar one like yours. I tried to consider it but it's very hard due to work and personal needs.

Go back once a weekend in several months still can. But to do so everyday is just too taxing and not feasible.

Prior to moving over in 2013 whenever we drove over for makan and shopping and saw the jams I also remarked that it was crazy to commute back and forth everyday. These people don't have a life at all. Post 2013, I am living a life that I never had back in Singapore, the daily commute becomes just one aspect of inconvenience that I take it within my stride. I commute by bike (not the most comfortable) but during the jam time I enrich myself by reading Kindle books or surfing the net, or post here. Adapt and evolve. LOL!

 

[sgcount]

It is very messy to cut loss now. 1st half o next year will be a bad year. Even SG is retrenching now. Best to hope for Medini plot B office sector to take off in 3-5 years' time.

In what sense is it messy?

Are you buying the condo for own stay?

From what I guess, it sounds like many here are buying more for own usage. That's rather safe... As long as not buying to expect rental or selling it off next time.

At least you get to enjoy the kind of space that you won't get in SG.

I look at the ridiculous sizes of condos and HDB flats nowadays...it's so disappointing. For condos, the interior is already so small but they like to give a huge balcony. Yet people still buy. There are really many rich people in Singapore!!!

 

[Frodo]

I vaguely recall you also bought a condo besides the landed one which you are now living in?

May I know what do you intend to do with the condo?

I bought KSL Residences@Daya (some may pui chow nua on the project) but it was the best option for us given what was available around. It is a mere 10min drive from our landed, near to Tebrau City, Mt Austin (BTW we went to the Adventure Park at Austin yesterday, nice!). According to the sales agent it was supposed to have the option to have KSL manage the unit when the hotel is fully operational. I don't know if this would ever materialise but even if it does not, never mind. We can try renting it out on our own. We chose the highest floor, thinking that this might make it more attractive to rent out.

We intend to make use of its facilities since that was our main motivation for buying it in the first place. Some may think we stupid, why not join a country club for this purpose? But we think this option is better since we also don't play golf and have even much less use for a country club membership where we throw down the drain with the monthly fees. Besides we can use the condo to host family and friends when they come over. Actually with the road widening going on, I am optimistic (some may say naïve and gullible) that the Tebrau/Austin/Daya area would see good action come 2018.

If you have bought just one condo unit in Iskandar, I think it is OK. But if you bought multiple units then there is probably cause for concern.

 

[Frodo]

Delete post

 

[Frodo]

In what sense is it messy?

Are you buying the condo for own stay?

From what I guess, it sounds like many here are buying more for own usage. That's rather safe... As long as not buying to expect rental or selling it off next time.

At least you get to enjoy the kind of space that you won't get in SG.

I look at the ridiculous sizes of condos and HDB flats nowadays...it's so disappointing. For condos, the interior is already so small but they like to give a huge balcony. Yet people still buy. There are really many rich people in Singapore!!!

Agree. Initially we wanted to upgrade to a bigger resale HDB, but the exorbitant price presented an insurmountable barrier. BTO? Must wait a few years and we need a bigger place "now". Besides the BTO is not much bigger than our 4A flat. And it still means we have one HDB property, that's it. EC and Condo is out of the question altogether. The only silver lining was over the Causeway.

 

[Relaxman]

I bought KSL Residences@Daya (some may pui chow nua on the project) but it was the best option for us given what was available around. It is a mere 10min drive from our landed, near to Tebrau City, Mt Austin (BTW we went to the Adventure Park at Austin yesterday, nice!). According to the sales agent it was supposed to have the option to have KSL manage the unit when the hotel is fully operational. I don't know if this would ever materialise but even if it does not, never mind. We can try renting it out on our own. We chose the highest floor, thinking that this might make it more attractive to rent out.

We intend to make use of its facilities since that was our main motivation for buying it in the first place. Some may think we stupid, why not join a country club for this purpose? But we think this option is better since we also don't play golf and have even much less use for a country club membership where we throw down the drain with the monthly fees. Besides we can use the condo to host family and friends when they come over. Actually with the road widening going on, I am optimistic (some may say naïve and gullible) that the Tebrau/Austin/Daya area would see good action come 2018.

If you have bought just one condo unit in Iskandar, I think it is OK. But if you bought multiple units then there is probably cause for concern.

How much you invested on the Condo that time? I think your reasons behind this investment is logical. The location seem good too. Not like those who have invested in Matex Condo at JB city....they are crying now.