Property News

[Manhattan]

Going back to the RM1.1k a month rental, and owner bought the condo for like RM300k in 2012, the ROI of 4.4% looks attractive. I would assume at this price point, perhaps no bank loan was taken. The other costs involved would be maintenance and maybe furniture/renovation.

But if a present condo costs say RM700k, rental is only a bit higher at say RM1.6k, and buyer takes loan, the ROI is much less. With the high Malaysian bank interest rate, it may be siong. Even if the condo is new, depending on rental to offset the mortgage is quite impossible.

So the only other hope is for capital appreciation. I'm not sure if condos in JB can have good C.A.

For those 10 year old condos in JB, say owner bought in 2006, is there significant CA till date?

Those who bought their condos in 2013 and after, I think need to wait a lot longer to gain something. For an area like Medini, think have to factor in a longer time frame. There is also forex risk.

Someone just shared with me there is a good chance Msia banks will increase their interest rate along the way. Not sure if true or rumours only. We might be seeing 5% soon?

Indeed those depending on rental and CA to make ends meet will be in for a tough time, based on current situation. The CA will mainly be the adjustment upwards due to inflation, so not much.
For those people who bought in johor for retirement and own stay, it's still a good value proposition. Imagine trying to buy a rm300k condo now in medini. Rental in future will only go up and just feels different since its not yours.
Retirement in johor is good if they don't develop so fast, the cost and quality of livng now is just great. Wide open spaces, value for money restaurants, cheap massages and car, etc. Not to forget it's just a 20mins bus ride away.

 

[xebay11]

Indeed those depending on rental and CA to make ends meet will be in for a tough time, based on current situation. The CA will mainly be the adjustment upwards due to inflation, so not much.
For those people who bought in johor for retirement and own stay, it's still a good value proposition. Imagine trying to buy a rm300k condo now in medini. Rental in future will only go up and just feels different since its not yours.
Retirement in johor is good if they don't develop so fast, the cost and quality of livng now is just great. Wide open spaces, value for money restaurants, cheap massages and car, etc. Not to forget it's just a 20mins bus ride away.

Exactly right, that is why I say that folks here must see the difference and take into account of CA vs inflation and also calculate cost of funds in order to see the true picture, instead they choose to sweep this under the carpet to look good, and mock me when I said that I viewed investments in the past just like them currently, I was only 17 and unexposed to investing.

Yes and since these folks condemned me and call kettle black for being a capitalist, they have no right then to talk about yields and rents as they themselves have labelled such behavior as capitalistic.

So let all discuss here about really retiring or living in Johor which, barring safety concerns, is a good proposition for many. Rental will only go up if supply goes down but in Johor is more the case, even if rents go up, tenants are free to move to newer or lower rent properties.

 

[Tekkun]

Yes your religion is none of my business or concern, but can't escape the fact that people here give not because they want to but because they actually want to enrich themselves ultimately and yet also have people who support such notions.

That is your notion. Respect what is mine.

 

[xebay11]

That is your notion. Respect what is mine.

Respect is a two way street, you did not respect my notion for tax reduction and instead made a smart ass comment about giving to charity, now that I was only stating a fact about your notion you get angry and instead ask me to respect you???

Next time just remember that respect begets respect. You choose disrespect others, you will receive disrespect too.

 

[sgcount]

Indeed those depending on rental and CA to make ends meet will be in for a tough time, based on current situation. The CA will mainly be the adjustment upwards due to inflation, so not much.
For those people who bought in johor for retirement and own stay, it's still a good value proposition. Imagine trying to buy a rm300k condo now in medini. Rental in future will only go up and just feels different since its not yours.
Retirement in johor is good if they don't develop so fast, the cost and quality of livng now is just great. Wide open spaces, value for money restaurants, cheap massages and car, etc. Not to forget it's just a 20mins bus ride away.

I think those with spare cash, no need to worry about finances and going to retire, it may make sense to pamper with an Iskandar property. Can understand why some want to buy a PH condo.

But to depend solely on rental and appreciable capital appreciation not due to inflation correction, it's very uncertain.

PH condos distinguish themselves as being near to water. For many others, it's hard to stand out. We also wouldn't know how many more condos developers will build next time. Think tenants/buyers will naturally prefer newer condos in 10-15 years' time? Those who bought earlier may have to hold for a long time or sell cheaply.

As of now, many developers seem to be taking their time to complete their projects. Some are supposed to VP in 2016 but by the look of it, it could be delayed till later part of 2017 or even 2018. Construction at the Volt has also not started at all. Too many condos in the vicinity sitting tightly beside each other: 1Medini, Medini Signature, Iskandar Residences. While surrounding them are just trees and empty land. The demand is not there yet. Even some Dangy Bay projects are on hold I think. Own stay ok.... for investment, not sure though.

 

[Tekkun]

Respect is a two way street, you did not respect my notion for tax reduction and instead made a smart ass comment about giving to charity, now that I was only stating a fact about your notion you get angry and instead ask me to respect you???

Next time just remember that respect begets respect. You choose disrespect others, you will receive disrespect too.

1. My comment to you is "not my cup of tea." Is that smart ass comment?
2. Charity discussion is between AUGS14 and me. Nothing to do with you. You butt in for what?
3. I don't get angry. Why should I? Not worth the time and trouble in a forum like this. In fact I am laughing. Different levels.

 

[Tekkun]

I think those with spare cash, no need to worry about finances and going to retire, it may make sense to pamper with an Iskandar property. Can understand why some want to buy a PH condo.

But to depend solely on rental and appreciable capital appreciation not due to inflation correction, it's very uncertain.

PH condos distinguish themselves as being near to water. For many others, it's hard to stand out. We also wouldn't know how many more condos developers will build next time. Think tenants/buyers will naturally prefer newer condos in 10-15 years' time? Those who bought earlier may have to hold for a long time or sell cheaply.

As of now, many developers seem to be taking their time to complete their projects. Some are supposed to VP in 2016 but by the look of it, it could be delayed till later part of 2017 or even 2018. Construction at the Volt has also not started at all. Too many condos in the vicinity sitting tightly beside each other: 1Medini, Medini Signature, Iskandar Residences. While surrounding them are just trees and empty land. The demand is not there yet. Even some Dangy Bay projects are on hold I think. Own stay ok.... for investment, not sure though.

sgcount,
I am happy for you. I remember the days when you first came in, you were worried sick. But you took time to analyse and take stock what is the actual situation. Your analysis is getting about there. Hold on for now unless you get itchy again
The keyword is "integration". Happy investing.

 

[eric3417]

Back to the 1.1k rental post.

1) Is it a legit post? Agent fishing for tenants?
2) Most of the others similar sized units are asking $1.5k upwards.
3) Rental yield still decent at 4.4% based on 1.1k tenancy.

To Sgcount, subsidizing tenants mortgage with your medini condo is not the end of the world,
some properties in SG owners also subsidizes tenant. Esp unit in CCR districts.
Like what Tekkun mentions, dun fret too much over it.
Things are slow but not Doom & Gloom.

 

[Frodo]

sgcount,
I am happy for you. I remember the days when you first came in, you were worried sick. But you took time to analyse and take stock what is the actual situation. Your analysis is getting about there. Hold on for now unless you get itchy again
The keyword is "integration". Happy investing.

If you have invested in only one JB property, it is definitely not doom and gloom, because you can always use it for own stay. Probably more tricky if you have multiple investments in JB condos.

 

[Frodo]

Back to the 1.1k rental post.

1) Is it a legit post? Agent fishing for tenants?
2) Most of the others similar sized units are asking $1.5k upwards.
3) Rental yield still decent at 4.4% based on 1.1k tenancy.

To Sgcount, subsidizing tenants mortgage with your medini condo is not the end of the world,
some properties in SG owners also subsidizes tenant. Esp unit in CCR districts.
Like what Tekkun mentions, dun fret too much over it.
Things are slow but not Doom & Gloom.

I agree. Even if it is half a tenant (his rental pay for 50% of your monthly mortgage), it is still better than nothing, in my view. Things can still be better in the near future when more things are up and running.

 

[AHGS14]

Respect is a two way street, you did not respect my notion for tax reduction and instead made a smart ass comment about giving to charity, now that I was only stating a fact about your notion you get angry and instead ask me to respect you???

Next time just remember that respect begets respect. You choose disrespect others, you will receive disrespect too.

I strongly believe that respect is earned. Talking down on others, the one upsmanship is 1 sure way to lose respect.

 

[cybermad]

I strongly believe that respect is earned. Talking down on others, the one upsmanship is 1 sure way to lose respect.

This chap got serious problem. That's why i said hard to imagine he is already middle aged.

 

[xebay11]

I strongly believe that respect is earned. Talking down on others, the one upsmanship is 1 sure way to lose respect.

What upmanship? Facts are facts, I don't mince words and am direct.

 

[xebay11]

I agree. Even if it is half a tenant (his rental pay for 50% of your monthly mortgage), it is still better than nothing, in my view. Things can still be better in the near future when more things are up and running.

If tenant pay only half your monthly mortgage means you are financing him. He only pay half the price you paid and can enjoy fully what you paid.

Anyway take it as charity and don't expect anything in return. You will be fine.

 

[xebay11]

1. My comment to you is "not my cup of tea." Is that smart ass comment?
2. Charity discussion is between AUGS14 and me. Nothing to do with you. You butt in for what?
3. I don't get angry. Why should I? Not worth the time and trouble in a forum like this. In fact I am laughing. Different levels.

Charity discussion was about paying taxes and giving to charity, indirectly referring to my point on taxes.

 

[eric3417]

If tenant pay only half your monthly mortgage means you are financing him. He only pay half the price you paid and can enjoy fully what you paid.

Anyway take it as charity and don't expect anything in return. You will be fine.

What pipe u smoking Wise one???
The unit belongs to Owner not tenant.
So who is part financing who in the End?

Dun expect anything in the End?
Atomic Bomb comes to Iskandar?
LMAO… Try harder lah.

 

[eric3417]

This chap got serious problem. That's why i said hard to imagine he is already middle aged.

Self Proclaimed Wise one Cum Millionaire Investor is actually entertaining.
Livens up Threads & boost readership volumes like STOMP.

We all mostly know his/her Agenda.
Just noise nia. Nothing to show for.

 

[Frodo]

If tenant pay only half your monthly mortgage means you are financing him. He only pay half the price you paid and can enjoy fully what you paid.

Anyway take it as charity and don't expect anything in return. You will be fine.

By right if I buy something I should pay for it mah, but if someone is helping me to pay half of what I should be paying in the first place, then I see it as he financing my purchase partly lor. There is really no charity here since he is paying me rent, and if he spoils things he has to make it up according to tenancy agreement lor.

 

[xebay11]

What pipe u smoking Wise one???
The unit belongs to Owner not tenant.
So who is part financing who in the End?

Dun expect anything in the End?
Atomic Bomb comes to Iskandar?
LMAO… Try harder lah.

Before we start the conversation proper, the way you reply is like mine, and some people say it is disrespectful, but I am ok and will reply you likewise, so don't go later crying that I must reply respectfully. End rant.

OK I must ask you the question of what have you been smoking? you put in so much money and after factoring in interest of 4 to 5%, in the end you may have made a bigger loss that the tenant, at first paper loss and in the end if you sell, real loss. I know of people like that who made real losses and forced to sell in order to cut loss. So become same like tenant, both no property and owner out of the pocket even more.

ROTFLMAO on you. Try harder.....atomic bomb....you 5 years old issit?

 

[xebay11]

By right if I buy something I should pay for it mah, but if someone is helping me to pay half of what I should be paying in the first place, then I see it as he financing my purchase partly lor. There is really no charity here since he is paying me rent, and if he spoils things he has to make it up according to tenancy agreement lor.

My dear friend, many tenants default and run away with huge destruction of property that even rental deposit cannot cover. Read my post to eric3417 on how one may actually end up with bigger loss than tenants