Iskandar -- Now is the time to invest in or it's overhyped?

[shctaw]

I never expect to buy into JB; but when I see a billionaire move in.... I follow.

http://investjohor.wordpress.com/20...er-lim-johor-royalty-to-build-jb-medical-hub/

I am not interested in Iskandar as a whole; I only buy JBCC only.

 

[graveyard]

At the end of the day go in with eyes open. The nay sayers have their points and so does the positive folks.
For Singaporeans it is after all a foreign land with similar yet different conditions to Singapore. To SPR enjoy the benefits of both.

SPR used to enjoy best of both worlds .. we still do abeit to a much lesser extent in SG especially when it comes to housing with all the new rules that apply to SPR/foreigners. But this is fair to the Sporeans and is a right move by the SG govt. if one day MY govt decides to allow foreigners to purchase ppty valued at <500k ringgit, I wouldn’t be too happy too (though considering today’s prices, the rule has limited cooling effectiveness but if I were aiming for a house in the far outskirts costing RM300K, it makes a difference assuming Sporeans are equally interested in buying in that area)

 

[malpaso]

Malaysia does not have a good record with maintenance. However they have improved and things are progressing.
North south highway is like 20 yrs old and well kept in my opinion.
.

NS highway is maintained by private. check out tebrau 'highway' for a more representative example.

 

[aliensmotor]

Should widen the tebrau hway , more organise and straight

NS highway is maintained by private. check out tebrau 'highway' for a more representative example.

 

[sgcount]

When it comes to investment, where is there such a thing as sure guaranteed type? If anyone has that kind, please let me and the rest know. Even in life and death, who can predict when or how? So what more with investment?

Anyone who says Iskandar looks very promising, can't fail, should rethink carefully.

Anyone who says it's stupid to buy into Iskandar because it's sure to fail, then please suggest where else is better without any other forms of downsides.

Every investment has risks, it's just whether you can accept them or not, depending on your financial background and appetite.

It's usually after something good happens that people say "Aiyah, I should have invested back then! If now is like last time, I sure buy 3 or 4 properties!" But...really? Did you even dare make the first move BACK THEN if you had the chance? Bet it could still be risky to you also.

Back then, there were the loud mouths who acted like experts and said Stupid if you buy Iskandar. So unsafe, all empty, no inhabitants. Cheap, ya, but so what? Sure lose money. Now where are these people??? Probably still poking around in forums saying nothing is worth investing because there are risks! But who have the last laugh now?

As someone wisely pointed out, go in with your eyes wide open. Crossing the road can also be dangerous. Can be knocked down by a car, sometimes even when you are careful. So you must know what to do, how to prevent it, and in the event you meet with an accident *touch wood* do you have, for eg, insurance?

The big problem is when you go in blindly cos everyone around tells you Iskandar is good. It's not necessarily so. RISKS, RISKS, RISKS! They are everywhere.

 

[freedom]

I am still far from the official retirement but after reading the article in Sunday Times yesterday, it makes one wonder stress follows Sinjgaporean even after retirement. Downsize and downgrade are the keywords for retirees. I am not surprised that there will be more moving to iskandar for those retiring in next 5-10 years, if iskandar succeeds in its plan.

Agree...so many who used to stay condo or landed have to sell and buy a resale 3 room or even studio hdb and take public transport in their retirement years. That seems to be the only way the middle income can retire comfortably in singapore. If they want to retire in a landed house and drive car, most likely have to do so in jb.

 

[potter]

Agree...so many who used to stay condo or landed have to sell and buy a resale 3 room or even studio hdb and take public transport in their retirement years. That seems to be the only way the middle income can retire comfortably in singapore. If they want to retire in a landed house and drive car, most likely have to do so in jb.

upsize is only 50 cts. dun follow e many.

 

[freedom]

upsize is only 50 cts. dun follow e many. View attachment 12269

huh, very cheem, what do u mean?

 

[potter]

huh, very cheem, what do u mean?

downsizing, poor become poorer. so avoid.

 

[freedom]

downsizing, poor become poorer. so avoid.

Yeah, the thought of downsizing also makes me depressed....still best to retire here, with freehold landed and cheap cars. Only thing is the security must be improved...

 

[alnine]

Yeah, the thought of downsizing also makes me depressed....still best to retire here, with freehold landed and cheap cars. Only thing is the security must be improved...

A few years back if I am not mistaken a minister advice Singaporeans to go to old folks home in JB. So not far off to retire there. Cars there are correctly price, cars in Singapore are over taxed.

Just from various forum it seems the old beside woman are targets for criminals. So security is a major problem and even if you have a secure GnG home, you may fear going out after dark. For me after 8 pm I avoid topping up my car and drive back to Singapore unless I past a well used petrol station like the one before the CIQ on 2nd link.

I know of a SPR technician who worked in the NS factory in Toa Payoh retired in Malaysia ( Malacca ) some years back comfortably. Besides security, there is also a need for convenient and economical medical services. He complained about missing the Singapore medical services even though he grew up in Malacca. After 30 years working in Singapore he got used to our system. Although we see people complained about the long queues I guess overall it is much better than Malacca. Not sure about JB and if the new medical facilities in Nusajaya will be really world class with earthly pricing.

 

[LeMans2011]

I look at it this way. You may not want to just look at the affordability of the properties to the local Johoreans! Iskandar is a different place than say Penang or Ipoh, where that assessment is more applicable. It is next to Singapore which makes it a totally different ballgame. There are reportedly about 1/2 million Malaysians working in Singapore, and more Singaporeans and expatriates in Singapore are also now more prepared to stay in JB and travel to Singapore to work daily. There are already in fact many who are doing just that. This is a large pool of people for potential property market there, not to talk about people from China, Japan and other countries who have also started to purchase properties in Iskandar.

What it means is make sure your properties purchased are high-end and at choice locations which are attractive to this group of people for both sale and rental in near future. You cannot depend on local residents. Most of them can't afford these properties. But JB is just next to a global city currently with 5.3 million residents, many of whom can easily afford to buy or rent these properties with Ringgit so low. It is also on the radar screen of international investors because of its proximity to Singapore. Besides there are already also expatriates in the Pasir Gudang industrial area paying good rentals for good properties. The commercial and educational and medical facilities planned for Nusajaya side hopefully will also attract more expatriates for the rental market in future. The picture is thus not that unfavourable even for rental market, provided of course your properties are attractive and at good locations. Of course, if and when the MRT really connects to JB (?), the picture should be even rosier.

I tend to agree with your measured optimism.

 

[rotikok]

You've done it again!! All the careful analysis with figures and all that. You sure you're not a statistician? Well, at least a mathematician maybe? Or otherwise someone who is meticulous or organized. haha...

The last part on income rise but property rise also is so very true. Remember back in those days when people here so often talked about the 5C's? One of the Singapore dreams was to be able to own a condo. It's no longer mentioned any more cos it's so damn expensive now. The salary a graduate earns today is so much higher than what our parents did last time. But now, the condo prices here are what mainly the rich can afford. Difficult for a normal graduate to afford it even after working for many years. So pay is higher now for graduates, but condo prices are even wayyyyy higher!

HDB flats of today can cost more than condos not so long ago. Ironic. We are constantly chasing.... All those talk by teachers about graduates having better life for being educated is not entirely true. I think their less educated parents who earn much less and can afford a condo back then are more blessed.

Opps.. some ramblings... I've gone off-course.

Is quite ironic in the sense that when a country economy progress, we should expect affordability improve however thing happened totally the other way. E.g. now east timor (or sg 40-60 yrs ago) still poor, economy backward, if being a graduate and work over there, overtime you will be the elite in the country coz graduate in any area is highly sought after in the country. However 30-40 yrs down the road, graduate started to churn out fast, value of graduate decrease in the same rate as it produce. At the means time those establised class in the country started become rich and using money in non-productive way i.e. buy property in the name of investing when rental and ppty price is too far apart. Those rich, i.e. 30-40 yrs ago normal graduate with nothing, become capitalist class, while the new graduate become working class, working for the bank (pay loan) and for the rich for their comfort lifestyle. Problem with that is, wealth can be inherited, those capitalist class with their excess wealth can invest business or own more ppty for working class to rent or pay higher price to buy over from them. Rich will becoming richer while the late comer working class (with economy progress, they will be compiled mostly by graduate) with high student loan, high mortgage and others debt will have to work to have decent home, decent lifestyle, little extra disposable income. Since hard to have save and invest, they will be in working class spiral and hard to escape out from. Worse case scenario will be any prolong economic downturn they will be the most vulnerable class, barely survive decently. Yea... what i think government need to rethink capitalism in the way how do lead ppl to use their money in more productive way. If you compare 40 yrs ago commodity price, certainly it is cheaper today after adjusted to inflation, prove that capital being used in productive way. Certainly not ppty market when building a high rise is much easier nowadays compare 40 yrs ago. That is what happened in most nations nowadays. Think of it, if the money you spent allow to have more quantity in the market, then it is productive way (build more houses for example), if just higher the price up (factor out location issue), then it is unproductive way. If those capitalist class have this in mind, then coming working class in general will be better of with higher standard of living (less pricey ppty, less debt, more disposable income)

 

[FHBH12]

Is quite ironic in the sense that when a country economy progress, we should expect affordability improve however thing happened totally the other way. E.g. now east timor (or sg 40-60 yrs ago) still poor, economy backward, if being a graduate and work over there, overtime you will be the elite in the country coz graduate in any area is highly sought after in the country. However 30-40 yrs down the road, graduate started to churn out fast, value of graduate decrease in the same rate as it produce. At the means time those establised class in the country started become rich and using money in non-productive way i.e. buy property in the name of investing when rental and ppty price is too far apart. Those rich, i.e. 30-40 yrs ago normal graduate with nothing, become capitalist class, while the new graduate become working class, working for the bank (pay loan) and for the rich for their comfort lifestyle. Problem with that is, wealth can be inherited, those capitalist class with their excess wealth can invest business or own more ppty for working class to rent or pay higher price to buy over from them. Rich will becoming richer while the late comer working class (with economy progress, they will be compiled mostly by graduate) with high student loan, high mortgage and others debt will have to work to have decent home, decent lifestyle, little extra disposable income. Since hard to have save and invest, they will be in working class spiral and hard to escape out from. Worse case scenario will be any prolong economic downturn they will be the most vulnerable class, barely survive decently. Yea... what i think government need to rethink capitalism in the way how do lead ppl to use their money in more productive way. If you compare 40 yrs ago commodity price, certainly it is cheaper today after adjusted to inflation, prove that capital being used in productive way. Certainly not ppty market when building a high rise is much easier nowadays compare 40 yrs ago. That is what happened in most nations nowadays. Think of it, if the money you spent allow to have more quantity in the market, then it is productive way (build more houses for example), if just higher the price up (factor out location issue), then it is unproductive way. If those capitalist class have this in mind, then coming working class in general will be better of with higher standard of living (less pricey ppty, less debt, more disposable income)

This is already happening in Singapore. Many parents have been busy accumulating properties in the last few years, until the government recently puts a stop to it. Now it is very hard for a HDB upgrader to own another investment property. The slowdown in price increase now allows the rich some time to reload their bank account and buy up more properties. The not-so-rich ones better come over to Johor to buy first, else the Malaysia government also closes the gate in the next few months. Those who hold assets will win in this inflationary world and when US and Europe are starting to recover their economy.

 

[cow138]

With the rate of inflation through printing of easy money asset price inflation is the only game in town. Holding power is the key differentiator.

Have to go in provided the fundamentals are sound. Currently the Malaysia govt still have not raise the barriers of entry by much. Else later no choice want to buy also cannot.

 

[rotikok]

This is already happening in Singapore. Many parents have been busy accumulating properties in the last few years, until the government recently puts a stop to it. Now it is very hard for a HDB upgrader to own another investment property. The slowdown in price increase now allows the rich some time to reload their bank account and buy up more properties. The not-so-rich ones better come over to Johor to buy first, else the Malaysia government also closes the gate in the next few months. Those who hold assets will win in this inflationary world and when US and Europe are starting to recover their economy.

I want to counter on that, yes i think inflationary will continue to be the case is years to come, inflationary pressure in future more likely to be from china and developing markets that come from the region, as they r getting richer as day past, more credit growth, more money, esp yuan to be more important in the future. However, hold asset to combat inflation? It's depend on what type of asset, if productive asset that generate income, then hold more. Just beware of unproductive esp ponzi type asset that return and input of fund not proportional. Can only rely on purely capital gain and disregard asset return when you are sure that the asset u r holding ppl like it n will no matter what buy from u...or else play safe is what i suggest.

 

[FHBH12]

I want to counter on that, yes i think inflationary will continue to be the case is years to come, inflationary pressure in future more likely to be from china and developing markets that come from the region, as they r getting richer as day past, more credit growth, more money, esp yuan to be more important in the future. However, hold asset to combat inflation? It's depend on what type of asset, if productive asset that generate income, then hold more. Just beware of unproductive esp ponzi type asset that return and input of fund not proportional. Can only rely on purely capital gain and disregard asset return when you are sure that the asset u r holding ppl like it n will no matter what buy from u...or else play safe is what i suggest.

Good money generating assets like shoplots r v high risks to small investors. Stocks can plunge easily n most people lose money there. As long as economy n population r growing, capital appreciation is a given. Just don't be too greedy and ask for sky high rental at this point. Good location helps.

 

[cow138]

Good money generating assets like shoplots r v high risks to small investors. Stocks can plunge easily n most people lose money there. As long as economy n population r growing, capital appreciation is a given. Just don't be too greedy and ask for sky high rental at this point. Good location helps.

Yup that's a good reasoning. Buy cheap if possible good location and hold for long term. It's the only way to do so. Productive assets is too risky for small time investors. At least buy house can own stay. Buy shop lots if no one rent then cannot do much unless convert to do bird nest harvesting.

 

[Gardener]

Nice thinking

NS highway is maintained by private. check out tebrau 'highway' for a more representative example.

 

[rotikok]

Good money generating assets like shoplots r v high risks to small investors. Stocks can plunge easily n most people lose money there. As long as economy n population r growing, capital appreciation is a given. Just don't be too greedy and ask for sky high rental at this point. Good location helps.

You get me wrong...good residential can be productive too. If location good, surrounding limited supply, then it can be yielding asset too providing the price to get in is right. Like shoplot, small time investor oso use it for rental income n let other do the business, cant demand premium if shop user generate more income as surrounding shop limit the rent u can demand. Same thing applies to houses.
Just want to add some complexity into the thinking, under inflationary environment, buying house to combat inflation and possible capital gain is generally correct in land starved country like sg (factor out location), just want to warn ppl with excess money and always think that price will grow overtime thus house will too or even more. Dun constraint to that conventional wisdom. Is like ah gong ah ma said to u when small, bcome dr lawyer engineer so can b rich when grow up, thing will change and u cant rely on unchange wisdom.