I think $24k is the right version. There is a land tax and a property tax, based on some strange number but they will cost not more than $1k RM a year. You also need to factor in security and maintenance which is about $200 RM for landed and x2 or x3 times higher for condo with good facilities. Then there are indah water bill, water bill, electricity bill etc :*:
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Iskandar -- Now is the time to invest in or it's overhyped?
- Thread starter sgcount
- Start date
I think $24k is the right version. There is a land tax and a property tax, based on some strange number but they will cost not more than $1k RM a year. You also need to factor in security and maintenance which is about $200 RM for landed and x2 or x3 times higher for condo with good facilities. Then there are indah water bill, water bill, electricity bill etc :*:
Buy Iskandar should not be on rent (apply to all msia cities except klang valley). It should be about chopping that corner location for long term appreciation, a carpark to park your cheap SUV, or a storage space for that bulky baby cot you don't want to throw.
Talk about rent, say you have a high-end place at market price RM5k lease...and no one in hell going take take that. What if you take half price RM2.5k...in this case you still get a property of appreciating value in the long run and pay half the mortgage.
The thing with rental....there is always demand....price is deterrent of demand.
as i mentioned before, you guys (ie foreigner) will be more disadvantaged becos of the 500k RM base price (going to be 1M soon?) i have a relation just got her condo in subang jaya KL.. rented 1200RM, cost 230K RM. that's better than 5% yield based on quick estimate.
for prop priced > 1M now, your target cannot be local demand. for prop btw 500-1M, can only hope to cover bank interest. and prepare to wait long time for tenants too. So your holding really need to be strong. btw, i'm talking general cases here, ok. If your neighbour house staying 10 mega hot babes who always suntanning next door in bikini, your house rental may be very high.
and about KL. again not 100% accurate. landed house rental yield in KL super sux! it is worse than JB house.
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But at least yours is for moving into your new JB home right?
FHBH12: Good idea.
Yes, can't wait to move in already! But reno haven't start. :(
Already reno quote is RM90K. Hoping to do it for less than RM70K but looks quite impossible....haiz
Wahhhhh..... :( I'm just beginning to realize there are many other costs I have not factored in when calculating whether it's ok to invest in Iskandar (for myself based on my finances).
Quite substantial... especially if I'm not expecting to collect rent for the 1st few years. And also, I don't have DIBS benefit, so bank loan interest starts in a year or so. Rumours saying their interest rates may go up next year! Already so high.... can't imagine if it hits 4.5% or more.
Haha... Like your hot babes part.
Ok seriously... that's the thing. Not sure must wait how long to get tenants. Wait longer, more condos and houses will be built -> even stiffer competition. Not sure if can even sell after 10 years. Read some people say their Malaysian properties bought more than 10 years ago have appreciated in price but even if they try to sell lower, no buyers are interested!
This can also happen to Iskandar?
Wahhhhh..... :( I'm just beginning to realize there are many other costs I have not factored in when calculating whether it's ok to invest in Iskandar (for myself based on my finances).
Quite substantial... especially if I'm not expecting to collect rent for the 1st few years. And also, I don't have DIBS benefit, so bank loan interest starts in a year or so. Rumours saying their interest rates may go up next year! Already so high.... can't imagine if it hits 4.5% or more.
high?
http://www.blr.my/Historical BLR Graph.htm
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Haha... Like your hot babes part.
Ok seriously... that's the thing. Not sure must wait how long to get tenants. Wait longer, more condos and houses will be built -> even stiffer competition. Not sure if can even sell after 10 years. Read some people say their Malaysian properties bought more than 10 years ago have appreciated in price but even if they try to sell lower, no buyers are interested!
This can also happen to Iskandar?
Land big big, houses big big, landed properties and condos plenty everywhere and more being developed, so I think all these add to difficulty to sell. Singaporeans still prefer to buy first hand IMO. So unless your unit is really next door to CIQ, like Astaka or right smack in the middle of the action, I believe it will not be easy to let go. Best option is to live in it and enjoy the property, unless of course your landed or condo back in Singapore even more luxurious.
http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=978108
Proposed High-speed Rail Link To Be Finalised At Next Year's Leaders' Retreat
SINGAPORE, Sept 17 (Bernama) -- The proposed High-Speed Rail Link connecting Singapore and Kuala Lumpur is expected to be considered and finalised during the Leaders' Retreat early next year, says Malaysian High Commissioner to Singapore Datuk Husni Zai Yaacob.
He said Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong, who meet annually at the Leaders' Retreat, are scheduled to meet again early next year in Kuala Lumpur.
At their last retreat here in February, both leaders announced their agreement to embark on the project, which upon completion in 2020, will reduce travelling time between Kuala Lumpur and Singapore to only 90 minutes.
"The high-speed train plan is now in its initial stage where technical studies are being conducted by the Land Public Transport Commission (SPAD).
"SPAD said they are analysing the technical studies and hopefully by the end of this year, they will meet their counterpart to discuss technical aspects of the high-speed rail," Husni Zai told Bernama in an interview.
He explained, the project was very technical in nature.
"This is because it involved two countries, you have to know first the alignment, the stations and of course the border, which routes to be taken, in terms of costing and sharing of cost.
"So there are a lot of aspects, before we can finalise the plans and bring forward to the leaders at their upcoming retreat in Malaysia.
"Hopefully by the next Leaders' Retreat, we would be able to come up with some considerations and a decision, said Husni Zai.
Touching on the progress of the Rapid Transit System linking Johor Bahru and Singapore, he said: "The RTS is also on-going, the technical aspects of it are still being looked into by both authorities".
Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar will attend the Joint Ministerial Committee (JMC) meeting for Iskandar Malaysia in Singapore on October 18.
There are five working groups for the committee which would brief and update the JMC on latest developments including the RTS.
-- BERNAMA
Proposed High-speed Rail Link To Be Finalised At Next Year's Leaders' Retreat
SINGAPORE, Sept 17 (Bernama) -- The proposed High-Speed Rail Link connecting Singapore and Kuala Lumpur is expected to be considered and finalised during the Leaders' Retreat early next year, says Malaysian High Commissioner to Singapore Datuk Husni Zai Yaacob.
He said Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart Lee Hsien Loong, who meet annually at the Leaders' Retreat, are scheduled to meet again early next year in Kuala Lumpur.
At their last retreat here in February, both leaders announced their agreement to embark on the project, which upon completion in 2020, will reduce travelling time between Kuala Lumpur and Singapore to only 90 minutes.
"The high-speed train plan is now in its initial stage where technical studies are being conducted by the Land Public Transport Commission (SPAD).
"SPAD said they are analysing the technical studies and hopefully by the end of this year, they will meet their counterpart to discuss technical aspects of the high-speed rail," Husni Zai told Bernama in an interview.
He explained, the project was very technical in nature.
"This is because it involved two countries, you have to know first the alignment, the stations and of course the border, which routes to be taken, in terms of costing and sharing of cost.
"So there are a lot of aspects, before we can finalise the plans and bring forward to the leaders at their upcoming retreat in Malaysia.
"Hopefully by the next Leaders' Retreat, we would be able to come up with some considerations and a decision, said Husni Zai.
Touching on the progress of the Rapid Transit System linking Johor Bahru and Singapore, he said: "The RTS is also on-going, the technical aspects of it are still being looked into by both authorities".
Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar will attend the Joint Ministerial Committee (JMC) meeting for Iskandar Malaysia in Singapore on October 18.
There are five working groups for the committee which would brief and update the JMC on latest developments including the RTS.
-- BERNAMA
Hey yah, very good point. I also observe that.
In Singapore, buying resale is very common, whether resale condos or HDB flats which are 30 years old. Still can command good price. In Malaysia, I think buyers (especially Singaporeans?) are looking out for new developments. I think also because in Malaysia, the maintenance of condos is not as good. Some after a few years, looks run down already. And yes, huge land.. until come one day, when land becomes scarce in JB. Dunno when... 2050?
Hey yah, very good point. I also observe that.
In Singapore, buying resale is very common, whether resale condos or HDB flats which are 30 years old. Still can command good price. In Malaysia, I think buyers (especially Singaporeans?) are looking out for new developments. I think also because in Malaysia, the maintenance of condos is not as good. Some after a few years, looks run down already. And yes, huge land.. until come one day, when land becomes scarce in JB. Dunno when... 2050?
For Singaporeans it is always NEW NEW NEW, 新加坡人 is want 新 新 新 !
Hey yah, very good point. I also observe that.
In Singapore, buying resale is very common, whether resale condos or HDB flats which are 30 years old. Still can command good price. In Malaysia, I think buyers (especially Singaporeans?) are looking out for new developments. I think also because in Malaysia, the maintenance of condos is not as good. Some after a few years, looks run down already. And yes, huge land.. until come one day, when land becomes scarce in JB. Dunno when... 2050?
Looking at land size play very small factor in commercialize housing era. Gov and Developer will manipulate supply-demand to ensure profitability.
Another key...if you chop orchard road in the 70s/80s, Paya lebar new abundance supply of land may come....doesn't matter...you still owned orchard road. So chop that strategic corner location is very important.
I was advised to avoid corner units due to higher risk of burglary. But I really fancied the corner units! Maybe next time when the corner unit is right next to Guard House, if there ever will be a next time for me.....
Iskandar from a Singapore homebuyers’ perspective
Three reasons why property buyers from Singapore have shunned Iskandar in the past include: 1) concerns over safety; 2)
the lack of infrastructure; and 3) concerns over execution. The lack of visible developments in the area, coupled with the property up-cycle seen in Singapore in 2006-2011, has convinced Singapore property investors to remain largely focussed on the island – until now. The entrance of Khazanah (via UEM Land) in 2005 marked a tangible commitment from the Malaysian government to make Iskandar work. We believe the buy-in from the Malaysian government boosted the confidence of Singapore property investors on Iskandar. The muchimproved bilateral ties between the Singapore and Malaysian governments also helped to a certain extent.
What transpired in the last seven years was a visible improvement in infrastructure development and execution. Local developers have stepped up efforts to build houses. The construction of LegoLand, Puteri Harbour Theme Park and numerous education institutions was also completed recently. This, in turn, should spur more housing developments as plans to build LRT, MRT, tram, monorail and ferry transports are set in motion. We believe the proposal to link the Singapore MRT system with Iskandar by 2018 will be the key potential kicker for more Singaporean demand.
While there are no official statistics on the trend of Singapore buyers in Iskandar, our ground checks suggest the proportion has been rising. Horizon Hills, an upmarket landed housing development, has circa 45% of its takeup coming from foreigners, of which 80% are Singaporeans.
What can Iskandar offer?
The biggest attraction of Iskandar for Singapore property buyers is price. Singapore property prices are now above their historical highs (up circa 45% from 2008) which has prompted the government to introduce stringent measures to curtail investment demand. While average prices at Iskandar have also more than doubled since 2008, current house prices remain 4-8x lower than that of Singapore. This only takes into account entry-level prices in Singapore. On a like-for-like basis, the price differential can be even starker. For example, a prime bungalow of 15k sq ft built-up area will cost around US$18m in Singapore. For that amount, buyers will be able to buy more than 10 equivalent units at Horizon Hills, Iskandar. We believe the rising cost of living and unattractive yields in Singapore are starting to channel some genuine and investment demand offshore.
Given the close proximity of Johor and the expected improvement in connectivity between Johor Bahru and Singapore,
Iskandar will be a natural choice for Singapore property buyers. Property buyers tend to invest in regions that they understand. The close proximity as well as cultural and demographic similarities are likely to convince many Singaporeans to deploy their investment capital into Iskandar, in our view. We see an increasing number of Singaporeans now opting to stay in Johor Bahru and commute to Singapore for work. With its strong Singapore dollar, the Singaporeans have the capacity to purchase a larger property in Malaysia at less than half the price of a Singapore flat.
(Extract From Terence Wong, Head of Equity Research, CIMB Malaysia)
For whole article http://www.malaysiapropertyinc.com/pdf/PQ Issue 4_2013.pdf
Three reasons why property buyers from Singapore have shunned Iskandar in the past include: 1) concerns over safety; 2)
the lack of infrastructure; and 3) concerns over execution. The lack of visible developments in the area, coupled with the property up-cycle seen in Singapore in 2006-2011, has convinced Singapore property investors to remain largely focussed on the island – until now. The entrance of Khazanah (via UEM Land) in 2005 marked a tangible commitment from the Malaysian government to make Iskandar work. We believe the buy-in from the Malaysian government boosted the confidence of Singapore property investors on Iskandar. The muchimproved bilateral ties between the Singapore and Malaysian governments also helped to a certain extent.
What transpired in the last seven years was a visible improvement in infrastructure development and execution. Local developers have stepped up efforts to build houses. The construction of LegoLand, Puteri Harbour Theme Park and numerous education institutions was also completed recently. This, in turn, should spur more housing developments as plans to build LRT, MRT, tram, monorail and ferry transports are set in motion. We believe the proposal to link the Singapore MRT system with Iskandar by 2018 will be the key potential kicker for more Singaporean demand.
While there are no official statistics on the trend of Singapore buyers in Iskandar, our ground checks suggest the proportion has been rising. Horizon Hills, an upmarket landed housing development, has circa 45% of its takeup coming from foreigners, of which 80% are Singaporeans.
What can Iskandar offer?
The biggest attraction of Iskandar for Singapore property buyers is price. Singapore property prices are now above their historical highs (up circa 45% from 2008) which has prompted the government to introduce stringent measures to curtail investment demand. While average prices at Iskandar have also more than doubled since 2008, current house prices remain 4-8x lower than that of Singapore. This only takes into account entry-level prices in Singapore. On a like-for-like basis, the price differential can be even starker. For example, a prime bungalow of 15k sq ft built-up area will cost around US$18m in Singapore. For that amount, buyers will be able to buy more than 10 equivalent units at Horizon Hills, Iskandar. We believe the rising cost of living and unattractive yields in Singapore are starting to channel some genuine and investment demand offshore.
Given the close proximity of Johor and the expected improvement in connectivity between Johor Bahru and Singapore,
Iskandar will be a natural choice for Singapore property buyers. Property buyers tend to invest in regions that they understand. The close proximity as well as cultural and demographic similarities are likely to convince many Singaporeans to deploy their investment capital into Iskandar, in our view. We see an increasing number of Singaporeans now opting to stay in Johor Bahru and commute to Singapore for work. With its strong Singapore dollar, the Singaporeans have the capacity to purchase a larger property in Malaysia at less than half the price of a Singapore flat.
(Extract From Terence Wong, Head of Equity Research, CIMB Malaysia)
For whole article http://www.malaysiapropertyinc.com/pdf/PQ Issue 4_2013.pdf
Haha "corner location" I mean that strategic location, not unit.
Oh I see, sorry wrong number lah!
Haha... Like your hot babes part.
Ok seriously... that's the thing. Not sure must wait how long to get tenants. Wait longer, more condos and houses will be built -> even stiffer competition. Not sure if can even sell after 10 years. Read some people say their Malaysian properties bought more than 10 years ago have appreciated in price but even if they try to sell lower, no buyers are interested!
This can also happen to Iskandar?
to be fair to malaysian property .. most of my family, relative and friedns all make money from property over the years. this is true, i swear not making it up. the only one good friend who lost money is a commercial prop and because of change of road/zone planning by authorities. as house price generally move up (inflation, currency dropping, etc), unless one buys a complete dud or developer run road, eventually can get profit. you can't compare rentals with singapore - singapore is so congested and easy to get a tenant. the one caveat i may want to add to the above, most of them did buy from developers (ie first hand, off plan) and they hold for medium to long term. tenants, sometimes we do have to wait a long time. and disposal too. but things eventually turn out ok.
10 year near historical high. yes. but looks likely to go higher now with the weakening of ringgit.
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corner lot more worth it in terms of psf. my house intermediate lot is 430RM psf. The corner lot is 290RM psf.
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Their income will doubled based on how intense UMNO value their face (dignity) by 2020
This is an interesting scenario that I think it's worth exploring the possibility.
If we assume salary will double in 5 years, we are looking at an average of 15% increment annually. Now, I wonder if any employer will be this generous. But assuming the government is willing to do this (well, Budget 2012 saw the increase of civil servants' pay by up to 13%), the 1.4M civil servants will have their current pay of say RM50k doubled to RM100k. That means, from the RM45B that goes into the civil servants' coffers annually, the government will have to pay RM90B!
Now, Malaysia's 2012 GDP figures were USD300B, or roughly RM940B. At an average rate of 4.64% of GDP growth annually, we derive a GDP of RM1,180B in 5 years. So, the public servants' pay to GDP ratio balloons from 4.78% to 7.63%! In 5 years! I highly doubt any government can sustain this sort of pay growth.
And even if we assume the government becomes generous overnight, prices of goods and services will have to commensurately increase so that GDP will catch up. Annual inflation of a historic high of 15% will rear its ugly head. Not yielding in the rat race, banks will increase their BLR. At 15% increase annually, the 4.4% home loan rate becomes 8.9%! Our RM3k loan (assuming RM600k loan for 30 years) explodes 66% to a whopping RM5k monthly!
Back to property. Developers will be hit with increasing costs of labour, materials and land. They will raise the prices of their development accordingly. And guess what? In 5 years, property prices doubles in price!
So, you have correctly pointed out that we have to take "future price" into account. But don't forget to "future price" the property too. All things being equal, when local income doubles, property prices will double correspondingly. We will be back to square one.
In conclusion, do I think income will double? Yes, but maybe in 20 years. Will the majority be able to afford RM1M property? Sure. But by then, RM1M property will only be PR1MA housing, and our RM800k condo investment will be worth RM4M! Hooray! ;D
So what is the conclusion?
Buy a little, buy many or just watch?
Buy a little, buy many or just watch?
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