I am going to write on this thread from an investor's POV - mine actually. It whatever investment I make, I need to be sure of my property rights. e.g. if I buy a piece of land and there are squatters on it and I can't chase them away or the police cant effectively keep them away then that piece of land is not mine. or if I stay in a unit next to the sultan but his body guards prevents me from inviting ktv gals in then, IMO, that apartment is worthless. these are some lousy examples that I am raising but I think most get the idea. LKY was right when he says that they can take it away "at a stroke of a pen". Protection of property rights is most important. what you cannot protect is not yours. this applies to everything - including your car, your watch and your woman or in some cases women. So does Malaysia provide the average investor with adequate property rights protection. Currently from the looks of it, I would say that the answer is YES! is the protection as safe as Singapore? Probably not. I would probably rank Malaysia after Thailand. But that's just me.
Next - what kind of returns does Iskandar offer? In all my investments, I believe in literally doing the ground work. i.e. you go on site, check on the soil quality, look at the surroundings, look at the neighbours, look at the infrastructure, study the demographics, understand the political situation, global money flows and interest rates, etc, etc. When it comes to property, I do not believe in being an armchair quarterback/keyboard warrior. Cos usually the investment amounts are rather significant. So my POV is, anything north of Taman Sentosa will enjoy slower rates of growth. I have said before that most Singaporeans prefer staying and shopping closer to the border. Of course there will be Singaporeans who venture further than the rest, but these are the outliers. There are Singaporeans living in Romania but you don't see me investing there.
So where to buy? JB Sentral is good. I am quite surprised at the vibrancy of JB Sentral. There is a lot of business activity going on. A lot of human traffic. Even with the growth of Nusajaya, human traffic did not seem to have been diverted. If they can get the synergy going between the few buildings surrounding City Square, it should be a very fun place to be.
Bukit Indah looks good too. Again, there is a lot of business activity. The restaurants while not full on weekdays, seem to get by. New ones are still springing up. The clean massage parlours are quite fully booked. Business is so good that they are beginning to "eat" my time. Avoid the SOB Wan Jia next to Giant. knn... also "eat" my time. pay for 60 mins but get only 45 mins of real massage. And the dirty ones seem busy too. The gals don't sms me to solicit my business. it seems they have their hands full, literally. this is a growth area. how fast? I dunno. I dun have a crystal ball. but for the long run (10 years) this place looks good.
so which is a better investment? well, it depends on your risk appetite. the way I see it, Nusajaya is a place for self stay - families. everything is more spacious and friendlier. I can see myself spending time there cos while I could get the same massage in Zone A, but after I am done with whatever work I have to do in Zone A, I would drive all the way to Zone B to get my fix - food and massages. upside would be slow but downside is limited since most ppl bought cheap and the early investors would have holding power and not likely to dump.
As for JB Sentral, I can visualise it in my head. stay in a condo, walk to CIQ, go to work in SG and at night just do the reverse. while not the lifestyle I envision for myself, I can see other ppl doing it. I might do it if I were single and still young. why not? it's the perfect lifestyle. Good food, amenities, entertainment, all within the block. Car not needed at all. Best of all, for investors, I see a relatively good rental market for the area. Prof is rite to be looking at this area for investment. For a punter (not that prof is a punter. I am saying "for a punter".), this place would probably record the fastest growth. Personally, I wouldn't buy this place cos I don't like the area. It is too messy for me. but its a personal choice. don't let my personal preference affect your business decision.
Medini. check out my previous postings. but in a nutshell, Medini is for the long haul. similar to Nusajaya.
next, interest rates. Investing in Iskandar is NOT FOR THE AVERAGE HDB FOLK. note that the key word is INVESTING. 80% financing at 4%+ financing is no laughing matter. borrowing 50k at 4% p.a. and borrowing 500k at 4%p.a. are very different matters. sometimes, ppl get caught up in all the hype and all they see is the 4% interest but not the 500k principal. a little leveraging is good. I am a huge believer in leveraging. without leveraging, I wouldn't be what I am today. but for heaven's sake, leverage within your means and according to your risk profile. I married late and had my child late so I was leveraged to the max until my early 30s, cos I had very little to lose and I could eat fishball noodle everyday. But now that I am married with a child and possibly more on the way, I cant make my family eat $2 fishball noodle everyday. my borrowings are down by half and would probably be down another quarter by end of next year. While making money is important, it is MOST IMPORTANT TO STAY ALIVE. if you stay alive, you live to fight another day.
so there you have it! my alcohol infused insights to investments in Iskandar. The potential upside is tremendous if they can get their act together. but that's a really big if. The Malaysian work culture and inefficiency is their biggest stumbling block. And to top it off, they have their Malay supremacy pride, which to me is pure rubbish; when you have money, you can have all the pride you want. when you have no money, you jolly well swallow your pride and work for it. unless of course, you have your private army or have nuclear bombs, but these too needs money...... so bottom line is, it all goes back to money.
some of the stuff I have typed down today are quite controversial so let the flaming begin. but whatever it is, I want all of us to make money and be happy. go ahead and use my views for reference, BUT PLEASE ALSO DO YOUR HOMEWORK!!!
