Hi all, I would like to hear from those who have bought homes in JB.... I know some of you bought a house for your own stay (perhaps seeing how ridiculously expensive small homes in Singapore can be!). But for those who have jumped on the bandwagon to buy a condo or house in Iskandar for investment, what are your thoughts about the prospect?
The reason I asked is that I have gotten very mixed replies from different groups of people property agents, the people in the streets, fellow Malaysian friends, property analysts, etc. Below is a summary of my "findings"
Pros (mainly from agents who are selling their condo projects!):
- Iskandar is an up and coming area where investors and the Malaysian government are pumping money into so it's a good time to invest.
- Prices of Iskandar properties will appreciate given the high demand for cheaper homes than Singapore.
Cons (from neutral parties I spoke to):
- Rental in JB ain't fantastic. No one in JB is going to pay so much for rent to cover your monthly bank loan instalment.
- It's too early to say how Iskandar will develop. This being Malaysia, there will be delays, political changes, etc which will affect the progress of Iskandar. In short, things are still uncertain. Risks are there.
- Property prices in JB now are just too expensive to be worth it for investment. Where it used to cost only RM300+ psf not long ago, now it's going for RM800+ and above.
- There will be so many condos and houses in Iskandar built in the next few years that renting them out is a challenge. Which implies selling them will be problematic too. You may be stuck with the property for a long time.
- Other than low rental yield, don't forget miscellaneous charges such as monthly maintenance fees, utility bills, and annual property tax that you have to pay.
- Laws can change suddenly in Malaysia and foreigners who buy properties there may be at disadvantage by paying more taxes.
- Bank loan interest rates in Malaysia are high and may increase even further.
What are some of your thoughts to the above? Thanks for sharing.
The reason I asked is that I have gotten very mixed replies from different groups of people property agents, the people in the streets, fellow Malaysian friends, property analysts, etc. Below is a summary of my "findings"
Pros (mainly from agents who are selling their condo projects!):
- Iskandar is an up and coming area where investors and the Malaysian government are pumping money into so it's a good time to invest.
- Prices of Iskandar properties will appreciate given the high demand for cheaper homes than Singapore.
Cons (from neutral parties I spoke to):
- Rental in JB ain't fantastic. No one in JB is going to pay so much for rent to cover your monthly bank loan instalment.
- It's too early to say how Iskandar will develop. This being Malaysia, there will be delays, political changes, etc which will affect the progress of Iskandar. In short, things are still uncertain. Risks are there.
- Property prices in JB now are just too expensive to be worth it for investment. Where it used to cost only RM300+ psf not long ago, now it's going for RM800+ and above.
- There will be so many condos and houses in Iskandar built in the next few years that renting them out is a challenge. Which implies selling them will be problematic too. You may be stuck with the property for a long time.
- Other than low rental yield, don't forget miscellaneous charges such as monthly maintenance fees, utility bills, and annual property tax that you have to pay.
- Laws can change suddenly in Malaysia and foreigners who buy properties there may be at disadvantage by paying more taxes.
- Bank loan interest rates in Malaysia are high and may increase even further.
What are some of your thoughts to the above? Thanks for sharing.