Iskandar Residences @ Medini

[xebay11]

The crux of the story is you need Guts to invest in a foreign country. To have those Guts, you need experience.
If you are balless, then stay at home.

Good God, I left my balls in Melbourne lol!

BTW you don't just need balls or guts to invest in Malaysia, you really need street smarts to know the finer points.

 

[Frodo]

How do you take out an 80% loan and AT THE SAME TIME put another 80% cash in a current account? Does it mean you loan from the bank RM640k, but at the same time, put another RM640k in a current account?

Firstly, you will need that much cash to put in the current account. For a "poor chap", where to find RM640k cash upfront? Secondly, you are still essentially using a lump sum to pay off the loan amount, just indirectly. Your interest may be zero but you are locking up the money in the current account in order to avoid paying interest.

Actually, there are people who will outright pay cash. S$270k is not really a lot to a millionaire. They don't dump everything but pay progressively within 3-4 years. It's not worth to pay the 4.5% bank interest on such a small amount.

This is a condo in Medini forum. That's why we're at it. If it's somewhere else, of course, it's a different story. Why would I pay RM800k on a Medini condo when I know a condo beside mine paid only RM500k for the same size? I would also consider buying a landed property with that kind of money.

There you have it! RM500k for a landed house in Eco Tropics! So cheap? I might buy it too if I were to retire any time soon. Why buy an overpriced condo with no amenities, no rental and resale value?

Yes, rich people will pay cash to buy properties, but it is “disgusting” to talk about such people. LOL! And since most “poor chaps” do not have hard cash of $270K for investment, it would be a moot point to say that this money would have been better placed in a MY fixed deposit account to earn interest. Now, assuming really have $270K hard cash, yes, money will be locked up in the Current Account to avoid paying interest, but every month there will be money freed up from the current account because the loan amount will be reduced each month. If you loan RM500K you do not need to keep RM500K in the current account for the full 25 years, right?

 

[Tekkun]

Good God, I left my balls in Melbourne lol!

BTW you don't just need balls or guts to invest in Malaysia, you really need street smarts to know the finer points.

For me, no street smarts. Just plain guts and stupidity.
But after investing, don't go around complaining like you bought a bad lemon.

 

[ECboy]

Not sure if any of the critics posting so far are Millennials or Strawberry generations. Their thinking are known to be drastically different from the baby boomers, even gen X. Many biz have to rethink and redevelop their strategies. How many of the expert analysis based on extrapolation from the past will hold true is anybody's guess.

I might be the only Gen Y here, from what i read in the past threads. Everyone has their needs and wants, if you think JB is good then come, no, then don't come. I have worked in SG for 9 years and i'm native JB kia, i can tell you, i can't wait for my condo to complete to move in next year. Its probably equivalent to a HDB in SG (at best) but half the price (with facilities).

 

[sgcount]

Yes, rich people will pay cash to buy properties, but it is “disgusting” to talk about such people. LOL! And since most “poor chaps” do not have hard cash of $270K for investment, it would be a moot point to say that this money would have been better placed in a MY fixed deposit account to earn interest. Now, assuming really have $270K hard cash, yes, money will be locked up in the Current Account to avoid paying interest, but every month there will be money freed up from the current account because the loan amount will be reduced each month. If you loan RM500K you do not need to keep RM500K in the current account for the full 25 years, right?

Not so simple I think.

For progressive payment, the bank will disburse lump sums along the way. The interest will start from the 1st disbursement. So one needs to keep pumping in the same amounts disbursed in Current a/c.

When the property is completed and the full loan is disbursed, say RM500k, you need this very large sum in the a/c also. Thereafter, it's a few k being deducted every month for the next 20,25 years? That's a very long time.

So if you buy for your own use, maybe it's ok. I used to think of using the property for investment. But after checking around, realize it's not easy to find tenants. So got to change perspective and plan now.

 

[Frodo]

Not so simple I think.

For progressive payment, the bank will disburse lump sums along the way. The interest will start from the 1st disbursement. So one needs to keep pumping in the same amounts disbursed in Current a/c.

When the property is completed and the full loan is disbursed, say RM500k, you need this very large sum in the a/c also. Thereafter, it's a few k being deducted every month for the next 20,25 years? That's a very long time.

So if you buy for your own use, maybe it's ok. I used to think of using the property for investment. But after checking around, realize it's not easy to find tenants. So got to change perspective and plan now.

But if the loan tenure was for 25 years, it would have factored in the interest, right? So since there is no interest, wouldn't it be just principal being deducted, and maybe can even end up paying off earlier? Or maybe I am wrong...as I am not exactly sure how it works. pai seh ah.

 

[sgcount]

But if the loan tenure was for 25 years, it would have factored in the interest, right? So since there is no interest, wouldn't it be just principal being deducted, and maybe can even end up paying off earlier? Or maybe I am wrong...as I am not exactly sure how it works. pai seh ah.

The amount deducted is principal+interest. It's just that you earn the same interest from your current account to offset the interest you lose in the loan. So in that sense, you don't pay any interest.

But by the time the property is completed, it means the bank will have released the full property cost to the developer. You must have the same full amount in the a/c in order not to be charged extra on the interest.

So you still need to fork out that lump sum of money if you want to avoid paying interest. That's tough for owners with less upfront cash. Of course, you can withdraw that lump sum or part of it if you have urgent need to use the money along the way. But once you do that, your interest starts kicking in.

Maybe that's why some here have said, don't loan from bank if you buy a Johor property. The interest is high.

Or if you must, rent in Johor instead of buying because of the negative returns from an investment point of view.

They all have their own merits.

 

[Frodo]

The amount deducted is principal+interest. It's just that you earn the same interest from your current account to offset the interest you lose in the loan. So in that sense, you don't pay any interest.

But by the time the property is completed, it means the bank will have released the full property cost to the developer. You must have the same full amount in the a/c in order not to be charged extra on the interest.

So you still need to fork out that lump sum of money if you want to avoid paying interest. That's tough for owners with less upfront cash. Of course, you can withdraw that lump sum or part of it if you have urgent need to use the money along the way. But once you do that, your interest starts kicking in.

Maybe that's why some here have said, don't loan from bank if you buy a Johor property. The interest is high.

Or if you must, rent in Johor instead of buying because of the negative returns from an investment point of view.

They all have their own merits.

Oh.....Is it also the case that if you had money parked in current account it would have been treated as a reduction of principal and thus pay lower interest?

 

[FHBH12]

My friend whose friend is an agent sent me this picture, taken just in front of 1 Medini.

You can see how damn huge amount of land they have out there. Probably can build a few tens of thousands more condo units in the next 10-15 years to rival the present batch of condos.

This is really a nice view, at least this is how new launch condos are shown surrounded by lush greenery in brochures in Singapore.

 

[ECboy]

This is really a nice view, at least this is how new launch condos are shown surrounded by lush greenery in brochures in Singapore.

Is that Pinewood Studios? If it is, they own a HUGE piece of land there for filming. If you watch Marco Polo on Netflix you will know what I mean.

 

[snowbird]

Oeiii.. why you so bad bad one?! Pour cold water. :(

I don't know much about how the Hong Kong citizens feel regarding HK-SZ. But we can't say Singaporeans will feel the same in future also. We can't predict till so far. But I feel there are strong signs to show the strains.

Generally people in SG are already complaining how overcrowded the whole place is. It's so bad I don't even want to go out sometimes. Want to eat out also must sometimes queue for like 20 mins. Can't even walk in a straight line.

BTO 4 room HDB flats already start to cost S$400k and above. Better location ones are priced S$500+k to over S$600k. DBSS flats like condos without the facilities already hit over S$1mil. 5-rooms are now selling on average about S$900+k. These are public housing leh!!!

Singapore has become too successful due to the government's greed and is a victim of its own success. Many commoners will find it hard to survive next time.

If you project this down to 2025 or 2030, you will see it won't get better. How to when there is no more land in SG?

So when the transport network improves, it is not a fairytale to expect many Singaporeans moving over. Even MNCs from Singapore will relocate to Medini or other parts of Iskandar.

I feel that Khaw Boon Wan was testing water when he once commented how cheap the old folks homes are in Johor. Singaporeans were furious so he didn't want to say any more. He was probably hinting going over to Johor is a viable solution in future.

Why do you think the government allows our Medisave to be used in 2 hospitals in Johor? That's also another hint. Gleneagles won't be so stupid to set itself up in Medini for nothing. The show will come 7-10 years time.

In the end, the government's stand is, let the rich come and remain in Singapore. It will become like Tokyo, New York, London, Paris. The commoners have no choice but to "spill out" into Johor.

If you ask your friends who live in those big cities overseas, you will see that commoners all live in the suburbs and take 1 hr by train to work in the cities. Our suburbs in future will no longer be Sengkang/Punggol or Sembawang. It's Iskandar.

Hello, what pouring cold water!
Accept reality and the hard facts and stop day dreaming.
HK /SZ is a living example for reference right in front of you..
The only difference is SZ is so much and well developed that within such a short time, it has a stock market and financial centre, an impressive and extensive subway and road works, public transport which JB is never near there.

However, still, there are tens of thousands of Hongkongers still flocking over to SZ in the evenings and every weekends for cheap massage, cheap Karaoke, movies, shopping for cheap groceries and counterfeits, which is exactly what JB is exactly offering now to attract visitors - cheap massage, cheap Karaoke, cheaper movies, cheaper groceries and counterfeit DVD (RM10 for 3 for the latest blockbusters).
And yes, SZ also offers cheaper home for the age and medical consultation and rehabilitation.
Is this the kind of success you are expecting?
Maybe in time to come, there will be another 100 massage parlours opening in JB to cater for the "boom" but however, JB will still be the same JB but with many more massage joints and a few more shopping malls.

 

[sgcount]

Hello, what pouring cold water!
Accept reality and the hard facts and stop day dreaming.
HK /SZ is a living example for reference right in front of you..
The only difference is SZ is so much and well developed that within such a short time, it has a stock market and financial centre, an impressive and extensive subway and road works, public transport which JB is never near there.

However, still, there are tens of thousands of Hongkongers still flocking over to SZ in the evenings and every weekends for cheap massage, cheap Karaoke, movies, shopping for cheap groceries and counterfeits, which is exactly what JB is exactly offering now to attract visitors - cheap massage, cheap Karaoke, cheaper movies, cheaper groceries and counterfeit DVD (RM10 for 3 for the latest blockbusters).
And yes, SZ also offers cheaper home for the age and medical consultation and rehabilitation.
Is this the kind of success you are expecting?
Maybe in time to come, there will be another 100 massage parlours opening in JB to cater for the "boom" but however, JB will still be the same JB but with many more massage joints and a few more shopping malls.

Heyyyy... Dun say until like dat leh.

Massage parlours and shopping malls and all that are only a tiny part of JB. You forgot the big industries and foreign investments!

If you look at the newer parts of Iskandar 10 years ago, wasn't it just forests? Today, there are roads, water supply, hospital, many residential properties, offices, even a theme park Legoland. That's not progress, then what?

Now it's at another stage of getting the HSR in, and more big companies to go over.

Singapore's very high cost of living is not sustainable. What's preventing people from moving over is the lack of good transportation. Wait for the HSR and RTS. And once the bus network BRT is more established within Iskandar itself, you will see more Singaporeans living there.

Some people say No way the Singapore government will allow Singaporeans to move over to Iskandar as the economy will be affected. I don't think so. These people are not thinking far enough. Actually it's a very good plan!

Imagine, Singaporeans won't complain about the high cost of healthcare. The Ministry of Health has one less headache. Properties in SG will be for the middle class onwards. There is still value. The economy won't be affected so much because there will still be Singaporeans working IN Singapore. It's just that they now live in Iskandar. That's all. It's a win-win situation for both Johor and SG.

You get it?

 

[Bubble]

heyyyy... Dun say until like dat leh.

Massage parlours and shopping malls and all that are only a tiny part of jb. You forgot the big industries and foreign investments!

If you look at the newer parts of iskandar 10 years ago, wasn't it just forests? Today, there are roads, water supply, hospital, many residential properties, offices, even a theme park legoland. That's not progress, then what?

Now it's at another stage of getting the hsr in, and more big companies to go over.

Singapore's very high cost of living is not sustainable. What's preventing people from moving over is the lack of good transportation. Wait for the hsr and rts. And once the bus network brt is more established within iskandar itself, you will see more singaporeans living there.

Some people say no way the singapore government will allow singaporeans to move over to iskandar as the economy will be affected. I don't think so. These people are not thinking far enough. Actually it's a very good plan!

Imagine, singaporeans won't complain about the high cost of healthcare. The ministry of health has one less headache. Properties in sg will be for the middle class onwards. There is still value. The economy won't be affected so much because there will still be singaporeans working in singapore. It's just that they now live in iskandar. That's all. It's a win-win situation for both johor and sg.

You get it?

good point

 

[Frodo]

Heyyyy... Dun say until like dat leh.

Massage parlours and shopping malls and all that are only a tiny part of JB. You forgot the big industries and foreign investments!

If you look at the newer parts of Iskandar 10 years ago, wasn't it just forests? Today, there are roads, water supply, hospital, many residential properties, offices, even a theme park Legoland. That's not progress, then what?

Now it's at another stage of getting the HSR in, and more big companies to go over.

Singapore's very high cost of living is not sustainable. What's preventing people from moving over is the lack of good transportation. Wait for the HSR and RTS. And once the bus network BRT is more established within Iskandar itself, you will see more Singaporeans living there.

Some people say No way the Singapore government will allow Singaporeans to move over to Iskandar as the economy will be affected. I don't think so. These people are not thinking far enough. Actually it's a very good plan!

Imagine, Singaporeans won't complain about the high cost of healthcare. The Ministry of Health has one less headache. Properties in SG will be for the middle class onwards. There is still value. The economy won't be affected so much because there will still be Singaporeans working IN Singapore. It's just that they now live in Iskandar. That's all. It's a win-win situation for both Johor and SG.

You get it?

Despite the shortcomings many have said about JB, there has been significant progress made. Even slow progress is progress. So personally I am optimistic about JB in general.

 

[FHBH12]

Is that Pinewood Studios? If it is, they own a HUGE piece of land there for filming. If you watch Marco Polo on Netflix you will know what I mean.

I'm not familiar with Medini area and I don't watch movies. I just find SG too crowded and the pace too hectic. It will be nice to relax at a swimming pool overlooking the sun set and vast greenery in the distant.

 

[mpan12]

I'm not familiar with Medini area and I don't watch movies. I just find SG too crowded and the pace too hectic. It will be nice to relax at a swimming pool overlooking the sun set and vast greenery in the distant.

Agree about the overcrowded situation and hectic part.

Just aim to take a nice short holiday say every half a year. Bali, Batam, Langkawi, Kok Samui, etc are very nice locations. For Johor, there are now many dirt cheap Airbnb offerings. Spoilt for choices. Only S$50-60 a night can accommodate a whole family in a condo with facilities!

 

[mpan12]

Heyyyy... Dun say until like dat leh.

Massage parlours and shopping malls and all that are only a tiny part of JB. You forgot the big industries and foreign investments!

If you look at the newer parts of Iskandar 10 years ago, wasn't it just forests? Today, there are roads, water supply, hospital, many residential properties, offices, even a theme park Legoland. That's not progress, then what?

Now it's at another stage of getting the HSR in, and more big companies to go over.

Singapore's very high cost of living is not sustainable. What's preventing people from moving over is the lack of good transportation. Wait for the HSR and RTS. And once the bus network BRT is more established within Iskandar itself, you will see more Singaporeans living there.

Some people say No way the Singapore government will allow Singaporeans to move over to Iskandar as the economy will be affected. I don't think so. These people are not thinking far enough. Actually it's a very good plan!

Imagine, Singaporeans won't complain about the high cost of healthcare. The Ministry of Health has one less headache. Properties in SG will be for the middle class onwards. There is still value. The economy won't be affected so much because there will still be Singaporeans working IN Singapore. It's just that they now live in Iskandar. That's all. It's a win-win situation for both Johor and SG.

You get it?

Unless you're retired or confirmed staying there, it's still too early to buy a Medini condo. If that's the topic here. All of them are overpriced at the moment and there is no critical demand and businesses to sustain the market. I feel it will likely be a ghost town.

Wait at least another 5-10 years when there are more signs of things progressing. Or wait another 1-2 years where there could be many fire sales from owners who don't see positive returns on their investment.

 

[enjoylife77]

Have rental (12months) as an alternative to buying. During the stay one will see & feel things better whether it is worthwhile buying or not. If decided to buy, just squeeze the seller a tad to recovered the rental.

 

[tstar]

I wonder if anyone retires in bintan. i know many sg people live in batam.
personally bintan has a much better sea view than batam. but things in the hotel area are expensive. probably that is a nearest place where one can enjoy white sands.
I saw a sg developer marketing 25 year leasehold townhouses near banyan t*** hotel.
sgd 550k to 750k. A crazy price for local people.

 

[sgcount]

More pictures!

Iskandar Residences:

Bird's eye view of 1 Medini, Medini Signature and the rest of Medini....

Still got a very long way to go to develop the whole place. The picture reminds me of Singapore in the late 70's and early 80's.