Chocolate:
Thanks for sharing. I enjoyed reading your post and it's good we exchange opinions like that.
Yes, it's a tenants' market in both SG and JB now.
There is a tendency for some to lump SG and Iskandar together. A Malaysian property agent once said JB's property market follows SG's closely. If SG doesn't do well, JB also doesn't. As if to say don't worry. If SG can make it, Iskandar will do well also. I think that's false sense of consolation. SG and Iskandar are very different. The governments are different, the various systems (eg healthcare, education) are different, the population and race profiles are different. The property market is different too. Only the culture and way of speaking are fairly similar.
I think that's where the danger lies. People rush in to buy Iskandar properties thinking that they will succeed just like how they have with SG's properties. Whether one agrees or not, I have to say this is totally not true in my opinion.
Based on past performances, even if SG property market is slow now, the chances of it rebounding or picking up are a lot higher than Iskandar. The data say a lot. SG is very well-established and the population is there. Iskandar has a lot of land. But the place is lacking in population and a solid plan on how businesses can take off. I see it as a place where many past investors have dumped a lot of money there and you see pictures of Najib and the Iskandar authorities smiling widely with money in their hands. But in their eyes, I don't see that drive and strong affirmation that Iskandar is heading towards a clear direction. They may say they are going to build this and that, but somehow, it's just not convincing how all the things will come together. Maybe the plans will be fulfilled. But by when? 25-30 years time? Will you still be around? Are you investing in Iskandar for yourself or for your grandchildren? That kind of time frame is too long and risky to bet anything on.
On the contrary, when you listen to how the SG government talk and see how they work, you see the drive and momentum. The MRT system was planned all the way in the early 70s and was finally completed in 1987. Many citizens depend on it now. You see the promises made. You see them saying completion date of a certain building is by when, and you can be assured it will be done on time or even before it.
For Iskandar, plans have been delayed indefinitely. Condos that were originally promised to be completed in 2016 are now dragged on to near 2018. What happened to the RTS? I don't know, don't hear of it any more. They even said SG is the one delaying it when we have already designated a place where it should be. So it's excuses, excuses, finger-pointing, typical laziness on the part of the JB authorities. Yet there are tons of condos to be ready in 2017/18. To serve who? All buying for their own stay? I don't think so.
Now, compared to SG, do you think it's easier to rent out your SG condo or Iskandar condo? At least, landlords can lower their rents in SG and they can still find tenants. In Iskandar, I think even if you lower your rent very low, you run the possibility of not getting one. As it is, the rent in JB is so low now that it is unlikely to cover your monthly bank loan. Why bother renting out if you are the one serving your tenant like a slave?
As for safety, I think there's no need to compare much. Singapore is arguable one of the world's safest place to be in, be it in HDB lift or walking alone in the streets at 11pm. JB is nowhere in comparison. But let's put this point aside which has been discusses too many times.
If there is nowhere to invest now, then don't? Why do some ask: "Show me where or how to invest in Singapore? The cooling measures are still there." My reply is, Aren't you already invested in Singapore? Why be so greedy and want more? Must you really plunge your money somewhere in order to feel happy? Be happy that you are already making money in SG now. But that does not mean out of no better way, you decide to put your money in Iskandar, then try to defend all the negative points that are commonly known.
Of course, as I've mentioned too many times, if you have excess cash, if S$300k is only a small part of your $5million wealth, then sure, you can choose to take a chance. Buy an Iskandar condo or house to play with, relax, enjoy. Even if the condo becomes part of a ghost town, little value left, who cares right? You can absorb the pain cos your net worth is much more than S$300k. But for other less wealthy investors or home buyers, a wise decision has to be made. Are you willing to lose S$300k when that amount can be put to better use, such as building up a family or for your children's education? When I say lose, I really mean it. That's the risk. What happens if no buyer wants your property? Ok maybe 20 years later you may find a buyer. But what if you need the money in 5 or 10 years' time? You can't sell. You've got the bank going after you for money every month. Your cash is stuck with a property that has become a liability.
At the moment, many have not dealt with the oversupply issue in Iskandar and the lack of future tenants/buyers. How should there be people appearing miraculously in Iskandar for your properties to boom next time?
If you're a Malaysian, would you rather work in SG to earn 3x more, or would you go to Iskandar? So where is the influx of tenants coming from with thousands of Iskandar condos and houses in the pipeline for the next 5-10 years?
That's the crux of many issues about Iskandar that has to be dealt with.
