Property News

[mpan12]

You are not average salaried sinkie with a limited working time shelf life, getting shorter with each passing year. In fact Singapore is a place for people like you who earn overseas money and or earn dirty money. For salaried worker with short shelf life of 40 plus years old, Singapore is a death trap, that's why all try to run to Johor but many jump from frying pan into the fire.

Haha... I like that description:

"All try to run to Johor but many jump from frying pan into the fire."

Very well-said.

Some are still not feeling it because they have yet to pay their bank loans, or the full-blown effect is not felt yet. They are still in mid-air parachuting down to the big fire below that they can't yet feel or see. The burning will be felt when they get their keys and realise the situation.

Ok, I know the usual few may refute the above again so I must state here that it does not apply to you if you got money to throw. But not for those who plunge their hard-earned money thinking they could invest it well by buying Iskandar condos.

Anyway, HAPPY NATIONAL DAY to Singaporeans here!

 

[Tekkun]

I can't agree with the last sentence. It's true only if you are NOT buying for investment and you have the wealth. Maybe you're referring to yourself?

Property is something not so easy to liquidate, all the more so for foreigners who dabble in Johor properties. The last thing investors or common buyers want to hear are new policies not in their favour. For eg, foreigners who initially bought less than RM1mil properties are now stuck. Those who bought expensive Iskandar condos above RM700 psf not realising there is no market among the locals, no critical mass to support, oversupply coming up and little rental/resale potential will be stuck too.

If one only goes back to the Iskandar home once a week or month for holiday, you don't need a calculator or to be good in Maths to know that it does not make financial sense.

To lose RM700k and above is no small sum. It can help the commoner retire earlier or see through a few of his kids through college and overseas uni education.

The point I am making is the difference in making property investments versus buying high yielding bonds and the subject is greed.
It can be anywhere, not necessarily in JB. It can be in Singapore, London, KL or Timbuktu.
Property investment has residual value while risky bonds is well..just risky.

 

[mpan12]

The point I am making is the difference in making property investments versus buying high yielding bonds and the subject is greed.
It can be anywhere, not necessarily in JB. It can be in Singapore, London, KL or Timbuktu.
Property investment has residual value while risky bonds is well..just risky.

Yes, I know your point. But it's not true for all that it does not matter if the property bought loses 50% in value. I also see your point that property is something brick and mortar--can see and touch. But for investors who purely want to make money from it, it goes beyond just that.

Everything has risks. Bonds, shares, properties, etc. That's why right from the start I already mentioned the probability of investment-- how likely is one to make money from a particular investment. Are there other better options? If not, are you throwing your money in a less risky environment but which still carries some risks? Why do that?

I never trash Iskandar on its own which some may misread.Rather, I've always seen the situation with respect to the mindset of investors, which unfortunately, is often not realistic to the situation. If you have the money not expecting to get it back soon, already retiring and want to live there, then by all means, go and buy if you want. But not many are in this kind of situation.

 

[snowbird]

The point I am making is the difference in making property investments versus buying high yielding bonds and the subject is greed.
It can be anywhere, not necessarily in JB. It can be in Singapore, London, KL or Timbuktu.
Property investment has residual value while risky bonds is well..just risky.

How about property vs stock?
Property you need bigger capital to enter the market followed by hefty monthly installment and liquidation takes time for the right taker and worse, there can be no offers.
Stock you can enter with small capital, buy more or sell off any time and even when you are overseas.
Gains maybe smaller comparing to property but if you are adventurous, you can do margin trading for quick gains (or quick loses too), short sell etc.
Smart, sharp and careful people can make hundreds to tens of thousands $$, all in a day's work.

 

[Manhattan]

Twin galaxy studio unit rented out for rm1100. Is it an acceptable deal?

 

[snowbird]

Twin galaxy studio unit rented out for rm1100. Is it an acceptable deal?

You need to know the rental yield first then you know it is acceptable or not.

 

[Relaxman]

Twin galaxy studio unit rented out for rm1100. Is it an acceptable deal?

Better than nothing.... Should be a good deal.

 

[mpan12]

Twin galaxy studio unit rented out for rm1100. Is it an acceptable deal?

That's only S$366 per month! Why not?

As a tenant, I will say THANK YOU VERY MUCH to the landlord! But RM1000 will be better.

How big is it by the way?

 

[eric3417]

Thou we should not compare SG to JB as one is a Developed country & the other is "Developing" country, SG's rental gross yields are from 2+% to 4+%. So at $1.1k myr, what is your gross yield? If it's similar, i would say not bad???

 

[Tekkun]

Property losses, Bonds defaults, NPLs, ...what else...

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Seller incurs 40% loss at Orchard Scotts

By Esther Hoon / The Edge Property | August 8, 2016 8:00 AM MYTAddThis Sharing ButtonAnother seller at Orchard Scotts incurred a hefty loss despite having held the unit for nearly eight years. The loss, which amounted to $1.6 million, accrued to a 1,647 sq ft unit that was purchased in August 2008 at $2,438 psf. The unit changed hands at $1,438 psf on July 22, which was 40% below its purchase price, reflecting an annualised loss of 6%.

In June, a 2,282 sq ft unit on the ninth floor was sold at a $2.4 million loss. All the resale transactions in the project since 2H2014 have been unprofitable. Orchard Scotts is a 99-year leasehold condominium in District 9 and was completed in 2008.

All the resale transactions at Orchard Scotts since 2H2014 have been unprofitable

Separately, a 2,680 sq ft unit at Marina Bay Suites, a 99-year leasehold condo in District 1, was sold at a loss of $1 million after a six-year holding period. The seller purchased the unit at $2,623 psf from the developer in December 2009 and resold it at $2,239 psf on July 26. In January, another 2,680 sq ft unit on the eighth floor was sold at a loss of $1.8 million.
The most profitable non-landed home sold in the week of July 19 to 26 accrued to a 2,271 sq ft unit at Sky@Eleven. The unit fetched a profit of $1.1 million, or an annualised gain of 4%, after being held for nine years. The seller purchased the unit from a sub-sale in April 2007 at $1,110 psf and resold it at $1,585 psf.
Sky@Eleven is a freehold condo on Thomson Lane in prime District 11. The 273-unit development was completed in 2010. Of the five units sold at the condo this year, four fetched lucrative profits exceeding $800,000 each. The four units were purchased in 2007 and 2009.
The unprofitable transaction was traced to a unit that was bought in 2011. In the same week, two detached houses fetched a profit exceeding $4 million each for the sellers. The bigger profit of $4.7 million accrued to a house on Jalan Ampang in prime District 10, which sits on a 7,858 sq ft freehold land. The property was purchased in December 2009 at $1,056 psf on land area and resold at $1,654 psf, reflecting an annualised gain of 7%.
The smaller profit of $4.6 million was due to a house on Mugliston Road in District 15. The property, which sits on a 5,974 sq ft freehold land, was purchased in December 2004 at $303 psf on land area and resold at $1,071 psf. The annualised gain works out to 11%.
The profits do not take into account any construction cost or enhancements done to the property.
Meanwhile, three strata houses were sold at losses ranging from $180,000 to $450,000 in the week of July 19 to 26. The top loss of $450,000 was traced to a 3,800 sq ft semi-detached house on Jalan Emas Urai in District 23. The house, which sits on a 999-year leasehold land, was purchased in December 2007 at $724 psf and resold at $605 psf.
On Tagore Avenue in District 26, a 3,165 sq ft strata house was sold at a loss of $232,888. The 99-year leasehold semi-detached house was bought at $683 psf in January 2011 and resold at $610 psf.
The third unprofitable deal was for a freehold, 4,650 sq ft strata semi-detached house on Jalan Lim Tai See in District 10. The seller took in a loss of $181,000, having purchased the property in September 2008 at $706 psf and resold it at $667 psf.

http://www.theedgeproperty.com.sg/content/seller-incurs-40-loss-orchard-scotts

 

[mpan12]

Yes...so contrary to false belief by some, property investing is not "sure make money" even in the long run. Also, location isn't everything!

Sometimes, even the rich have to suffer massive losses. You never know when you need the money for other purposes. And there are opportunity costs for holding on to a liability for too long.

 

[Frodo]

How about property vs stock?
Property you need bigger capital to enter the market followed by hefty monthly installment and liquidation takes time for the right taker and worse, there can be no offers.
Stock you can enter with small capital, buy more or sell off any time and even when you are overseas.
Gains maybe smaller comparing to property but if you are adventurous, you can do margin trading for quick gains (or quick loses too), short sell etc.
Smart, sharp and careful people can make hundreds to tens of thousands $$, all in a day's work.

I think only in JB can you "invest" in a property without requiring hefty sums of money. I was at JB CIQ and saw the Green Haven condo project being promoted. Zero downpayment, free this and that, and first 5 years no need to pay monthly instalments! I was like "wah lau eh!" The developer should have come up with this promotion back in 2014, I would probably have plunged right in. Now the condo is progressing towards completion very well. Drool only.

 

[snowbird]

Thou we should not compare SG to JB as one is a Developed country & the other is "Developing" country, SG's rental gross yields are from 2+% to 4+%. So at $1.1k myr, what is your gross yield? If it's similar, i would say not bad???

You cannot compare the gross yield with SG because SG's interest rate is lower.
The yield should be higher in MY to correspond with the higher interest rate on your loan..........unless you are talking about nett yield.

 

[snowbird]

I think only in JB can you "invest" in a property without requiring hefty sums of money. I was at JB CIQ and saw the Green Haven condo project being promoted. Zero downpayment, free this and that, and first 5 years no need to pay monthly instalments! I was like "wah lau eh!" The developer should have come up with this promotion back in 2014, I would probably have plunged right in. Now the condo is progressing towards completion very well. Drool only.

That's why it make people like you drooling all over that ,without thinking, decided to "invest" right away.
But later, when they finally woke up and discover all the restrictions on resale or not getting the gross yield on rental (or worse, can't find tenant) or can't find a buyer........
Then how?
We are talking about "investment" as you had mentioned.

 

[Frodo]

That's why it make people like you drooling all over that ,without thinking, decided to "invest" right away.
But later, when they finally woke up and discover all the restrictions on resale or not getting the gross yield on rental (or worse, can't find tenant) or can't find a buyer........
Then how?
We are talking about "investment" as you had mentioned.

Well, I did put the word invest in quotes. My point is that for many Singaporeans (like yours truly here who is not ashamed to drool ) who cannot even own a private property in Singapore, JB condo projects like Green Haven are an attractive proposition, indeed no need to think one, a no brainer because SG is out of the question, forget about NZ, London or Australia! Some of us do not have a lump sum of money to play with, where we can decide whether to dabble in stocks or to pump it all into a "doomed" JB condo paid in full, or use it all as just a 20% downpayment in a SG condo (which can still end up losing money for the buyer, as Tekkun has posted). In my opinion, the Green Haven project will complete in 2018, then 5 years no need to service the loan because developer absorb it, that takes us to 2023, which by then maybe the HSR, BRT, event RTS may have seen some progress. Who knows, your bleak view of the condo scene in JB may not materialise after all. Besides, it is about 7 years from now till 2023, things can change for the better, or buyers can start saving up. By then, prices all over may have risen close or above a million RM. I just made a new friend who was born and bred in JB, but have travelled outside of JB to work for many years before coming back to JB to stay. He said JB now is much much better than years before. It is safer than KL, and also safer than many other countries in Asia, except Singapore lah. Singapore always the best one. ;p

 

[snowbird]

Well, I did put the word invest in quotes. My point is that for many Singaporeans (like yours truly here who is not ashamed to drool ) who cannot even own a private property in Singapore, JB condo projects like Green Haven are an attractive proposition, indeed no need to think one, a no brainer because SG is out of the question, forget about NZ, London or Australia! Some of us do not have a lump sum of money to play with, where we can decide whether to dabble in stocks or to pump it all into a "doomed" JB condo paid in full, or use it all as just a 20% downpayment in a SG condo (which can still end up losing money for the buyer, as Tekkun has posted). In my opinion, the Green Haven project will complete in 2018, then 5 years no need to service the loan because developer absorb it, that takes us to 2023, which by then maybe the HSR, BRT, event RTS may have seen some progress. Who knows, your bleak view of the condo scene in JB may not materialise after all. Besides, it is about 7 years from now till 2023, things can change for the better, or buyers can start saving up. By then, prices all over may have risen close or above a million RM. I just made a new friend who was born and bred in JB, but have travelled outside of JB to work for many years before coming back to JB to stay. He said JB now is much much better than years before. It is safer than KL, and also safer than many other countries in Asia, except Singapore lah. Singapore always the best one. ;p

Sometimes there are things around us that just seems to be "too good to be true" and they are actually too good to be true literally.
When developers are offering so much goodies, think hard why.
Clearing stock?
Poor sales?
Anticipating bad times ahead?
Anticipating new rules affecting sales coming?
Cash flow problems?
Fierce competition?
But never never in a million years a generous developer giving out goodies for free.

Your optimism sounds more like a sales talk........all the future development in JB, RTS, HSR, etc, etc....
But in reality, even the basic infrastructure in JB are catching up with the rapid development.
You better hope first for immediate major improvement to roads and its network, drainage, sewer treatment, water supply, power supply, etc, etc. and not having water ration, massive traffic jam, etc like in KL very soon.
Also, 2018 will be the General Election, the result may change nothing or everything.

 

[Funniman]

Naysayers lai liao.....

 

[xebay11]

Property losses, Bonds defaults, NPLs, ...what else...

-----------------------------------------------------------------------------

Seller incurs 40% loss at Orchard Scotts

By Esther Hoon / The Edge Property | August 8, 2016 8:00 AM MYTAddThis Sharing ButtonAnother seller at Orchard Scotts incurred a hefty loss despite having held the unit for nearly eight years. The loss, which amounted to $1.6 million, accrued to a 1,647 sq ft unit that was purchased in August 2008 at $2,438 psf. The unit changed hands at $1,438 psf on July 22, which was 40% below its purchase price, reflecting an annualised loss of 6%.

In June, a 2,282 sq ft unit on the ninth floor was sold at a $2.4 million loss. All the resale transactions in the project since 2H2014 have been unprofitable. Orchard Scotts is a 99-year leasehold condominium in District 9 and was completed in 2008.

All the resale transactions at Orchard Scotts since 2H2014 have been unprofitable

Separately, a 2,680 sq ft unit at Marina Bay Suites, a 99-year leasehold condo in District 1, was sold at a loss of $1 million after a six-year holding period. The seller purchased the unit at $2,623 psf from the developer in December 2009 and resold it at $2,239 psf on July 26. In January, another 2,680 sq ft unit on the eighth floor was sold at a loss of $1.8 million.
The most profitable non-landed home sold in the week of July 19 to 26 accrued to a 2,271 sq ft unit at Sky@Eleven. The unit fetched a profit of $1.1 million, or an annualised gain of 4%, after being held for nine years. The seller purchased the unit from a sub-sale in April 2007 at $1,110 psf and resold it at $1,585 psf.
Sky@Eleven is a freehold condo on Thomson Lane in prime District 11. The 273-unit development was completed in 2010. Of the five units sold at the condo this year, four fetched lucrative profits exceeding $800,000 each. The four units were purchased in 2007 and 2009.
The unprofitable transaction was traced to a unit that was bought in 2011. In the same week, two detached houses fetched a profit exceeding $4 million each for the sellers. The bigger profit of $4.7 million accrued to a house on Jalan Ampang in prime District 10, which sits on a 7,858 sq ft freehold land. The property was purchased in December 2009 at $1,056 psf on land area and resold at $1,654 psf, reflecting an annualised gain of 7%.
The smaller profit of $4.6 million was due to a house on Mugliston Road in District 15. The property, which sits on a 5,974 sq ft freehold land, was purchased in December 2004 at $303 psf on land area and resold at $1,071 psf. The annualised gain works out to 11%.
The profits do not take into account any construction cost or enhancements done to the property.
Meanwhile, three strata houses were sold at losses ranging from $180,000 to $450,000 in the week of July 19 to 26. The top loss of $450,000 was traced to a 3,800 sq ft semi-detached house on Jalan Emas Urai in District 23. The house, which sits on a 999-year leasehold land, was purchased in December 2007 at $724 psf and resold at $605 psf.
On Tagore Avenue in District 26, a 3,165 sq ft strata house was sold at a loss of $232,888. The 99-year leasehold semi-detached house was bought at $683 psf in January 2011 and resold at $610 psf.
The third unprofitable deal was for a freehold, 4,650 sq ft strata semi-detached house on Jalan Lim Tai See in District 10. The seller took in a loss of $181,000, having purchased the property in September 2008 at $706 psf and resold it at $667 psf.

http://www.theedgeproperty.com.sg/content/seller-incurs-40-loss-orchard-scotts

Imagine if this can happen in land scarce Singapore, I shudder at the thought of the losses of those who invested in Johor .

 

[Tekkun]

Imagine if this can happen in land scarce Singapore, I shudder at the thought of the losses of those who invested in Johor .

Of late, Singapore banks hit by massive debts and non performing loans. Watch out for debt collectors on the road as they enforce credit tightening especially for those with high gearing. Iskandar property investors not so bad as the properties is cheaper, risks are lesser. But still have to be careful of ripple effects over the region.

 

[Manhattan]

That's only S$366 per month! Why not?

As a tenant, I will say THANK YOU VERY MUCH to the landlord! But RM1000 will be better.

How big is it by the way?

About 500sqft. Like a big hotel room type.