Buying property in Iskandar, Johor.

Singaporeans are pouring money into the Iskandar region in Johor, buying up real estate.

"Singaporeans make up 74 per cent of foreign home buyers in the Nusajaya township in Johor's Iskandar region, according to Malaysian property developer UEM Sunrise." 

Read story: here.







(Added in November 2016.)

Anecdotal evidence shows that most are buying for investment, hoping to rent out their properties or to sell for a profit later on. 

Few are entertaining the possibility of staying there.

I have spoken to friends in Malaysia and some of them stay in Johor. 

They told me that the optimism is just scary and they really cannot see how Johor would have so many renters to rent from enthusiastic (and, in their words, naïve) Singaporean landlords.





One told me that he now stays in one of these new townships and the neighbourhood he is staying in is not even 50% occupied. 

Yet, there are new neighbourhoods being constructed around his.

"This is not Kuala Lumpur. You Singaporeans are crazy."



I think people are optimistic about property in the Iskandar region because of the proximity to Singapore. 






So, if anyone is thinking of buying a property there for investment, it makes sense to buy one that is close to the proposed link to Singapore's MRT line. 

A train ride to Singapore's city centre then could take no more than 40 minutes assuming that there isn't a jam at the Customs checkpoints.

Am I interested? 

Well, there are too many optimists amongst Singaporean buyers now. 

I will wait until a time when they are mostly pessimists before looking. 



I could miss the boat but it is of no consequence to me. 

I rather miss it and still have my money than to join the crowd, buy in a mad flurry only to regret later on if I lose money.






(February 2014.)

2 February 2017

Related post:
Disastrous property investments!

Nobody cares more about our money than we do.

I read something by Suze Orman which resonated with me and I would like to share it here:

Right now, interests are still relatively low even though they’re headed up probably. We still have one of the lowest interest rate environments ever.




Everybody knows that when interest rates go up, the value of bonds go down.

If you are going to buy a bond mutual fund, you have to be very careful because if interest rates go up, the value of that bond mutual fund will go down. And, in a mutual fund, there is absolutely not maturity date.

So, what are you thinking? The worst thing you could do with your money right now is put it into a bond mutual fund.




Not too long ago, my dad came to me after visiting a local bank right here in Singapore. 

He showed me a few pieces of paper which a financial advisor at the bank gave to him. 

Basically, he was advised to invest in a unit trust which was invested in bonds. 

Luckily, he did not commit right away.

Bond funds are not the place to be now and I have said this in various blog posts before.

As I believe that the very low interest rates we currently see cannot persist for many more years, buying long term bonds is a risky proposition.
Why? See: CPF or SGS?

Now we have "perpetual bonds". What are these?  See:
Perpetual bonds: Good or bad?





We have to remember that nobody cares more about our money than we do. 

Don't take what "finance professionals" say as the Gospel truth, especially not when they want to benefit from our business.

This actually raised a question in my mind as to whether wealth managers are providing products which are fit for purpose or are they self serving sales people.
See: Be cautious even as we accept higher risks.






My parents have both been sold unsuitable products by "advisers" in local banks before. 

I tell them to remember that these "advisers" are just sales people and it so happens they work in banks and they sell financial products. 

The more they sell, the more they make. 

They are not altruistic or noble.




We have to look after our own interests. 

No one else would.

Related posts:
1. Unscrupulous and rude person from Prudential.
2. Inflation adjusted retirement income plan.
3. Know what is good for us.
4. Why a wealthy nation cannot afford to retire?