Friday, October 7, 2011

Are you really purchasing a property that is affordable?

Dear Fellow Johorean,

it has been 2 month of worrying month for those property owner and investor in johor in view of the europe financial crisis. Well i am working in the property line for the past 7 years.
For the past 2 year Johor property is now experiencing a price rise that hasn't been experienced before since 1997. In my opinion, Property pricing escalated is due to a few reason.

  1. Increase of the construction cost since 2008. since the cost of building is increased it will definitely directly have its effect on the selling price in order to cover the rising cost from the developers. 
  2. Feel good factor in view of the investment from the IDR (Iskandar Development Region) project such as Financial hub in Taman Molek, EduCity in Sri Alam, Legoland and Educity in East Ledang. 
  3. Completion of infrastructure such as Bakar Batu - Pasir Gudang Highway, Ulu Tiram - Desaru Highway, Ulu tiram - Kulai Highway, and the Latest one is Danga Bay-Perling bridge. 
Of Course there are many more factor for the increasing favor in the JB property. 

Is also has started to create a property grabbing frenzy here, it has been the talk of the town how property price increases for the past few years and how many investor are benefiting from its. I think it is always good when there are some speculation of property in JB so that the market is active and it can attract some other region player to this region. 

One thing that i am worried is some middle low income earner are starting to get worried. Worried that they will not be able to own their dream house in future if they dont buy now. they strongly believe that the property price will keep on escalating till the end of the world. 
I am worried because these has already blinded by the property speculation pricing. They went overboard by purchasing a property that they hardly can afford to. Developers are luring these un-sensitive buyer with all sort of bait such as
  • Free Legal Cost & Stamp Duty
  • RM 1000 downpayment (such as 10% discount for early bird)
  • Developers Interest Bearing Scheme
  • Rental Guarantee Return Scheme
  • 100% loan 

All sort of these package could indirectly create a false sense that they could afford to service this property when they actually cant! (I strictly meant only those people without finance knowledge) 

Economy in Johor is highly dependent on singapore, Most of the people living here is working in Singapore. so this is one fact that we know as a johorean. when Singapore economy dropped so does Johor (but not other states in Malaysia). where in the recent years it has been a roller-coaster on singapore economy.

Simple novice advise, Before you wanted to buy a property you must understand a few thing.

  • purpose of your purchase. Investment or Own Occupation? 
  • What is your budget for installment before choosing property (not the otherwise, normally people will ask what is the Installment after choosing the property they like) - by doing this you will most likely not to over your budget. pls ensure that your budget also taken in consideration such as 
    • Renovation 
    • monthly maintenance fees of your property such as electricity, quit rent assessment etc
    • repair fees 
    • Look into surrounding area, is there a better deal around? there might be a cheaper house around such as second hand, or nearby Taman etc. pricing difference sometimes can be up to 30% difference! 
    • Where to look for better deal? look for websites such as, call an real estate Agent. Auction listing from newspaper or Real Estate Agent. ETC. 

Pls take good precaution before you buy a house, it is not easy to maintain a house as you had planned. do your budget of installment at only 1/3 of your income. not more than that because you will have a lots more other spending to worry about. House is always the last thing that we wanted to lose in the event of cashflow problem. 

Good luck and happy buying!


  1. Hi,

    Can you tell me more about Johor real estate? Plan to buy in JB soon.


    Cheers! Jason

  2. Hi,

    Currently I work in Singapore. I am planning to buy an apartment in Permas JB. Understand there are many new development of apartment in this area like D'ambiance and Parc Regency. Pls advise whether should I invest my money in this new development or existing apartment like Permas Ville or Prima Regency.

    Olivia Tang

  3. Dear Olivia,
    It depends on your target is on rental yield or capital gain.
    Normally capital gain ppl will go for new projects such as D ambience or Parc.
    If rental then I think existing apartment is a good choice.
    Do email me @

  4. Hi,

    Thanks for your advise. I will compare between Prima Regency and Permas Ville,as both are similiar....

    Olivia Tang

  5. Hi,

    Would like to get some advises from you.
    Is Permas Jaya good, comfortable to stay compare with Bukit Indah/NusaJaya?


  6. I would say Nusajaya will have more lifestyle facilities if compared to permas. Permas property is still consider affordable when compare vice versa.
    In term of food, shopping mall bukit indah and Sutera is in superior. However if in term of accessibility both is almost the same with the new EDL highway completion (which is expected on 1st march).
    You might have to travel farther if you want both foods and shopping to jb town via permas bridge or to Jusco Tebrau. Although permas Jusco do have adequate shops to meet your minimum needs.
    So is up to you to decide whether you want the travelling.

    1. Thanks for the reply.
      I am looking at the D'Ambiance and I wonder can have the same quality of project in the west of johor with similiar price.


    2. D ambience looks like a good buy for me. They invest a lots of money on the facilities.
      I would say only the straits view has higher grade.
      No new project nearby at the moment. Maybe the southkey at sentosa or paradise condo(opposite D oasis) has better location.

    3. Nearby area got Elita,Eastbay Strait View, Southkey,
      maybe Puteri Marina,Marriott Hotel...

      I don't see any empty land (station and trail) kept for MRT development as well although the rumor flying about it.


    4. Senibong Cove, and Kota Puteri as well...

  7. I don't think senibong cove has apartment though. Of course the existing completed property is still relatively cheap compare to D'ambience.
    It's all depend on your choice whether to invest or for own occupation.

    1. Do you got any idea bout Megah Ria Easy Bay Luxury Apartment?

      Thank you.

    2. Sorry I don't have any info for that project.

  8. I paid a booking fee for 1 bedroom apartment at D'Ambience 515 sft for investment. I intend to rent out. What us my target rental market and how much do u think rental will fetch? Is it a good investment? Is 515 sft too small?