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Is buying a property in Johor a good investment? PDF Print E-mail
Saturday, 10 July 2010 10:37

Is buying a property in Johor a good investment?

Apart from a huge improvement in quality of life if you also live here – also an arguable point if you thrive best in a bustling city or must have hot nightlife most nights, or must be less than 20 minutes from your office – this is really the question.

 

I will say categorically: in the long run you simply cannot lose.

Why? Because for all the land reclamation and puzzling large empty spaces hither and yon, Singapore has run out of land. Johor has the space and is welcoming Singaporeans who want to invest in land, other real property and development.

Will you make money fast on property in Johor?

I don’t think so, unless you are lucky – depends on what you mean by ‘fast’. In comparison, if you had a $400,000 5 room HDB in 2009 that went up to $650,000 in 18 months … that, I would say, is fast.

But who can really tell? Now that Singapore and Malaysia are become such good friends, development should gallop along and investments in property should show faster appreciation.

And you need much less money to invest in a property in Johor: RM$500,000 which at S$1 = RM$2.30 = S$218,000 or less if the exchange rate is in the S$’s favour. Plus the banks are willing to lend you generously if you qualify.

Property in the Iskandar region opposite Tuas is likely to appreciate faster than in the rest of Johor because all the development and new projects are this side. Prices are much higher this side than in JB or one of the other suburbs. It is also likely that as more people move here to set up and work in the new developments they will need to rent houses, so the rent will have to be a lot better than you can currently get on most JB town properties. With exceptions, of course, since an apartment in JB rents for RM$5000 in the 'right' place.

 

Last Updated on Sunday, 30 January 2011 06:35