Straits View Condos Available: RM 2,500/m to RM 4,000/m

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See our overview of the Straits View Condos.

Currently there are numerous condos available at the Straits View condos in the Permas Jaya. The opening of the new highway makes commuting to Singapore much easier now (as well as just getting to the Johor Bahru central business district.

One thing you have to keep in mind when looking for a place to live in Johor Bahru is that many available units are not listed online. A few places, like Straits View and Molek Pine have a larger percentage listed online (given that that are targeting expats and also that they are more expensive, real agents representing them are more experienced and have more tools available, etc.).

iProperty is a good site to find available Straits View Condos, some current listings:

  • RM 2,800/m – 3 + 1 bedrooms, 3 bathroom, 1,650 square feet, low floor. Jaccuzi in master bathroom.
  • RM 2,500/m – 3 bedrooms, 2 bathroom, 1,500 square feet.
  • RM 3,300/m – 3 bedrooms, 2 bathroom, 1,650 square feet. Short term rental available (at higher monthly rate).
  • RM 3,500/m – 3 + 1 bedrooms, 3 bathroom, 1,650 square feet.
  • RM 8,000/m – penthouse, 4 + 1 bedrooms, 4 bathrooms 2,950 square feet.

Business Idea: Home Inspection

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Reading a post on the Iskandar Living Forum got me thinking of a business opportunity. There is lots of interest in buying new homes (condos, link houses and bungalows) but lots of people express concern about buying used houses. There are several reasons for this but I think one of them provides a business opportunity.

In the USA there are professional home inspectors. They often used to be general contractors (and some still are – doing both). Pretty much every resale has a home inspector look through the house. Those doing it, do so many times each week and have checksheets (with dozens of things to check) and they know the area. So they know for example if some developer used bad wiring for a condo or whatever and can take special care to check things that are problematic.

If these don’t exist in Malaysia yet it seems like a great business opportunity (if they do, then just doing a great job at it is still a good business). If you can stake out ground as a reliable expert purchasers will gladly (smart ones anyway that are not home inspector experts) pay fairly well. You don’t need to do a lot of work (once you become expert) to provide a huge amount of value. This is a great place to be for a business (provide a large amount of value for not much work) as you can provide the customer a great value and still make a nice living yourself.

The smart ones in the USA have developed very extensive handbooks to then turn over to the new homeowner with all sorts of useful info. Again this is a great way to set your business as professional. If I were interested in creating businesses here there are lots of opportunity, but this seems like another great one. What you want to do is talk to lots of real estate agents and have them refer there clients to you. I think it is best if you just provide a great service that makes the agents look good (because they provide a good referral to their customer) but if it is legal in Malaysia you could even pay the real estate agents a portion of your fee.

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Investing in Palm Oil Plantations

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I was in the KSL Mall a couple weeks ago and one of the temporary pop up displays they often have selling real estate (often to be build condos…) or wedding materials or… was for investing in palm plantations. Since it was the middle of the week and no-one was around I talked to the salespeople a bit. I am a pretty skittish investor. I am willing to take investment risks but I want to understand what the risks are. I can’t see myself actually investing in this now, but it was somewhat interesting.

They, Golden Palm Growers Berhad claim a 6% guaranteed rate of return. I asked who guaranteed it and I couldn’t really get an answer I understood. They did seem to agree the guaranty wouldn’t protect against some natural disaster or if palm oil prices feel below a certain level (I think the equivalent of $40 a barrel for oil). They seem to be able to use guaranteed much more liberally than would be allowed in the USA related to investments.

Palm trees, with rubber trees in the background

Palm oil trees, with rubber trees in the background by John Hunter, in Thailand.

On top of that return there was a “discretionary bonus” that in initial years was based on income earned on excess capital. I still couldn’t really understand the investment totally but it seemed similar to a limited partnership where the company was the general partner (owning the land and managing the care of the palms and selling the palm nuts to processors). I can certainly understand that the general partner may want to take on limited partners. In such situations the general investment market (palm oil) is important but it is also extremely important to trust the competence and reliability of the general partner. Their interest can be somewhat shared with yours but they have an interest in high management fees (to pay themselves) which is exactly counter to all the limited partner investors.

As I understand it, after 6 years the palms should start producing. The scheme is for 23 years (I think palms have a productive life span of about 17 years, so 17 + 6 = 23). During the productive years investors enjoy 100% of net profits with a minimum return of 9% expected, if crude palm oil exceeds RM 1,500 per metric tonne (today close to $US 500) and I believe equivalent to $40 a barrel for crude oil. It looks like the price might be at about RM 2,500 today (but I am not clear if this is

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Wadihana Condo: RM 2,000 to RM 2,500 per month

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Wadihana condos are large condos in Johor Bahru CBD with only 6 units on each floor.

The Johor Bahru market continues to favor renters. If you are looking to rent feel free to take your time and compare what options you have. And feel free to bargain for what is most important to you (if you want some improvements made to the unit or furnishings, or a reduced price…).

Most all condos expats are looking at come fully furnished. A few are partially furnished. You should always check, but normally the listing will make it very clear if it isn’t at least, largely furnished.

See our overview of the Wadihana condo.

2, of the 6, penthouse condos are currently for sale, both for RM 1,100,000. They are 2 story condos with over 3,300 square feet. Regular units are about RM 450,000.

Chakra Indian Restaurant

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Chakra Indian Restaurant is located in Johor Bahru’s CBD. It is a wonderful Indian restaurant with a wide variety of Northern and Southern Indian food. I have eaten there several times and the quality of the food has been excellent every time.

photo of fried squid

Fried squid at Chakra

Indian bread is one of my favorite foods and good bread is one thing a good Indian restaurant must have. Chakra delights on this score. Every dish I have had has been excellent, including the fried squid shown above.

The setting of the restaurant is quite nice, with several small dining rooms (old rooms in a house). It is located a bit away from anything (just houses nearby). And the restaurant itself has a nice look and is a nice place for a good meal.

photo of table for two at Chakra restaraunt

Table for 2 in one of the dining rooms

There are plenty of dishes that are quite inexpensive and there are also dishes that are quite pricy. It is actually an odd combination, normally places that cater to the higher spending customers don’t offer cheap main dishes. I was wondering if cheaper dishes (some simpler quite quite good vegetarian dishes) would in fact be very small appetizer sized dishes but they were not.

Related: The Village Briyani Cafe – Chez Papa French Bistro – Rosmarino Italian Restaurant

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Iskandar Housing Real Estate Investment Considerations

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When investing in real estate, rental price checks help avoid investing in bubbles. No investment strategy is perfect. If you invest in a new area early, it can be that rental prices do not yet reflect long term value (say rental prices near an announced MRT station but one that won’t actually be in service for 5 years). But ignoring rental prices is risky (just believing long term things will keep going up – this was a big part of the problem in the USA bubble – prices way out of line with rental values).

For this reason, I am skeptical, of investing without rental market checks (including vacancy rates). It is also true I think it is not yet a fully functioning rental market in the new housing estates in Johor Bahru. It will likely be at least 3-5 more years to get a decent idea of where rental prices will be going and how much rental demand there is.

Properties can sell to investors from Singapore (and many other places) that buy the properties to use as vacation homes, retirement homes… for their long term plans). This can even be sustainable over the long term (a significant portion of units bought this way) BUT it is much riskier as an investment than if the units bought for investment are rented out and a fair market rate can be determined to evaluate purchase prices.

To me the key to the investment potential of JB real estate is most importantly, JB having jobs that allow people to buy or rent these houses. It seems to me at the current time there are not enough of those jobs. The second key is Singaporean’s buying (and working in Singapore – commuting). The 3rd pool of users of the real estate are retirees (Malaysians, Singaporeans and others). I would put vacation homes… as 4th, after all those others.

At the current time many sales seem to be going to investors. Those investors can sell to other investors but that is not a sustainable model for increasing prices. Investors have to sell (or rent) to users of the properties.

The most important strategies for Malaysia to encourage the real estate market in the Iskandar region therefor to me are:

  1. attracting high paying jobs is important for high cost housing (much of the housing stock being built is high cost)
  2. making it easy to commute and travel between Singapore and Johor Bahru. This is important for both those that want to commute and for say Singaporeans that want to retire to JB (or buy their parents a place in JB) – For some commuting times are important for others they just need it convenient for say weekly trips.
  3. making it reasonable for foreigners to invest: both making it reasonable for foreigners to buy real estate (increasing demand) and reasonable for large investments (factories, back office high rises…) that will create high paying jobs. It seems to me a big way to get things moving quickly is to get companies in Singapore to move some back office jobs to JB (so far there has been less of this that I think would be wise in the market – I think companies are still not convinced relations will remain very strong, though it is getting closer.). This can both decrease the companies cost and provide good paying jobs in JB. It also is a big incentive for those people working in Johor Bahru to live in JB. Many people commute from JB to Singapore but some don’t want to do that; if their high paying job can be located in JB that would make more happy to live in JB.

For several of these education for kids would be useful. Good local schools would encourage high income workers that want schools for their kids to consider the area (sending kids to school in Singapore is an option but the long commute is a drawback). Medical care would be good both for providing high paying jobs and especially for retirees (and young families).

Another thing to consider for the Iskandar region for attractive tenants (for Johor Bahru properties) are MM2H expats. The MM2H visa is an attractive option that isn’t really available in Singapore (unless you are [B]very[/B] wealthy). Right now many MM2H live in Kuala Lumpor or Penang, but Johor Bahru is a very attractive option (especially with the proximity to Singapore). It seems to me, at this time, few MM2H expats are not really considering JB. I think there could be a very large increase in this demand over time.

Related: Real Estate Investments in Iskandar Have Great Potential but Also Have Risks – Penang Condo Market – Mortgage Crisis Documentary

Buying or Renting in Horizon Hills

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The market for housing in Nusajaya, Johor is hot. The progress of the Malaysian government Iskandar project are making investors very positive. And jobs are starting to be created as new projects are brought online. One of the premier housing estates in Nusajaya is Horizon Hills.

Given the positive feeling many have about the future of Nusajaya many look to buy (either instead of renting, or as an investment). Because so many investors are buying that leaves a demand for renters. And renters can get some good deals if they look.

There are variety of rental options in Horizon Hills, Johor, including:

  • Cluster house, RM 3,000/month, Built Up 2400 square feet, 4+1 Bedrooms, 4 Bathrooms, Partly Furnished. 5 minutes to Jusco Bukit Indah, 15 minutes to second link highway Tuas custom, 7 minutes to Tesco and Giant. 7 minutes to Columbia Hospital.
  • Semi detached, RM 2,600/month, 4 bedroom, 3 bathrooms, Partly Furnished.
  • Cluster house, RM 2,600/month, 2300 square feet, 4+1 bedrooms, 3 bathrooms, Partly Furnished.

And for sale:

  • Cluster/semi-detached, RM 868,000, RM 150 monthly maintenance, 2600 square feet built up, bedroom 4+1, bathroom 4, Partly Furnished.
  • Terrace unit, RM 485,000, 1845 square feet built-up, 4 bedrooms, 3 baths, Partly Furnished.

Related: The Potential of Iskandar is Very High but Real Estate Investing has Risks Also – Molek Pine Condos RM 2,500 – RM 4,000 – Straits View Condos Available: RM 2,800/m to RM 5,500/mo

The Potential of Iskandar is Very High but Investing in Iskandar has Risks

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Investing successfully involves picking out opportunities the market does not fully appreciate yet. Often the best returns are for those investments where very few investors see much potential or where investors are not convinced of the larger economic factors (being nervous about investing in some country…). I read more and more anecdotes of people (largely from Singapore) taking new interest in potential investments in Johor. This is potentially a good sign. It is a good sign if more people are sensible evaluating future prospects and deciding the long term viability of Iskandar is increasing. I do think the signs in the last year has been positive for practices to bring about Iskandar (as it can be) are being applied (backing up what people have said would happen). If these investors are merely following the current hot investing trend that is a risk (many markets globally have had problems with such herding investor behavior in the last decade).

Long term commitment, by countries, to economic investment (especially when short term interest get in the way) is fraught with risk. Few countries (Singapore is one of them) have shown the ability to stick to long term economic strategies when difficulties arise. Often short cuts are taken to aid the most powerful, governments fail to follow through with promises (to actually allow businesses to operate freely or to bring off mass transit systems well…).

Iskandar should still offer higher potential returns precisely because risks are still there for what will happen. This is good for investors. But investors need to also remember there are risks. One of the big problems in the last 10-15 years is large scale ignoring of investment risks across the globe.

Another thing investors in Iskandar should remember is the success of that investment is significantly dependent on government action following through on all the good talk. So far things are progressing very well. But investors should be very interested in making sure that continues. As an investor you can’t only notice once the issues reduce the value of your investment directly. If you wait that long, it is too late.
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Rosmarino Italian Restaurant

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photo of front of Rosmarino Italian Restaurant in Johore Bahru

Rosmarino Italian Restaurant, near Plaza Pelangi in Johor Bahru

Rosmarino Italian restaurant is another very good Restaurant in downtown Johor Bahru. It is located a block from Plaza Pelangi. Expats will enjoy a taste of home and others can get a nice example of Italian cooking. The food I have had has been excellent. The restaurant is nicely appointed and has a outdoor seating (though I don’t really see it as a great location – they do have plants but still you are just on the sidewalk facing the parking lot).

photo of pea soup at Rosmarino's

Pea soup (very good). You can also see the apricot juice, which I like, though it is RM 9 for a small bottle, which is expensive.

The set price lunches are really one of the great bargains I have found so far. For just RM 15 you get a nice soup and an entree. The food is excellent and I have been 3 times and enjoyed new dishes each time. The regular prices are quite steep, especially for Johor Bahru. It seems like RM 50 for a dinner would be on the cheap side and easily it could run RM 100 for a drink and meal.

I highly recommend the lunch deals. And for those with plenty of money the dinners (or just ordering off the normal menu at lunch) I am sure would be excellent. The service I would say is good even very good. Still it isn’t quite as warm or somehow seems something is not quite there for the best fine dining. Overall, I like it and think it provides another great option for fine dining in Johor Bahru.

Related: Chez Papa French Bistro – Village Briyani Cafe, Indian Restaurant – Jumbo Seafood Restaurant in Singapore

photo of Steak with salad and mashed potatoes entree

Steak with salad and mashed potatoes set lunch (along with the soup above). The food was very good, as it has been every time I visited. All photos by John Hunter.

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Danga View and Adamai Condos: RM 2,000 to RM 4,000 per month

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Adamai condo is a new mid-rise condo in JB town with only 47 units in the building. Danga View condos are located in the Danga Bay area and provide smaller units.

The Johor Bahru market continues to favor renters. If you are looking to rent feel free to take your time and compare what options you have. And feel free to bargain for what is most important to you (if you want some improvements made to the unit or furnishings, or a reduced price or whatever).

Most all condos expats are looking at come fully furnished. A few are partially furnished. You should always check, but normally the listing will make it very clear if it isn’t at least, largely furnished.

See our overview of the Adamai condo.

  • Multiple units available with your choice of 1389; 1410; 1485; or 1528 square feet, 3 (+1) bedrooms, 3 baths, partially furnished for RM 3,200 per month, fully furnished starting at RM 4,000 per month.

See our overview of the Danga View condo. Units available now include: