— [1] “Instead of windfall, focus on current income with long-term value preservation.”

My main focus ought to be long-term preservation of liquidity value in SGD terms. LZ.Yu pointed out that we may have a very limited resale demand from locals, much smaller than the new-launch demand from foreign investors.

I assume RnF is more in-demand (perhaps from foreign investors primarily). Perhaps location is the best shield.

• LG-LP: developer reputation
• LG-LP: rental yield, rental demand
• LG-LP: political risk, legal risk
• LG-LP: FX hazard. See below.
• LG-LP: rental haircut .. running costs

— smell: GRY is below 4%, as poor as BGC after expats left. It’s prudent to rely on local tenant pool.

The small quantum, prime location, proximity to Singapore, diversification benefits, momentum, windfall potential, affordability to locals,,, are insufficient to give me 9% GRY required to compensate for the risks.

— oversupply situation is real in JB, even if exaggerated.

https://www.theedgemarkets.com/article/property-market-stuck-doldrums-even-prices-rise-elsewhere

https://www.channelnewsasia.com/asia/covid19-johor-selling-condo-property-market-malaysia-1838926

— some random misperceptions

• small sample size .. I only asked two people about KSL reputation
• over-estimate of the value of “easy access by owner”
• outdated view of street safety in JB

— lesson from and comparison to BGC

• FX is the main hazard, even though prime location protects rental demand and resale value. There’s no much we can do about it, except one thing — we can decide to avoid MYS to avoid FX hazard.
• excellent rental demand
• “Project” size is much smaller than BGC
• There are more Singaporeans familiar with JB downtown than with BGC

— diversify my rEstate ptf.. diversify into Malaysia
MYS has some advantages over Khm, Phl or Chn

SG-JB symbiotic relationship is strengthened by Covid and improving, according to R.Teo.

good (low) cost of maintenance… I can be “on the ground”. I can engage Malaysian Chinese contractors.

For years I wanted to “buy” Malaysia, so the small price tag is a rare gem, but I need to contend with no-windfall[1] and ccy risk.

I hope these drawbacks are already factored into all JB prices, but I guess many Singaporeans push up the price because they find the psf so low, and they use it as a holiday home.

— ccy risk .. slightly less severe than BGC.
ccy hazard can wipe out rental gain + appreciation
— MOP .. if sg gov doesn’t know it, then risk is low.
— ForwardHazardRate .. I did go through a lot of trouble at Uptown.
— ppp plan needs adjustment .. need to keep 100k outstanding.
— resale restrictions .. after you buy, you may not be able to sell to foreigners (due to Rm1M restriction), so you need to focus on local buyers, who can’t afford.
— accessibility/connectivity .. driving(or motorbike) or Grab. Public transport is infrequent.
— “small unit in prime location, with affordable price tag”
RnF fits the bill, but heavier price tag. See rental yield below.

I have experienced the same at BGC. Prefer a change. With 3BR I can rent to 4 individuals (43R).
— rental yield
https://www.propertyguru.com.my/property-for-rent?beds%5B0%5D=3&property_id=6809&search=true&freetext=KSL%20Residences%20@%20Daya&sort=price&order=asc shows 3BR asking Rm1400+/M. Edward Woo (+60 18 962 2604) said out of every 100 units, up to 40 rented out. Who are the tenants of these 40 units? 15 are migrant workers to Sg; 15 are locals; 5 units used by companies. 

Joan Yee pointed out that CIQ area enjoys better rental demand. However, harder to do 43R.

Q (incisive): how low is rental demand at Daya?
A: Edward said Daya is near downtown and not so bad.