This article summarizes common feedback from Singaporeans and foreigners who have purchased properties in Johor Bahru (JB), focusing on the problems and regrets they've encountered while living in these homes. Joanne and Louis from "哥妹说" break down these issues into seven key areas.
Small Unit Sizes
Investment vs. Owner-Occupied Properties
Many properties near the JB checkpoint are designed with smaller unit sizes, making them suitable for investment purposes but less ideal for owner-occupiers. Singaporeans and foreigners often buy in JB hoping to escape the high costs of housing in Singapore and envisioning retirement or vacation homes. Some even plan to apply for a second home permit.
Space Constraints and Inconveniences
The rising cost of development has led developers to build smaller units to keep prices down. Some units, as small as 600-700 square feet, leave little space for comfortable living. This often results in compromises on essential amenities such as balconies or adequate space for washing machines and drying clothes. Potential buyers need to consider the limitations of smaller units, especially if they require extra space for hobbies, entertainment, or comfortable living.
High Property Prices
Desired Unit Types vs. Affordability
Many Singaporeans and foreigners prefer larger, three-bedroom units for comfortable living. However, these units near the JB checkpoint can cost over RM1 million. This makes it difficult to find a balance between desired space, quality, and affordability. Potential buyers often find themselves forced to compromise by purchasing smaller, two-bedroom units. They hope for more affordable options close to 1000 sqft in the future.
High Cost Considerations
Those seeking larger units (around 1000 square feet) often face price tags of RM800,000 to RM1 million or even RM2 million for seaview apartments.
High Entry Barrier for Foreigners Buying Property
RM1 Million Threshold and Exceptions
Generally, foreigners in Malaysia must purchase properties priced above RM1 million. However, many are unaware that specific economic zones offer lower entry thresholds. For example, in Iskandar Puteri near the checkpoint, some developers have government approval to sell properties to foreigners starting from RM500,000 or RM600,000.
Lack of Awareness and Missed Opportunities
It is estimated that 80% of foreigners are unaware of these lower thresholds, leading them to buy more expensive properties than necessary. A link will be provided to a list of projects under RM1 million that are available for purchase by foreigners. Purchasing power of RM500,000 in Malaysia is very good considering the foreign exchange rate compared to other countries like Singapore.
Developer Issues
Understanding Developer Track Records
Buyers sometimes fail to thoroughly research the developers of the properties they purchase. This can result in buying properties from developers with poor management records or who may abandon projects mid-construction.
Vulnerability of Foreign Buyers
Foreign buyers are especially vulnerable in such situations due to their limited understanding of local laws and procedures. They may feel helpless and unsure how to resolve issues or find professional assistance, leading to financial losses.
Due Diligence Recommendations
It is crucial to conduct thorough research on a developer's background and financial stability before investing. Resources will be provided to identify blacklisted developers.
Title Deed Issues
Lack of Understanding of Property Details
Some buyers only realize after the purchase that the property's title deed contains details different from their expectations, causing dissatisfaction and regret. This often relates to "PLS" land, a specific type of leasehold in Iskandar Puteri.
Types of Land Titles
Malaysia has several types of land titles: Freehold (permanent ownership), Leasehold (ownership for a set period), and PLS (Private Lease Scheme, a unique arrangement involving government collaboration with private landowners). While PLS titles undergo similar transfer processes, they require additional approvals.
Importance of Understanding Contractual Details
Buyers should carefully review the entire contract, particularly land title details, and seek clarification from legal professionals before signing the sales agreement. This ensures informed decision-making and minimizes potential misunderstandings.
Location and Convenience
Unsuitable or Inconvenient Locations
Some buyers, attracted by lower prices, purchase properties in locations that are remote, lack public amenities, or require long commutes to essential services.
Dependency on Private Transport
These areas often lack well-developed public transportation systems, making car ownership necessary. This can be inconvenient for foreigners who only visit occasionally or prefer public transportation.
Proximity to Amenities
Buyers should prioritize locations near major shopping malls (like KSL and Mid Valley Southkey), essential amenities, and convenient access to Singapore via the checkpoint.
Overly Large Properties
Unexpected Challenges of Owning Large Homes
Surprisingly, some buyers regret purchasing overly large properties like bungalows or semi-detached houses. While initially appealing due to the availability of landed properties compared to other countries, these homes can become a burden.
Feelings of Emptiness and Isolation
Large homes can feel empty, particularly for smaller families. High renovation costs, maintenance expenses, and feelings of loneliness can contribute to regret.
Shift Towards Smaller Units
There is a growing trend of retirees and empty-nesters selling their large homes and downsizing to smaller apartments for convenience and ease of maintenance.
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