Our property investment journey in Melaka

chickenrice82

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*Disclaimer: This is for sharing purposes only and is not in any way intended for advertisement purposes. Please consult with your own real estate professional to determine if this is a good investment for your situation.*




My wife and I are in our mid 30s with some savings and one day, we decided it’s time to get an investment property.

We looked at getting a 2 bedroom condo in SG. To the shock of our lives, a 2 room leasehold condo in Jurong is going for S$1 million.

For the following reasons we concluded investing in SG property is financial suicide:

1) Oversupply: many landlords are unable to rent out their properties and those who succeed are often unable to secure rental yields high enough to cover their mortgage payments.

2) High upfront costs: Buyer and Additional Buyer Stamp Duties alone will be S$144,600.

This doesn't include other costs ie renovation, furnishing, agent commission to rent out the property etc

3) Miserably Low Loan to Value: In SG, one can only get up to 45% loan to value mortgage for their 2nd property. This means my cash outlay immediately is 55% or S$550,000 minimum. If the banks value the $1 million property to be worth $800K, my loan margin will be much lower!!

4) Rentability: There's zero guarantee we can rent the condo out at the price we need to cover our mortgage payments. Failure to rent out a property can have a devastating effect on one's finances. So much so that some of my neighbours have had to sell their investment properties in Singapore for huge losses due to this alone.

So what did we do?

Long story short, we were in holiday in Melaka when we chanced upon Hatten's sales gallery.

A consultant there introduced us to their latest project, Harbour City.
A mixed development, it comprises of a mall, hotels, serviced resorts, and Melaka's first indoor/outdoor theme park.

After looking at the floor plans, we decided to purchase a 2 room serviced apartment for the following reasons:

1) Managed for us: Hassle Free, we needn't worry about looking for tenants etc

2) Rental Guarantee: 6% for 6 years, after calculations is more than enough to cover the mortgage payments thus leaving us with positive cash flow

3) Financing Available: we were able to lend up to 60%, much high than Singapore's miserable 45%

4) Listed Developer with track record: Listed in Singapore, Hatten is one of the largest developers in Melaka with a huge portfolio of malls, hotels, serviced apartments and condos - they must be doing something right to be this successful.

5) Bigger Picture: Upcoming Melaka Gateway, right next to Harbour City, will create over 45000 jobs and attract over 2.5 million tourists yearly. High potential for capital appreciation and rental demand.

This investment was a no brainer and we've since signed off the Sales & Purchase Agreement in their Singapore office without hesitation.

If you'll like more info, pm me and I'll have my consultant contact you directly.

Thanks for reading and hope this opens your perspectives on property investment opportunities overseas.
 
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trailblaze

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can u share which exact unit u buy, how much, any discount, where can dl floor plans...

better answer fast b4 ppl flag this as advertisement ,bro...
 

Wishdom

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I'm gonna bet everything that you are the ''consultant'' himself.

Mod please delete thread.

Sent from Ilovennp using GAGT
 

Toni90

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Mark up the price 50% then pay 6% per year? Sound like a good plan.
 

ocs_woodlands

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TS will probably have better luck in EDMW where the IQ levels are generally lower across the board and where people believe that a property investment in Msia is comparable to SG :s13: :D :s13:
 

chickenrice82

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Mark up the price 50% then pay 6% per year? Sound like a good plan.

Just found out there's a developer in Singapore which is offering guaranteed rental returns.

Are you saying that this developer is Mark up price then pay a certain % every year?
 

JuniorLion

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Funny thing is he said "He looked at floor plans and decide to buy"

I wonder such testimony is credible? If someone told me he bought because of floor plans, I would doubt his credibility.
 

gq.ong88

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Our property investment journey that led us to Melaka City

My wife and I are in our mid 30s with some savings and one day, we decided it’s time to get an investment property.

We looked at getting a 2 bedroom condo in SG. To the shock of our lives, a 2 room leasehold condo in Jurong is going for S$1 million.

For the following reasons we concluded investing in SG property is financial suicide:

1) Oversupply: many landlords are unable to rent out their properties and those who succeed are often unable to secure rental yields high enough to cover their mortgage payments.

2) High upfront costs: Buyer and Additional Buyer Stamp Duties alone will be S$144,600.

This doesn't include other costs ie renovation, furnishing, agent commission to rent out the property etc

3) Miserably Low Loan to Value: In SG, one can only get up to 45% loan to value mortgage for their 2nd property. This means my cash outlay immediately is 55% or S$550,000 minimum. If the banks value the $1 million property to be worth $800K, my loan margin will be much lower!!

4) Rentability: There's zero guarantee we can rent the condo out at the price we need to cover our mortgage payments. Failure to rent out a property can have a devastating effect on one's finances. So much so that some of my neighbours have had to sell their investment properties in Singapore for huge losses due to this alone.

So what did we do?

Long story short, we were in holiday in Melaka when we chanced upon Hatten's sales gallery.

A consultant there introduced us to their latest project, Harbour City.

A mixed development, it comprises of a mall, hotels, serviced resorts, and Melaka's first indoor/outdoor theme park.

After looking at the floor plans, we decided to purchase a 2 room serviced apartment for the following reasons:

1) Managed for us: Hassle Free, we needn't worry about looking for tenants etc

2) Rental Guarantee: 6% for 6 years, after calculations is more than enough to cover the mortgage payments thus leaving us with positive cash flow

3) Financing Available: we were able to lend up to 60%, much high than Singapore's miserable 45%

4) Listed Developer with track record: Listed in Singapore, Hatten is one of the largest developers in Melaka with a huge portfolio of malls, hotels, serviced apartments and condos - they must be doing something right to be this successful.

5) Bigger Picture: Upcoming Melaka Gateway, right next to Harbour City, will create over 45000 jobs and attract over 2.5 million tourists yearly. High potential for capital appreciation and rental demand.

This investment was a no brainer and we've since signed off the Sales & Purchase Agreement in their Singapore office without hesitation.

If you'll like more info, pm me and I'll have my consultant contact you directly.

Thanks for reading and hope this opens your perspectives on property investment opportunities overseas.
anyone pm TS? if his claim is true, the number of the consultant should be a malaysia number, and not a singapore registered number.
 

henrylbh

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Just found out there's a developer in Singapore which is offering guaranteed rental returns.

Are you saying that this developer is Mark up price then pay a certain % every year?

Isn't that common sense? Rental yield in my is never that high for individual unit and developers with a basket of units to rent will unlikely to get 100% leased out. So average rent will be even lower. Besides, I am really surprised that so many hotels have popped up compared to my previous visits.
 

andyhtc

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Just found out there's a developer in Singapore which is offering guaranteed rental returns.

Are you saying that this developer is Mark up price then pay a certain % every year?

Some Malaysia developers stop paying rental after a while or require the owner to renovate the unit periodically to upkeep the unit.

Generally, the market rental is negative cash flow for units above $500k RM.

Things can get messy after the GRR period or if developer decides to play punk.
 

stjoe1

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Hahaha advertising in disguise of story telling ..

That harbour city melaka has been advertised since ages ago at Suntec City ..
 
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