For many a Singaporean, JB has always been the go-to place for a weekend getaway filled with cheap food, good deals and affordable entertainment. And perhaps between a visit to their furniture stores or a quick supermarket visit for household items, you start wondering about the possibility of staying here for the long term, perhaps consider a retirement home.
That is exactly what Charles Tan did, when he moved across the border into a MYR 700K (~S$211K) 2-bedder condo. We interviewed him to learn more about the experience, from how he bought his retirement home to how juggles life between Singapore and JB.
Buying an amenity-rich, 2-room condo for 700K ringgit
Image credit: Danga Bay Residences
Charles’ retirement home happens to be a 2-bedroom condo in Country Garden Danga Bay with a 999-year lease. He purchased the home a good 6 years ago, and the condo comes with all of the features that you’d expect of a premium condo in Singapore, including a swimming pool, gym, sky garden and 24/7 security.
At what is essentially the price of a 2-room BTO, this home is an incredibly affordable property to acquire for Charles and his wife, seeing as their goal is to live there during their retirement. It functions as a holiday home for their children too.
Scrambling to grab a property in Country Garden to profit from inflation might not be the best idea though, as Charles says that prices might have actually gone down, with his property currently valuing at MYR 400K (~$120K).
Simple buying process; developer even offered to pay interest
Image credit: MalayMail
Charles found the property during a project showcase event, where he approached an on-site agent who essentially gave a rundown of the purchasing process.
They chose to take a loan from a Malaysian bank as it made more sense for them, considering the fact that they are paying for the property in Malaysia ringgit. It was also partially because they weren’t aware it was possible to use Singapore banks to finance Malaysian property beforehand.
The loaning process was actually simpler than expected, with Charles choosing a bank that opens on the weekends so that he and his spouse could head over the causeway on the weekends to settle the legal paperwork.
As the property they bought was still in development, the actual payment happened in stages but even that was done over internet banking, giving little need for Charles to shuttle back and forth from Johor whilst the condo was being built. He cheekily remarked that they ended up heading over only during launch events, mostly to get in on the free food, coupons and vouchers.
A noteworthy mention is that the developers he bought from offered to pay the interest on the loans before the condo was completed as a way to sweeten the deal for prospective buyers. It is unclear if such offers are still a common practice today, but it may be worthwhile to look around for similar incentives offered by developers.
How to finance property in Malaysia
Step 1: Apply for a letter of offer or fill in a developer’s sales form. This would come with an agreed upfront deposit, usually about 2-3% of the property price.
Step 2: Apply for a bank loan, either in Malaysia or back in Singapore. If you are choosing to get a loan in Malaysia though, also consider getting a Malaysia My 2nd home (MM2H) visa,which allows you to take a loan of up to 80% of the purchase price. Without MM2H, you’ll expect something closer to 70% at most.
Step 3: A Sale and Purchase Agreement (SPA) should be signed within 14 days of the letter of offer. The agreement lays out the terms and conditions of the sale,as well as provide an inventory of what you’re purchasing. You’ll also pay a 10% down payment as part of this agreement. Do note that the 2-3% paid as part of your letter of offer does contribute towards this 10% deposit total.
Step 4: You’ll have final state authority consent. It’s important to make sure your property meets the noted requirements by state prior to this point.
Step 5: Pay the remaining balance of 90% on the property purchase price as defined under the SPA.
Note that the requirements for the legal side of purchasing a property in Johor can feel overwhelming, but hiring a lawyer to help you navigate the legal landscape would save you quite a bit of headache. Read up on the full process here.
Pros of JB living : generally safe & very affordable
Beletime Danga Bay, the shopping mall below the Country Garden condo.
Image credit: Go Johor
Charles speaks of day-to-day living there being decent, but also says that it is a YMMV (your mileage might vary) situation. He mentions that there are indeed residents who remain disgruntled by the development failing to fulfil promised features like a rooftop sky gallery, or even shoddy construction with reports of faulty wiring within homes.
Image credit: Country Garden Danga Bay
But for him, the self-contained community, with shops right within the condo grounds, is a big plus that lets you get all your essentials without needing to leave the place. And if you decide to want more, the favourable exchange rate, coupled with the lower cost of living in Malaysia, means that it’s generally easy to indulge yourself using your Singapore savings over there.
The beachside walkway in Country Garden Danga Bay.
Image credit: Country Garden Danga Bay
Retiring over in Johor wouldn’t pose much of a culture shock either, as for Charles, there is very little difference between how people are like between Malaysia and Singapore.
Image credit: Country Garden Danga Bay
For those who do have security concerns about living across the causeway, he mentioned that the condo purchase was indeed to an extent motivated by the better security afforded, at least compared to a standalone landed home.
The Crown Arch at the entrance of the sultan’s palace
Image credit: Helen Gray
His residence also happens to be close to the Bukit Serene Palace, which means that state police have a regular presence there.
A retirement home in JB for 700,000 ringgit
Charles advises that if you’re looking to buy a retirement home in JB, you’d probably want to have a small checklist for the properties you visit. This includes being near public transportation like bus stops, or a main road if you plan to primarily use ride-hailing services like Grab, and the amount of maintenance done on the property if it is a condo as well.
And when asked about what he misses about living in Singapore, he good-naturedly replied, “no need to miss la,” citing the fact that you can always just take a bus back should you miss our island nation.
What legal requirements do Singaporeans need to have to purchase property in Johor?
Singaporeans are generally going to be eligible to buy a house in JB, so long as it is priced above MYR 1M, or MYR 2M if you’re looking for landed property instead. The main challenge is more so the having to go through the legal documentation required as part of the purchase process. Read up on the full legal requirements here.
What are some key considerations before buying a retirement home in JB?
Property purchase & lifestyle
You’re probably going to want a retirement home in JB that provides the lifestyle you want, be it convenience, amenities, or availability of public transportation. Being close to medical facilities will also be a big plus, especially when you’re in your silver years.
If you intend to stay in the country for an extended period of time though, also consider getting the MM2H visa. On top of the larger loans you can get with Malaysian banks, it also lets you stay in Malaysia for as long as you want without the usual 30-day limit as a Singapore citizen.
Besides budgeting for the purchase of the home itself, also consider how much you need to maintain the lifestyle you want in JB, whilst also factoring in the possibility of healthcare and other costs.
Passive income through rental Income
Retiring to JB does not mean that you will no longer have ways to get a little bit of extra cash to supplement your savings. While living in JB, you can afford to think about renting out the home you have in Singapore for some additional income.
Future market trends
For those looking to buy Malaysian property for investments purposes instead could do well to keep a close eye on projects related to Johor, such as the Johor-Singapore Special Economic Zone (SEZ), as well as other factors such as the Rapid Transit System (RTS) Link Project to determine their viability as investments over time.
Read our other articles here:
- 6 best JB neighbourhoods near the causeway
- Is buying a home in Johor Bahru worth it?
- Is it worth renting a property in JB as a Singaporean?
Cover image adapted from: Danga Bay Residences, MalayMail
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