22/04/2026
I bought 6 residential properties in Johor Bahru. Two will be managed by the developers' partners as a hotel, so I will get a net rental yield. I hope that it will be 4% or higher. I will rent out 3 apartments in Princess Cove to get a net rental yield of 4% or higher.
I have five grand kids, so they can take one apartment each in 10 years time. I may not be around then.
I envisage that Johor will be integrated into Singapore under the Special Economic Zone. Many businesses will move from Singapore to operate in Johor for lower costs (energy, premises, transport). Travel between Singapore and Johor will be easier with the opening of RTS and maybe RTS 2 (on the western end).
I have to pay 30% tax on the rental income in Johor. I do not mind. It reduces the net yield .
I also have to pay 10% property gains tax on the sale of a property in Johor. I also do not mind sharing part of the capital gains with the government.
Actually, the bigger hurdle is the cost of about 13% (for MOT, foreigner consent, legal fees). Maybe, if the property price increase by 50%, which is quite feasible, I may still get a capital gain on sale. But this is not an important consideration.
The price of a Johor property is seven times lower than a similar property in Singapore. (I said seven times lower, but some insists that it should be said as one-seventh). So, it should be quite easy for the price to increase by 50% to 100% within a few years. At 100%, it will still be 3.5 times lower than in Singapore.
Anyway, my total investment in six apartments in Johor is less than the price of a leasehold property in Singapore. It is a small part of my assets.
Remember, I am investing for the long term with spare cash. I would not buy these properties if I have to take a bank loan. The bank would not give me a loan anyway, due to my advanced age.
Many have poor experience investing in Malaysian properties in the past. They should not let the past blind them from the future. I think that the future will be different. Hehehe.
Tan Kin Lian
