Retire in Style for Singaporeans in Malaysia- Johor Bahru

Contributed By: The Big Fat Whale

We believe that the escalating costs in recent times have really made us wonder if retirement is even possible. Do we have to work till much older than the legal retirement age of 63 years old? Are we able to retire in style?

Therefore, quoting from Bruce Lee, we should: "Be like Water", adapt to the conditions and be open-minded about the options available. We can create a greater lifestyle, lower our cost of living and embark on an incredible adventure.

With a lifestyle arbitrage, using the same amount of retirement funds, we could stretch our scarce funds or have an upgrade in living standards.

We decided to start a retirement series with Malaysia as our first coverage.

Our focus will be retiring on Johor Bahru as it might be one of the more viable options for Singaporeans. Other popular spots in Malaysia are Penang, Kuala Lumpur and Malacca.

 Malaysia Long Term Visa

So for a start, we will look at the requirements for a visa to have this sort of living arrangement.

For Singaporeans, there is no need for a visa if you do not intend to stay for a period exceeding 30 days. So in theory, you just have to clear the customs every month in order to renew your 30 days.

We are not sure if there will be issues if you keep crossing the border especially if you are still working. There could be a need for you to pop by your office a couple of days a week.

From the interviewees from this article by Channel News Asia, Work from home in JB: Some Singaporeans are relocating amid border reopening, hybrid arrangements, it seems there should not be too much of a problem with regards to not obtaining visas for Singaporeans intending to embark on this lifestyle.

Nonetheless, for those who want everything sorted out and be by the book, there are two visas that you could find applicable:

 

Malaysia My Second Home Program

To qualify for this program, the applicant must have liquid assets of at least MYR500,000, a monthly regular income of at least MYR10,000 and make a fixed deposit in a Malaysian bank of MYR300,000, half of which can be withdrawn to buy a house, purchase health insurance or pay for their children’s education.

After two years, part of the deposit may be withdrawn to use the car purchase concession, as long as a minimum balance of MYR150,000 is maintained during the entire stay in Malaysia under the program.

Click Here for the Full Article:

https://thebigfatwhale.com/retire-in-style-for-singaporeans-in-malaysia-johor-bahru/

Propnex A Value Play- Is Spore Property Prices Correcting?

Contributed by: The Big Fat Whale

• Propnex is trading at a PE of 11 and a dividend yield of 7.6%
• They have the largest amount of agents in Singapore
• Earnings have fallen by 18.8%
• Propnex Price has dropped 32% from their peak
• They have an impressive Return on Investment of 37%

Propnex has been a stock on our radar due to its great return on investment metric. Sadly, we have missed the good run that they had over the past 2 years. So with the recent correction in price, is it turning into a value play?

The stock market is a forward-looking proxy for the economy. Is the recent weakness in the price of Propnex an indication of a correction of Singapore Property Prices ahead?

We did an article on a likely property crisis in late 2022, and we still hold to the view that our thesis is valid.

We will dive into the different elements to hopefully unearth some useful insights. More importantly, we would like to know if Propnex at its current level is an investment worth considering.

 Property Price Trend- Singapore

Source: tradingeconomics.com

Let us first have a look at the property price trend in Singapore to have a better feel of the general direction. Looking at the URA Property Index which has done a coverage of private home prices, we are still seeing an uptick in the prices.

There was a slight decrease in 2023Q2 but for 2023Q3, the prices reverted back to their uptrend.

Looking through the charts from 2000, there were 3 evident corrections for the Singapore Property Market. They are in the early 2000s (9/11 and Sars), 2008 (Global Financial Crisis) and 2014 (Euro Crisis).

Source: HDB

The HDB (Public Housing) Price Index is showing an even stronger upward trajectory. There was no drop in prices for 2023Q2.

In essence, Singapore property prices are still in unchartered territories by reaching new highs. Even with the upsurge in interest rates, the government's restrictive policies (literally at 60% taxes for foreigners to buy a property- it has killed the interest of this segment), and big tech layoffs, the property market has remained resilient.

Click here for the Full Article:

https://thebigfatwhale.com/propnex-value-property-prices/

 

Likely Property Crisis in Singapore- A drop of 30%?

Contributed by: The Big Fat Whale

In recent times, despite the upheaval around the world, the Singapore property market has been holding well. It is still on an upward trajectory that makes it like "Not being in the game is a fool's play".

It has been one of the surefire ways to build your golden nest by upgrading from your first BTO HDB to a private property and to another private property every 4-5 years to escape the Sellers Stamp Duty. Not many have not reaped returns using this foolproof path.

There is an interesting Tik Tok video where the content creator was mentioning that his property agent is pitching a newly launched condo as a sure-proof way to lock in profits after 5 years of holding. It is along the line of just buying the property at 1.5 million now and cashing out at 2 million 5 years later.

Then it shows the speech by our deputy Prime Minister who said no one he has known could have predicted property prices in the future. Moreover, this development is situated in a non-prime area which makes the pitch less convincing.

 

Property Price Trend

Source: Trading Economics- Singapore's Residential Property Price

From the chart above, you can see property prices have been a worthwhile holding if you. have a time frame of 10 years or more.  The two notable periods where there was a profound correction would be the Asian Financial Crisis in 1997 and the Global Financial Crisis in 2008.

During the Asian Financial Crisis, prices plunged close to 40% and it took nearly a decade for those who got at the peak to be back to breakeven in 2007. The stock market declined by 60% during this period. We can affirm this as a friend who bought a condo unit at the peak of 1997 saw his property valuation come back to breakeven only ten years later. It is his version of the "Lost Decade".

Click Here for the Full Article:

/https://thebigfatwhale.com/likely-property-crisis-for-singapore/