Retiring in JB

[Hamtaroo]

my uncle bought a condo there recently, about 160k sing only at 1600sqf. he told me there are danger areas so just avoid those places can already. sounds like a good idea. maybe just drive a simple jap car to stay low profile.

 

Hey mind sharing which condo did your uncle bought ?

[Chewbacca]

I would not recommend a condo in JB.

 

First off, management for Condo in JB not as good as in Singapore. Corruption, or just plain bo-chup-ness, etc etc. Not good.

 

Secondly, there are cases of the security guards in cahoots with robbers/thieves. Or just being the robbers and thieves themselves.

 

Finally, just not worth the money. You can get a much bigger landed property in JB. Why not?

[Carnut]

JB is certainly not for everyone, especially those who are born/bred and never left Singapore much of their lives.

 

For landed properties purchase in Johor - w.e.f 1st Jul 10 foreigners can only purchase landed properties above RM500k increased from the current RM250k. This does not apply to condo purchases though.

[Chewbacca]

JB is certainly not for everyone, especially those who are born/bred and never left Singapore much of their lives.

 

For landed properties purchase in Johor - w.e.f 1st Jul 10 foreigners can only purchase landed properties above RM500k increased from the current RM250k. This does not apply to condo purchases though.

 

Oh. Totally forgot about this.

 

Yeah, I guess a condo makes sense, in this case.

[Carnut]

The problem with condos in JB is that management is a big problem, unlike the Klang valley where high rise living is the norm, just like Sg. Johor has vast undeveloped land, so condo living is still very much a rarity. Finding a well managed high end condo in JB is a real challenge.

[Hwt]

Do you guys really need $2K a month? And only to survive? What do you need so much for? I mean, I'm going to guess that you're debt free at this point in time.

 

So....what do you use this for? I mean, when you retire, you really need to change your lifestyle, anyway.

 

This is the cost of living per month for one person in Johor (not Singapore):

 

food : 400 MYR

electricity : 60 MYR

water : 4 MYR

Internet : 100 MYR

cell phone : 30 MYR

household expenses : 200 MYR

house maintenance : 200 MYR

travel : 200 MYR

car, home insurance : 100 MYR

transport : 100 MYR

other insurance : 200 MYR

misc : 200 MYR

car : 600 MYR

 

total = 2394 MYR = 1040 SGD

 

Because of 2 percent of annual inflation, 15 years later, the total becomes about 1400 SGD.

 

Assuming one stays there for twenty years, after factoring in inflation, one needs about 420k SGD.

 

Because one cannot ensure he or she will die at the 20th year, there needs to be a buffer, of, say, 10 years. So, to retire for 20 years in Johor needs about 630k SGD. But to do so, one needs to buy a house first, which may be about 400k MYR, which is 173k SGD.

 

So, to retire in Johor for 20 years, one already needs an asset of 803k SGD. This assumes zero percent return. It can be lowered by 200k SGD or so if there is a few percent of return.

 

The cost should probably be higher or at least comparable in Singapore.

Edited June 8, 2010 by Hwt

[Sgg687z]

how can you think of retiring when our MM is still so active? leading by example.. we have to work till 112 yrs...

 

 

I was wondering why our MM travel more often than PM.

[Mrbytez]

Nice discussion... I have 30+yrs more to plan for it.. hahaz...

 

By then, living standards and conditions should be way different from how it is now at current state. As land in Singapore gradually gets used up, property prices will also soar higher and higher... With HDB prices nowadays, one can easily get a landed property in Msia, correct me if I'm wrong...

 

But then, the ease and security that you feel at home differs as well, depending on whether your home is in SG or Msia.. Despite the rising crime rates in SG, I guess majority of the people will still feel safe at home in SG than Msia...

 

However, as living expenses go higher and higher in SG... People are also forced to think of alternatives which is why more people are choosing to live outside Singapore... As living expenses rise, you can only work harder to let your pay/ salary rise in tandem or else it'll slowly become a burden, weighing you down...

 

Somehow I feel a lil' sad just thinking abt it.. Gotta slog all the way and then in the end, even a HDB is a hard earned, hard to maintain luxury. Argh, let's all work hard together!

[Carnut]

Generally for the majority working class people - "eat not entirely full, but won't starve either" ..

[Tigerr1001]

When the time you retire, and if u owns a HDB, i can sell the HDB and bring the millions over to Malaysia and can retire comfortably there. Just make sure you dont stay too near at Genting or mix with all the PRC Dragon gals. Too many retired man have spend all their retirement funds in Genting and Dragon Gals after retirement. I have one friend, after retired, took out all the EPF money, follow the friends to visit China, and end up fly there every month with different gangs, and finish all his EPF money within 1.5 years and heard he is now back to working status with a small company and always hiding at home as no face to come out to meet friends anymore. Poor old man and still got may be 15 years or more to go.....

[Jasonjst]

This is the cost of living per month for one person in Johor (not Singapore):

 

food : 400 MYR

electricity : 60 MYR

water : 4 MYR

Internet : 100 MYR

cell phone : 30 MYR

household expenses : 200 MYR

house maintenance : 200 MYR

travel : 200 MYR

car, home insurance : 100 MYR

transport : 100 MYR

other insurance : 200 MYR

misc : 200 MYR

car : 600 MYR

 

total = 2394 MYR = 1040 SGD

 

Because of 2 percent of annual inflation, 15 years later, the total becomes about 1400 SGD.

 

Assuming one stays there for twenty years, after factoring in inflation, one needs about 420k SGD.

 

Because one cannot ensure he or she will die at the 20th year, there needs to be a buffer, of, say, 10 years. So, to retire for 20 years in Johor needs about 630k SGD. But to do so, one needs to buy a house first, which may be about 400k MYR, which is 173k SGD.

 

So, to retire in Johor for 20 years, one already needs an asset of 803k SGD. This assumes zero percent return. It can be lowered by 200k SGD or so if there is a few percent of return.

 

The cost should probably be higher or at least comparable in Singapore.

 

I thought you can finance the 1,040 or 1,400 if we rent out our HDB to Ah Thiong from Dragon Land . Wow ...

I am learning some wonderful slang here ... . Then they work , we go retire in JB lah

 

Anyway are you sure cost is of living is higher here ?

Edited June 8, 2010 by Jasonjst

[Luckcent]

I was wondering why our MM travel more often than PM.

Because not much time left for free travelling lah......

[Hwt]

Anyway are you sure cost is of living is higher here ?

 

I have not done any computation on this in recent years. Perhaps someone who has been staying in Singapore, in his or her own house, can suggest a figure. Quality of life is different at the two places, but I suppose some people will not care (or can find sufficient reasons to convince oneself that the difference is tolerable), so I do not take it into account.

Edited June 8, 2010 by Hwt

[Darthrevan]

maybe just drive a simple jap car to stay low profile.

 

Low profile means u have to drive a Proton

[Jasonjst]

This is the cost of living per month for one person in SG

food : 400 SGD

electricity : 100 SGD

water : 50 SGD

Internet : 50 SGD

cell phone : 50 SGD

household expenses : 300 SGD

house maintenance : 100 SGD

travel : 100 SGD

car, home insurunce : 200 SGD

transport : 100 SGD

other insurance : 200 SGD

misc : 200 SGD

car : 800 SGD

 

total = SGD 2750

 

Because of 2 percent of annual inflation, 15 years later, the total becomes about 3575 SGD.

 

Assuming one stays there for twenty years, after factoring in inflation, one needs about 850k SGD.

 

Because one cannot ensure he or she will die at the 20th year, there needs to be a buffer, of, say, 10 years. So, to retire for 20 years in SG needs about 1.3M SGD. But to do so, one needs to buy a house first, which may be about 400k MYR, which is 173k SGD. THIS ONE DONT NEED BUY ALREADY

 

So, to retire in Johor for 20 years, one already needs an asset of 1.3M SGD. This assumes zero percent return. It can be lowered by 200k SGD or so if there is a few percent of return.

 

The cost should probably be higher THAN JB.

Wah lah , that this count , no need to dream of retairing in SG ..........

Can some finance counsultant here give a more acurate calculation ?

 

[GoodCar]

You should submit this to the statistic department to balance their academic calculation....haha

[Ehchang8]

what my malaysia friends told me : the house is much cheaper. proton is also much cheaper, but imported car not great different from singapore. hawker food cheaper and better, but u always needs to drive. in singapore u can do without a car. imported good are mostly more expensive than in singapore, eg. korean instant noodle ... raw food like veg are getting expensive, can be more ex than singapore. internet is slow. tap water quality ...hmm.. most family will get a filter. more mostiquo. more free parking space.

 

so assuming that u already paid for your house, can live without a car, mostly cook at home simple meals, the living expenses can also be low in singapore.