Most people spend years researching, saving, and waiting for the “perfect” moment to invest in real estate — only to never buy at all. John, a Malaysian property agent and investor, took a very different route: instead of waiting, he jumped in fast. And now, with seven properties in Johor Bahru (JB) under his belt, he’s not slowing down anytime soon.
We spoke to John to learn why JB remains his investment turf, how he got started, and what he wishes more people understood about building a property portfolio across the causeway.
Buying His First Property: A Fast Move That Paid Off
John’s property journey began while working in Kuala Lumpur. He noticed that his monthly rent was about the same as a mortgage payment, so he made a quick decision: “Why not just buy?”
The first property was a resale townhouse — fully furnished and move-in ready. He viewed it, liked it, and made an offer within 15 minutes. No long analysis, no hesitation.
In hindsight, he admits it was a bit too hasty. The bank’s valuation turned out to be lower than the selling price, and he had to top up the difference with a larger-than-expected down payment. “I learned the hard way to always check the valuation and compare loan options,” he says.
Still, that quick move got him into the market early, when prices were more affordable. And despite the stumble, it gave him the confidence to keep going.
Why He’s All-In on Johor Bahru
While many investors diversify across cities, John focuses solely on JB. For him, the decision is personal and practical.
“I want to invest in places I can physically visit and monitor,” he explains. Being based in the region means he can keep tabs on his properties, stay updated on local developments, and build relationships with service providers like plumbers and contractors.
More importantly, John is optimistic about JB’s future. The upcoming RTS Link and growing cross-border demand give him confidence that the Iskandar region will continue to thrive in the coming years.
“It’s not just about where the market is today — it’s about where it’s heading. And JB has a lot of upside.”
The Strategy: Practical, Not Speculative
Unlike investors chasing the next hot spot, John plays the long game. “To me, real estate is a hedge against inflation,” he says. “I focus on steady value rather than chasing the highest returns.”
Today, his criteria are clear:
Properties in good locations that are easier to sell later
Airbnb-friendly units to boost income
Condominiums over landed homes, as they generally perform better for rentals in JB
Airbnb has been a game-changer for him. While typical rental yields in JB might hover around 4% to 6%, his short-term units near the CIQ checkpoint or Medini are delivering yields of up to 10%.
“In the right area, Airbnb brings in higher income than long-term rentals — and that makes a big difference,” he explains.
How He Finances It All
To grow his portfolio, John uses Malaysian bank loans and leverages the rental income from his existing units.
The bank evaluates something called the Debt Service Ratio (DSR), which measures how much of his income is committed to existing debt. His rental income helps keep this ratio within acceptable limits, allowing him to qualify for more financing.
It’s a bit like Singapore’s TDSR system, though slightly more flexible when rental income is involved. Just keep in mind that every bank has its own criteria, and working with a local mortgage specialist is key.
