Not YtL...i thk 4km far...still no firm info yet..will PM u bro..ok..heheh dont kacau ppl thread...this thead for Boss Suites Klang...heheh..anythings u can PM me too...we share2 info..cheers..

there will not be any hotel operator for this project and how the developer is going rent the whole 377 units to expats and local tenants with the promising rental guarantee?

it's better to peruse the tenancy agreement, especially the termination clauses!

Hi All,

I have an update for this project. Please refer to below for the details:-

1. Free hold title
2. Fully Furnished (television, air-conditioner, bed, curtain, study table, wardrobe, etc)
3. Service Suites for 10/90 Scheme (by Maybank, BSN, and AFFIN Bank); Commercial lot for 15/85 scheme
4. DIBS (no progress payment)
5. Free Maintenance for 18 years
6. Lease back and guarantee rental for 18 years at 7.5% (net of 6.5% for suites), and 8% (net of 7.5% for commercial)
7. Hotel management which are shortlisted to Hilton, Novotel or Best Western
8. Free legal on SPA
9. Booking fee is RM5,000
10. Construction commenced, and completion end of 2013/ early 2014
11. Every 3 years CPI of 9% on your rental return (increase your property value by 3% per year and recalculate your GRR base on the increased price)
12. Located at Klang prime area (and praised by Feng Shui Master), offering convenience and high accessibility
13. The one and only iconic tower in Klang, Selangor
14. Flexible, zero-risk leasing with high appreciation rates and high buy back value from the developer
15. Hotel Management ties with over 4,000 companies and factories as their panel hotel for their travelling executives
16. Price: RM 240,000 onwards!

Anyone interested please kindly pm. Thanks.

Regards,
Alvin Gan

Anyway Alvin, what type of guarantee rental return and free maintenance guarantee based on since this is 18 years.
Any fixed amt $ put in bank to guarantee this?

Hi Kelvin,

Guarantee rental simply means that the developer covers the monthly rental as though they are the tenant in your property. Guarantee rental for 18 years means they guarantee they will stay at your property for the next 18 years and pay you monthly rental which is 6.5% base on your purchase price. The developer will bank in the money monthly to your designated bank account.

Maintenance Free means you do not need to pay maintenance fees for the next 18 years to the developer. This has been absorbed by the developer. A black and white document called Tenancy Agreement are prepared to protect you and the developer on both's interest. It will clearly state the above mentioned clauses.

Regards,
Alvin Gan

What I'm am asking is how good is the GRR?
Guaranteed by who?corporate guaranteed?

Hi Kelvin,

The GRR is 6.5%. Good? Let me explain using a calculation example, please refer to below:

Remarks:
Selling Price: 200k
20% Deposit: 40k
80% Loan: 160k
BLR: 4.5%
Loan Tenure: 30 years

Bank instalment: RM811
Net Rental income (base on 6.5% GRR): RM1084
Surplus: RM273 per month
Surplus: RM273 x 12 = RM 3276 p.a

GRR is guaranteed by the developer. They will have to honour it as it is stated in the tenancy agreement.

Regards,
Alvin Gan

The 6.5% is on the selling price itself, meaning every year onwards the rental will be only RM1084 even though the property price may increase to 300k after 3 years.....so, is it under value the rental by refering to selling price and not the market price.....maybe other condo with price 300k they can rent out with RM1625k (6.5% of market price) but you only got RM1084....correct me if i m wrong, thank you.

Hi Guppy,

Your statement above is very true. The developer themselves have already noticed this. To make this 6.5% GRR even more fair to the investors, they have an increase of CPI (property value) of 9% once every 3 years. Which means today you bought the unit at 200k and the 6.5% GRR will base on this price. To make it reflect to the market condition, as stated above, the developer will increase 9% on the 200k which will become 218k on the 4th year. Then the GRR 6.5% will base on the 218k which is amounting to RM1180.

For your convenience, I have work out the table below for your review (base on RM200k unit):

1st term : RM 1084 per month
2nd term : RM 1180 per month
3rd term : RM 1287 per month
4th term : RM 1403 per month
5th term : RM 1529 per month
6th term : RM 1666 per month

Remarks: 1 term = 3 years

Also referring to your example above, I beg to differ on the 300k x 6.5% = RM1625 rental income as this is a very subjective rental income calculation. Some condo might have enjoy good capital appreciation but not so good on the rental rates. It will depends on the rental demand of the property. Besides, average rental rates in the Malaysia market in general will fetch around 3-5% (depends on the property upkeep, location, public amenities, building facilities, future development, etc).

Furthermore, as the developer is giving a guarantee return, it is not feasible for the developer to speculate or forecast the property value (capital appreciation) to increase by 50% [(300k-200k) / 200k ] over 3 years.

Invest in The Boss @ Klang will kept the uncertainties to the minimum as the developer is providing 6.5% GRR for 18 years and increase of CPI of 9% every 3 years.

Regards,
Alvin Gan

I got update, still got units available.

Anyone bought? I'm very sceptical now. Got marketing company claims got 50unit available, 280k. Over priced?

developer use the same company to sign the guarantee return scheme? or different company?

If 18 years GRR and as stated by Alvin above is actually 3+3+3+3+3+3, total 18 years.

Mean your capital for the property by today is lock for next 18 years and after it expired at 2030, you may sell your property that time. Perhaps a gamble for 40k as capital for the deposit and after 18 years, the principal would be reduce by half, say loan 160k and it reduce to 80k.

Problem is how much can sell after 18 years. 1mil?
If it do, means a 40k gamble for 920k return? (1mil-80k bank outstanding loan)

This post has been edited by Chris Chew: Feb 18 2012, 02:03 AM

after 18 years of time there must have some value but not at your said 40k for 920k so highest

I just assume only. RM 200k property and increase to RM 1mil in 18 years is hard to say actually. If landed, very likely. Not sure for SoHo.

However, say it really make RM 920k. It's look good as at 2012 today paper calculation. RM 920k on 2030 is actually very small compare today.

Biggest issue is, can it make it?

I doubt bcz even KL have no successful SoHo product, not to mention, Klang a famous Chinaman place with much landed to grow. The minded of them are always invest in landed.

What a place property let say now you buy 300k and after when the building complete the price will jeep up like speed 600k something.

No, is different company, will be another company that manage the hotel. this other company is said to be managing other hotels as well.. to me is all bullcrap this management company need to give the suite owners 400-500k every month. lets say they cannot tahan coz no customers and bankrupt in 3 months, how? that time u have to pay the suite's loan to bank , 1k+ urself. and cant sell also, coz already overpriced, nobody wanna take from you unless you sell at discounted rate. lol

from what i heard, they even offer to buy off the property off your hand anytime between the 18 years according to market rate. is there such a perfect investment?

i have a doubt... Does the developer has the authority to terminate the tenancy when after 3 years renewing within 18 years?

I think yes.

Most developer would probably do this.

Hotel?

This post has been edited by Bahkuteh: Mar 11 2012, 12:08 AM

What's the latest with this development? Drove past and saw the area boarded up.