Is this really worth considering? The 'returns' seem too good to be true:

1) 18 years GRR at 7.5% for serviced suites and 8.0% for retail lots
2) 18 years free maintenance but need to pay sinking fund which is 1%
3) DIBS scheme but completion next year
4) Loan rate not fixed by developer. Depends on bank so if u can nego better rates, then good for u
5) Capital appreciation of 9% guaranteed
6) Free SPA and legal fees (need to pay for loan legal fees)
7) Units can be sold subsale after VP.

There are only a few units available. But saw a few <400 sf costing about 380K. I know the psf price is high for this area but im more concerned about the GRR and capital appreciation. They claimed its all in black n white.

There are a few serious concerns:

1) Price psf is almost double the market value in this place. So obviously developer is making alot of profit
2) GRR schemes are very dangerous as developer usually cover themselves by giving the management rights to another company (which is usually low capital base and not related to parent company). So in case of dispute, we can't do much and we wont be able to regain losses.
3) Nothing mentioned about payment terms of the GRR and if there are any penalties if the investor is not paid on time. So they can even turn around and say payment once a year and we cant do anything.
4) Lawyers for the SPA will be appointed by developer so those lawyers will be acting for the developer and not us in case of dispute later on

http://www.iproperty.com.my/news/669/inves...uaranteed-rents

http://www.beahappymillionaire.com/investi...-return-scheme/

http://biz.thestar.com.my/news/story.asp?f...66&sec=business