I've booked a unit... was told that the renewal of contract after 4 years, it cost you 3 months rental to replenish the furniture, wall, etc..

Have booked a unit and was a bit regret for doing so honestly. Was told by developer to pay 5% DP upfront even before signing of SPA within a week from booking. i've booked the corner unit (biggest s.f.)

For potential investor on this project, I wish to highlight that :
1. The only End-financing is UOB Bank, other bank proceed on ad hoc basis with unfavorable interest rate or stringent credit policy. I was told that even if you get only 80% financing, still have to pay the developer RM5300 for quiting the booking, condition mentioned in booking form upfront.

2. I'm working with UOB Bank and was told that our end financing team, the End financing team not comfortable with the loan, but the tie-up was done by bridging loan (Business Group - surpass assessment by Director, End-financing group).

3. The project consist of 1000 units of condo, while no issue on completion risk. however, appreciate in asset value is questionable in view of possible over supply of similar residential property in cyberjaya. Developed with aim to be hostel doesn't help the potential appreciation.

4. The project is good as rental tools, as good as the rental income enough to cover installment payment. however, after deduction cost of furniture (Rm50,000) and discount, the net rental over property value is about 5++%, which is very average /below average. By locking in the rental pricing for 4 years, not much appreciation anticipated.

Only if I've done enough homework before commiting ... It's escalating commitment for me.

Do let me know any gurus view on this, I wish to know....

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Added on May 11, 2011, 4:48 pminoue_chiaki, thank you so much for sharing. As a buyer, I think you share the same worries....

This post has been edited by Edmund86: May 11 2011, 04:50 PM

UOB is End financing of Shaftsbury and Serin, and financing these two project favourably. UOB still offer quite competitive rate of BLR-2.3 for The Arc.

taufufa, how's ur confirmation about the rental?

Agree with Kelvin.
About the rate, as UOB is only end-financing for this project, of cos the rate will not be so great as no competitor.

Of course the price still based on market price at that moment (depends on transaction on market).
You don't have to wait for 4 years to sell it as you could sell with tenancy agreement to other investors too.

Attached option agreement for GRR. noted each increment in rental (even after 4 years capped at maximum 10%).
Replenishing cost will be 3 months of your rental for each renewal.
SPA draft attached too for your reference.


Attached File(s)
 Option_Agreement.pdf ( 126.91k ) Number of downloads: 679
 Schedule_H_THE_ARC__CYBERJ.PDF ( 180.23k ) Number of downloads: 576

I'm Eugene and owner of b-22-06.. I didn't receive any rental since April 2016.. how to join the group forum? my contact number 60163514389

anyone initiated any legal action against the Maju Puncakbumi? any advice or lawyer to recommend