Yes, Cova Villa got appreciation, something like 5-10% after 2.5 years. The net 5% rental income is based on the developer selling price.
In you buy at current price (10% appreciation), you actually get net 4%, but after paying bank installemt interest (i m talking only interest here not even the loan instalment which include the principal amount), you get nothing.
If your property does not appreciate what the point of buying it.

Moreover, u will face the riskhaving higher bank loan interest, which then you will lose money every months

Never believe those garantee scheme, espeacilly from Andaman.

i was almost booked a unit in May 11. i went to Andaman office in USJ on Saturday and that time not much ppl and there are still units available in block B (as informed by the SA).

After thinked twice, decided not go as the actual return is around 4-5% (based on net amount after deducting the furniture cost of RM50k, which i think is too high, and the furniture package is referring to fans (not air-con), tables, chairs, wardrabe, bed and mattress..even not hv cooking hood, refri., and cooker). First 3 years, they will not charge any maintenance fee, but for the second 3 years renewal terms..3 or 4 months rental will be charged for maintenance fee..

Anyway, dif investors got dif preference..since this is a GRR scheme, at least the investors are ensure of tenancy and rental regardless of what is the rate of return..

Good luck to Arc investor.

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Added on July 6, 2011, 10:17 amsorry..opps..should be "i think is too low..."...

i too have doubts on the developer and their projects.

sorry sidetrack to another of andaman's property called the Academia at south city mall in sri kembangan.

my brother booked a unit in block A and his loan was rejected by Affin bank.
He also tried to apply to many other banks but they denied his application. Why?
I'm not sure but some SAs say its because they have no confidence in the developer. True?

Thinking about it, what happens after the 3+3+4 years of GRR? The property will be returned to us and then it becomes our responsibilty to find our own tenants?
How sure are we that ppl will want to rent the place?

And if we want to sell it in the 3rd yr (for e.g.), will it be attractive enough for ppl to purchase? since theres only 3+4 yrs left of GRR? wil ppl even want to buy it at all?

How about the resale value? Ok, im sure it will increase by ~ 20-30% after completion but just afraid it will become stagnant after that.
Casa subang in USJ (also by andaman) seems to have its price in stagnation albeit the buzyness of the area surrounding it. No significant difference in price last yr and this yr. (sorry, no info on price 2-3 yrs back as i only remember last yr's bcos i was searching for a good property to buy). Just saying.

The property only sounds attractive in the beginning but what about it being a good property for long term investment?

anyway these are just my opinions . Would like to hear yours if u can input.
thanks

Lifehouse
(I'm not the real user. tumpang-ing user's account to comment)

in fact, you should put AVOID ANY PROPERTY THAT IS MORE THAN RM 300 K !!!