Yes, very unlikely. Unless they can't get loan.
Added on June 23, 2011, 6:36 amQUOTE(1ullaby @ Jun 15 2011, 01:32 PM)
Hmm , but I suspect the guaranteed return is more like Arc Residence, leaseback to developer, rather than like Casa Subang on top of your rental style, coz was mentioned optional after 3 yrs ... drquek can you confirm this?
Anyway 5500*12 / 1.2mil = 5.5% gross yield
if like Arc den better to manage ur own property dy
Yes, one can always manage on his/her own to get higher return. Any smart investor will do so.
Considering the size of the student population at Taylor's University (projected at 40,000), it will not be a problem getting tenants for any properties within walking distance to the University. Currently this type of accommodation is in great demand. Due to shortage in supply, many students are forced to live far away and pay very high rental. The University currently provides shuttle bus services for them.
The University has signed a tenancy agreement with the developer which gives rise to the guranteed rental return.
Moreover, based on projected rental in the area (RM750 per bed currently vs projected RM1000 in the near future), it is possible to fetch much higher rental if manage own self.
A SOHO unit (>2,400 sf) can fit in 9 students comfortably based on twin sharing.
A selling point to wealthy foreign students is the "high class" lifestyle with full recreational facilities and security. Something you can't find in normal flats/apartments.
This private University has 50% foreign students, many are from well-to-do background.
This post has been edited by drquek: Jun 23 2011, 07:05 AM 
Jun 15 2011, 12:54 PM
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