Service residences looking at around RM 2000psf. As for Hotel suites with GRR, selling price approx RM 2800 psf. Let me know if you are interested, i can fulfill you more information.

This u sell also?

Yes. I do.

Hahaha.......no la....i'm not agent, am an analyst ! I registered just to follow this forum on RuMa.

Btw the residence no GRR, only hotel suites ! For me, am too busy with work. GRR works for me especially with good hotel manager




This post has been edited by Roja: Mar 15 2013, 02:47 PM

Thanks for the Li Ka Shings' post

not such thing called guarantee, always ties with T&C

+1 no free lunches. Beware of GRR!

never believe, is just marketing strategies...

What they promised for 5 yrs, 6yrs, 7yrs GRR.. bla bla bla


But you can guarantee they won't terminate your contract or run away... then everything back to square

any brochure to share?

The GRR works as long as the GRR contract is in place. Check your T&C for termination of the GRR. Mind sharing here?

Not bad. Leaseback agreement with subsidiary of developer, who will place RM30M there, with MBB Trustee as the Trustee for the leaseback. The RM30M is for any shortfall from the hotel operations. Payable monthly. Let me try scan some info and upload....

info?

I cant help but register myself to give my piece of take on this...

There is no need for me to specify the good points of hotel unit investments as the fellow forumer has already spelled them out..

Just want potential investors to know something when it comes to financing (not referring to banks whom tie up during launch, even if they do, they offer lower LTV), and some banks avoid such assets. Do u know why?

For hotel suites, they are normally smallish units or units fitted with layouts n cabinetry fit only for short term stay. And the fact that it is tied to a long tenancy, is also its double edged sword. Cos end up the 2 above factors will determine who the buyers are when this product end up in resale market. That means you can only market to investors and not owner occupiers. Which is why banks disfavour them or offer a lower LTV, cos in the event of default n force sale, the property has a limited base of buyers to support.

The other factor is normally such units won't be given the carpark lots, which makes it less favoured by long term occupiers. And the units might run high into fitting out or rewiring costs when time comes for them to convert back to strata residential units when lease end, if there is a provision at all, in the first place.

I am not saying that all hospitality investments are no good. Instead of hotel suites, investors could consider serviced apartments, which have a lease agreement with operators like Fraser, Ascott etc. Cos such units are built in the first place as meant to be residential units, so there is no problems or issues later as mentioned above. There will always be a premium when developers sell you these assests, so be prudent. As long as it is not overly priced, there are still gains to be made. For example, Lot 163 by Kar Sin, if they have known that the end product Fraser Place is so successful .. (80-90% occupancy with yearly 5% increase in rack rates, and eventually more demand is needed and they converted the office units into extra serviced apartments), I dun think they would have sold them at such low price last time. But there is still a active resale market going on for the resale units at abt RM1.5k +-

As for Ruma, what investors fail to see the catch is thats the returns throughout the 10 years are based on the original purchase price, they should adjust the inflated price for the property over the years, cos that is inflation loss.

Just my piece of opinion.

newbie and interested in RuMa.

Mind I ask, what is the bad thing about GRR?

thanks.

Gile mahal!

Beware grr because developer might walkout the deal if the market is not on their side. Just make sure u read the aggreemt thoroughly before finalize it

1. Do u think developer need to shout out to the world that the property is under GRR if the property is already good enough to sell by itself? 2. There is definitely be a clause for them to escape 3. Usually they will appoint another company (much2 smaller one and not their "own"). Anything happens can just cabut 4. Usually developer already factored in the price for this GRR. Hence, price is usually bloated without an actual guatantee due to no.1 to 3.

Not saying all GRR are bad but please do ur own assessment. Nothing is guaranteed in life. Not even ur 9am to 5pm work.

Thanks! Yeah, nothing is guaranteed.

Did you encounter before that the developer walk out of the GRR thing? Mind to share?

Thanks.

Greetings folks,

First of, I am a real estate negotiator working on The Ruma. Secondly, I want to clarify that the opinions below are my 2 cents and is not inclined to favor sales.

Previously I read quite a few articles online talking about scams by developers using GRR schemes. I believed so much in the articles and from then on, I started to get skeptical about GRR marketing schemes like AMINT did.

One fine day during my leisure time, I tried to break down and analyze GRR schemes offered developers and found most of the project being student accommodation, service apartments and hotel suites. I found that not all GRR investment is bad, in fact some landlords made positive cash flow without having to worry about vacancy, paying agents incentive, price war with other landlords, and maintenance of the asset.

Today I would like to share with you what are the things that you need to consider when you are about to money-down on GRR schemes property for investment.

1) Beware of the company that signs GRR contract with you. Read the contract thoroughly. If possible, check the paid up capital of the company, so in case the developer breaches the GRR contract, you could use law to get compensation. (given that the contract you signed has no extraordinary exit clause that benefits the developer only, so READ CAREFULLY again)

2) Know which company is in charge for the management of operations & maintenance. If it is managed by renowned companies E.g Henry Butcher, Frasers, Starwood and etc, you can be assured your asset is in good hands. This will uphold the market value of your property even if it's a lil aged.

3) Know the market rate of the properties around the GRR investment you are considering. Make sure the developer does not over promise on the rental returns, if not after the GRR contract ends you might have a big slash in your rental yield. Undeniable, there are some extra cost factored in your buying price. This is business after all. So make sure the extra cost isn't asking too much to justify its future value.

4) Know what target market the management team is looking at. Students? Expats? Tourist? Students accommodation I personally don't favor. First, in order to generate higher yield, the management might be renting to foreign students that has the infamous image that they almost destroy anything. I'm not trying to be racist here but it's some general perspective on how the public look at them.

5) Figure out what is your target market like after the leaseback period. Who are you going to rent to after the contract ends? What is the expected demand in the area after few years down the road? Is there any future developments in the future that you could possible seek tenants from there? (e.g. corporate towers, shopping malls) Take for example; Cova Villa in Kota Damansara. Their contract with SEGI College has just ended and the place has a slash in rental and now many landlords are desperately looking for tenants.

6) Know what are the future plans of the management after contract ends. Are they interested in renewing the contract? Are they interested in buying back the property?

That's all I could think of now. Hope it could help someone who needed some advice.

On a side note, I'm selling The Ruma There's plenty of explanation that I could not possibly put up here.
Also, I have done my own research. Facts and figures all ready to support your understanding and I personally look highly upon this development. Fyi, The Ruma Hotel Suites is the first 5-star Hotel to be sold publicly in KL City. Interested to find out more, with unbiased opinions, do call me @ 012-3757 057.


Rgds,
Kayden L.

This post has been edited by windstruckk: Jul 9 2013, 03:29 PM

Hi, anyone can advice Ruma residence, good buy? Personally feel that at residence at 5 star hotel should be good...