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> Worth to invest in Condotel in Melaka?, investment (Investment)

justinjustin
post Jan 16 2013, 02:48 PM


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Is it worth to invest in Condotel in Melaka, named 99 Residence?
1) RM 540 psf onwards, standard suite 492 sq ft built up
2) freehold
3) sell & lease back (1st 9 years 7.5% guaranteed, 10th-15th year unguaranteed 8%)
4) maintenance, SPA fee, every 5 years refurbishment cost, ID works and internal furniture - all are included.
5) sinking fund 0.5% p.a. of SPA price.
6) cost for loan agreement & MOT is not included.
7) no DIBS
8) expected completion early 2015.
9) managed by PTS Properties, same management body to Jaya 99 in PJ.
Looking forward to your comments.

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jepakazoid_82
post Jan 16 2013, 03:13 PM


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Location? near dataran pahlawan or not?
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Alvinyeo
post Jan 16 2013, 03:45 PM


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QUOTE(justinjustin @ Jan 16 2013, 02:48 PM)
Is it worth to invest in Condotel in Melaka, named 99 Residence?
1) RM 540 psf onwards, standard suite 492 sq ft built up
2) freehold
3) sell & lease back (1st 9 years 7.5% guaranteed, 10th-15th year unguaranteed 8%)
4) maintenance, SPA fee, every 5 years refurbishment cost, ID works and internal furniture - all are included.
5) sinking fund 0.5% p.a. of SPA price.
6) cost for loan agreement & MOT is not included.
7) no DIBS
8) expected completion early 2015.
9) managed by PTS Properties, same management body to Jaya 99 in PJ.
Looking forward to your comments.
*
shocking.gif

Melaka now price RM 540 psf ?

Crazy.... shakehead.gif
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adriansyc
post Jan 16 2013, 04:09 PM


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y izit to high? as i know this 99 residence is vry low psf compare with other hotel the offer in mlk now.
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justinjustin
post Jan 16 2013, 05:55 PM


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99 Residence along Jln Tun Sri Lanang, next to Prudential building and in between the former Renaissance Hotel, in fact ard 5 min walking distance to Renaissance Hotel.
Their standard suite consists of 1 bathroom, 1 king size bed, living room with sofa, pantry with built-in cabinet, fridge, microwave, hotel style wardrobe, 492 sq ft built up without balcony.
anybody invest in Melaka lately??
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justinjustin
post Jan 16 2013, 05:56 PM


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launching this weekend 19-1-2013, currently almost 50% sold
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lucerne
post Jan 16 2013, 11:40 PM


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what is the psf for melaka best western condotel?
just wan to compare
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CMW123
post Jan 18 2013, 10:23 PM


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How is developer track record?

Is there a link bridge to Jaya 99?

Is the developer related to Jaya 99?
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omg528
post Jan 20 2013, 05:04 PM


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QUOTE(justinjustin @ Jan 16 2013, 02:48 PM)
Is it worth to invest in Condotel in Melaka, named 99 Residence?
1) RM 540 psf onwards, standard suite 492 sq ft built up
2) freehold
3) sell & lease back (1st 9 years 7.5% guaranteed, 10th-15th year unguaranteed 8%)
4) maintenance, SPA fee, every 5 years refurbishment cost, ID works and internal furniture - all are included.
5) sinking fund 0.5% p.a. of SPA price.
6) cost for loan agreement & MOT is not included.
7) no DIBS
8) expected completion early 2015.
9) managed by PTS Properties, same management body to Jaya 99 in PJ.
Looking forward to your comments.
*
almost 90% sold out....2 days only.. drool.gif drool.gif
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justinjustin
post Jan 21 2013, 12:40 AM


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link bridge will be built, heard tat 1 of jaya 99 boss is a shareholer to this project, but all this has never been a issue.
anyway i just withdrew from booking, better focus at market with high population ie KL
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omg528
post Jan 21 2013, 07:23 AM


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QUOTE(justinjustin @ Jan 21 2013, 12:40 AM)
link bridge will be built, heard tat 1 of jaya 99 boss is a shareholer to this project, but all this has never been a issue.
anyway i just withdrew from booking, better focus at market with high population ie KL
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how u withdrew from the booking? I heard the sales said cant withdrew once make booking,unless loan was not approved...
the 15 yrs guarantee attracted me... rclxms.gif
and u booked which unit? rclxms.gif
KL at least also need 500K above la...expensive... cry.gif

This post has been edited by omg528: Jan 21 2013, 07:24 AM
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justinjustin
post Feb 2 2013, 02:24 AM


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QUOTE(omg528 @ Jan 21 2013, 08:23 AM)
how u withdrew from the booking? I heard the sales said cant withdrew once make booking,unless loan was not approved...
the 15 yrs guarantee attracted me... rclxms.gif
and u booked which unit? rclxms.gif
KL at least also need 500K above la...expensive... cry.gif
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in fact i just talked to the marketer for withdrawal. 2 days after I withdrew, they increased additional $15K per unit. They were selling fast, they won't mind your withdrawal.
initially 15 years return attracted me as well, the corrected terms shall be 1st 9 years with guaranteed 7.5% return, 10th to 15th year unguaranteed 8% return, so the attraction is diluted.
however I foresee there are too many hidden costs in the future, e.g.
- low demand in future sub-sale market, return may be cut down should owner asking for higher price in future, this won't be attractive in sub-sale market.
- appreciation of hotel room charges in Melaka is discouraging. Look at numbers of new hotels in Melaka coming up VS the growth of attraction in town.
- should management plans to terminate tenancy with owners at 15th year, there may not have major refurbishment works by end of tenancy. Therefore owner has to spend own money for refurbishment either to sell or to keep renting.
- ROI in 10 years is not exceeding 5% p.a. averagely including assumed appreciation shd u take loan, unless u buy with cash.
- heard tat 1 of the vip has sold off 1 of his biggest properties in Melaka, so why shd i dump money in Melaka? better chao now, i m coward u might say perhaps.

What do u think? hope to have ur comments.
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ecin
post Feb 2 2013, 09:02 AM


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Melacca still slow, come KV
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omg528
post Feb 3 2013, 05:50 PM


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QUOTE(justinjustin @ Feb 2 2013, 02:24 AM)
in fact i just talked to the marketer for withdrawal. 2 days after I withdrew, they increased additional $15K per unit. They were selling fast, they won't mind your withdrawal.
initially 15 years return attracted me as well, the corrected terms shall be 1st 9 years with guaranteed 7.5% return, 10th to 15th year unguaranteed 8% return, so the attraction is diluted.
however I foresee there are too many hidden costs in the future, e.g.
- low demand in future sub-sale market, return may be cut down should owner asking for higher price in future, this won't be attractive in sub-sale market.
- appreciation of hotel room charges in Melaka is discouraging. Look at numbers of new hotels in Melaka coming up VS the growth of attraction in town.
- should management plans to terminate tenancy with owners at 15th year, there may not have major refurbishment works by end of tenancy. Therefore owner has to spend own money for refurbishment either to sell or to keep renting.
- ROI in 10 years is not exceeding 5% p.a. averagely including assumed appreciation shd u take loan, unless u buy with cash.
- heard tat 1 of the vip has sold off 1 of his biggest properties in Melaka, so why shd i dump money in Melaka? better chao now, i m coward u might say perhaps.

What do u think? hope to have ur comments.
*
Yes. I was told they will increase their selling price as well. 15 yrs return is definitely a very attractive package. As you mentioned there are hidden cost in the future....hmm...i actually half agreed to you.

1. Return will definately will cut down if the purchase price increase for sub sales. This is still very subjective but I would actually suggest to check again with the developer. I only know that the return of 7.5% and 8% is based on purchase price. I'm doubt about sub sales return. I believe there are still be demand in the market in future.

2. The 7% is based on occupancy of 3 days per week with the rate of RM220. Thats why they are able to give 7.5% return back to the buyer. If I'm not mistaken, The shore and Hatten city will charge more exp if compare to 99residence. Hotels are more n more, so this is the reason we need to know how 99residence management ensure that there are visitor to choose this condotel compare to others? I just studied that the visitor to mlk are growing yearly and is quite good as well.

3. The only things is to make things clear with the mangement about 15 yrs agreement. 3 times refurnish by the owner in 15 yrs are also depend on the condition of the furniture.

4. I guess most of the ppl are using loan to buy bah?lol...

5. can tell us more? sold off biggest prop? erm....really interesting....


Actually for condotel, only The shore and 99Residence are freehold. Thats why I quite like this development and somemore AMreit just bought over Jaya99.
Showing that the works from the developer looks not bad. And why amreit will buy jaya99? this is the interesting reason as well. Is the prop in melaka are the next growing boom or death soon? hmm.gif hmm.gif
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newbie111
post Feb 5 2013, 08:29 PM


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I bought one too. With a long term view. The ROE is good. Put 30% down, still can get positive cash flow based on 70% loan, 4.5% rate and 30 years. Payback on deposit is 8 years. Assuming tuju pay on time, surely this is at least on par with a condo. If you sell at same price in 8 years, then you have doubled your capital.

AmReit has done more DD than me and judged that Tuju Setia is a decent developer. (I hope so!)

Looking at the tenants in jaya99 and jaya33, I have some confidence in Tuju delivery. Linked bridge, cruise stop and being new in cbd are also attractions.

Downside is resale potential.

This post has been edited by newbie111: Feb 5 2013, 08:45 PM
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omg528
post Feb 5 2013, 10:24 PM


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QUOTE(newbie111 @ Feb 5 2013, 08:29 PM)
I bought one too. With a long term view. The ROE is good. Put 30% down, still can get positive cash flow based on 70% loan, 4.5% rate and 30 years. Payback on deposit is 8 years. Assuming tuju pay on time, surely this is at least on par with a condo. If you sell at same price in 8 years, then you have doubled your capital.

AmReit has done more DD than me and judged that Tuju Setia is a decent developer. (I hope so!)

Looking at the tenants in jaya99 and jaya33, I have some confidence in Tuju delivery. Linked bridge, cruise stop and being new in cbd are also attractions.

Downside is resale potential.
*
Actually there is a limitation...just for a scenario.

Purchase at RM300k, ROI: 7.5%( based on initial purchase price).

Lets say sell at RM400k, ROI will reduce to the buyer...this might caused buyer have to consider again as the ROI is not 7.5%..maybe around 5-6%.
I quite worry about this.

Somemore, is there anyone can advise how to ensure the developer will pay us back the guarantee returns? will it indicated in SnP?


I'm a newbie to property...pls advise... notworthy.gif notworthy.gif
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newbie111
post Feb 6 2013, 10:20 AM


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why worry.. its still guaranteed.

there is a tenancy agreement to be signed.
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mytaffeta
post Mar 25 2013, 02:25 PM


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this condotel is exactly beside dataran pahlawan and opposite of equatorial hotel?
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danielng.prop
post Apr 19 2013, 01:08 AM


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QUOTE(lucerne @ Jan 16 2013, 11:40 PM)
what is the psf for melaka best western condotel?
just wan to compare
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Best western MITC selling at abt RM530 psf.
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danielng.prop
post Apr 19 2013, 01:13 AM


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QUOTE(mytaffeta @ Mar 25 2013, 02:25 PM)
this condotel is exactly beside dataran pahlawan and opposite of equatorial hotel?
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The one you mentioned is The Heritage Residences. 99 Residence is at Jalan Tun Sri Lanang, same road with Renaissance Hotel. thumbup.gif
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danielng.prop
post Apr 19 2013, 01:20 AM


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QUOTE(omg528 @ Feb 5 2013, 10:24 PM)
Actually there is a limitation...just for a scenario.

Purchase at RM300k, ROI: 7.5%( based on initial purchase price).

Lets say sell at RM400k, ROI will reduce to the buyer...this might caused buyer have to consider again as the ROI is not 7.5%..maybe around 5-6%.
I quite worry about this.

Somemore, is there anyone can advise how to ensure the developer will pay us back the guarantee returns? will it indicated in SnP?
I'm a newbie to property...pls advise... notworthy.gif  notworthy.gif
*
I am totally agreed with you bro. You need to check the t&c of the leaseback program. What is the meaning of guarantee 7.5% return? Is it minimum 7.5%? Coz if the business runs better than their expectation, the return will definitely be more than 7.5%. Will they pay you more return or just pay you 7.5% fix as per agreement? If it is fix at 7.5% for 9 years, then this is not a good investment already.

Please correct me if I were wrong. rclxm9.gif
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BeastB
post Apr 19 2013, 05:34 AM


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>Melaka
>RM540psft

Turn around, walk away....lol
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lynforum
post Apr 19 2013, 06:59 PM


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QUOTE(BeastB @ Apr 19 2013, 05:34 AM)
>Melaka
>RM540psft

Turn around, walk away....lol
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Ya, only for the water fish wink.gif
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seather
post Sep 24 2013, 02:31 PM


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my fren recently intro me to this MITC Ayer Keroh apartment suites project by Plentifield Marketing Sdn Bhd too...

he bought 2 units for 300k each 2 years ago and there is a few left for sales @ 400k...

the apartment is around 930sqft.. according to him, it is now 80% complete and will be ready by Q1 2014.. Best Western will be managing the suits..

i am a property investment noob, so i hope sifus here can help me with some questions below:

1) my fren say there will be guaranteed return of 8~12% p.a. for 10 years....
but 8~12% of what? the buying price? means i will get 8~12% of 400k while my fren will get 8~12% of 300k?

2) in case i sell the unit for 500k in 2 years time to another person... will he get 8~12% of 400k or 500k as return?
if 400k, then it really dampers the resale value...

3) Which party has the final say on the selection of the hotel management team? The buyers, the developer/property management or joint decision?
Best Western is quite well known but what if they bail after 5 years because of poor results, and at best the developers hire a 3rd rate hotel chain to run it, at worst everyone is left hanging in the air...

4) The initial renovation expenses will be borne by the developer/hotel management (or already included in the selling price la laugh.gif), but as i know hotels need to undergo major refurbishment every decade or so, who pays the that major renovation then? if it is a case of "i (management) say X amount, u (buyer) just shut up and pay" arrangement or if not all buyer agrees on the renovation price, then i don't see how the hotel can continue to operate properly.. takkan renovate some rooms n don renovate some?
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