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?