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

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TSjustinjustin
post Jan 16 2013, 02:48 PM, updated 12y ago

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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.

TSjustinjustin
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??
TSjustinjustin
post Jan 16 2013, 05:56 PM

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launching this weekend 19-1-2013, currently almost 50% sold
TSjustinjustin
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
TSjustinjustin
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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