GRR rate should be 6% to 7% for 3+4+3=10 years. So assuming construction period is 3 years. Total is 13 years.

Exit strategy for this project is to hold for 13 years using the GRR to pay off monthly instalments then sell off to cash out.

Next question is, with current KLCC new launching between 1.5k psf to 2k psf coupled with KL land scarcity.

WHAT WILL KLCC PSF PRICE BE IN 13 YEARS? :-)

3 years + 4 years + 3 years=10 years

GRR will be guaranteed by Best Western Plus for between 6% to 7% which should will be enough to cover bank monthly installments and maintenance fee depending on the bank loan LTV and bank loan.

The 6% to 7% should definitely be written into the agreement.

With 3+4+3 years contract, investor will benefit if after 3 years, they are confident of generating a return of higher than 6% by renting out on their own. This provides for greater flexibility .

Please register at the website so that we can email you the invitation to our early bird preview.

www.meridian101kl.com

Thanks

This post has been edited by marcusho: Feb 19 2013, 03:42 PM