Nilai is sure a worth investing place. Other than stable/growing student population, you can also see more commercial activities and new township is happening. I am sure Nilai is one of my choices when I have to choose a place to stay in the “greater KL”. I had recently done some homework comparing new projects in Nilai and I am happy to share with you.

There’s a demand of student accommodation – As you know Nilai is an education Hub, excluding the not popular college, it contains 4 large universities, including INTI, Nilai International University, Manipal International University and USIM.

And according to the student enrollment number minus the provided bed from university, there’s approximately 9000 students who have to find their own accommodation. (agents will say 20,000 but I am not sure because the enrollment number from University I used is data from several years ago, maybe agents have updated information)

Actually the school hostel is not cheap also, monthly rental for twin sharing room (shared bathroom),
Manipal RM450 to 600
INTI RM610-1490
Nilai International School is slightly better, average 200-450, ***(they pay for semester, so semester break is not count)

From current rental, we can predict student can pay more than RM800 for 1 room (>RM800 for single room, >RM400/Bed for sharing)

Now the supply part, in terms of condo, currently,
STARZ Valley is providing approximately 2200 beds for INTI students. (walking distance to campus)
Mesahill (2017 completed phase 1) will provide 2300 beds for Manipal International University students. (walking distance to campus)

Apartment wise,
Desa Palma, also walking distance to INTI, rental is from RM400/room, but has no facilities and less secure to live in. Some other places like Nilai Court, Desa Jati, Desa Anggerik are not walkable to campus, but school often provide 3 shuttle bus per day. Also similar rental.

I can see increase demand of Condo in Nilai, because

A. From my point of view, student population will increase because RM is weakening, thus parents not able to send student oversea.

B. And student will stay outside the campus, because
1. Not enough bed provided by school.
2. More rules and regulation when you stay inside hostel.
3. Easy access to mall and food if you stay outside.

C. And I think they will prefer Condo, because
1. Parents often care about kids safety issues.
2. More Facilities.
3. These Condo are new.
4. I don’t see a reason of stay in cheap apartment just to save few hundred bucks while the tuition fees itself is already high.
But maybe I am wrong.

So now, whether to invest in Nilai? YES if the price offered is still reasonable.

Is Lily or Mesahill good to invest? I will take some rest first, update in another post tomorrow.

Yes, the distance itself is a problem, if you stay in kl you will have less access to your property. But since it's near klia, I think it s possible to visit when you fetch your family member to airport.

how lucky, rental yield must be very high.

Do you also invested in mesahill or lily?

So, continue, is Lily or Mesahill worth investing? For easy comparison, I use both 2 bedder unit (similar layout)

Lily Residensi (5 Star Facilities)
2 bedder condo, 735sqft
Price 370,880, after rebate 18%, 310k ***price of current phase Tower C
Location:
-generally not walkable to any University
-3~4km to INTI, 3~4km to Manipal International Universit & Nilai University; 5~6km to USIM
(calculated by walking distance, not direct radius)
-5min driving to any university.
-Shuttle bus available for RM50 per month to any university and shopping mall.
Maintenance fees: RM0.22 per sqft = RM161.7
Free stuff:1 Carpark, Kitchen Cabinet, SYSWO HIgh Tech Modular Toilet System
Maximum Rental:
Master Room RM 800
2nd Bedroom (2 bed*RM400) RM 800
Utility room(1 bed*RM400) RM 400
Partition 1 small room(1 bed *RM600) RM 600
--------------------------------------------------------
TOTAL RM2600
Hypothetical Rentai yield (rental - maintenance fees) 9.4%

Mesahill (shopping mall integrated)
2 bedder condo, 720sqft
Price: 380,700, after rebate 7%, 354k ***price of current phase, 3A2
Location:
- walking distance to Mesahill
- not walkable: 2~3km to Nilai University, 3-4km to USIM, 4~5km to INTI
- 5min driving to above mentioned university
Maintenance Fee : RM0.28 + 10% sinking fund = RM221.76
Free stuff:1 Carpark, Kitchen Cabinet, Air Cond, Water Heater, Wardrobe
Maximum Rental:
Master Room RM 850
2nd Bedroom (2 bed*RM450) RM 900
Partition 1 small room(1 bed *RM650) RM 650
--------------------------------------------------------
TOTAL RM2400
Hypothetical Rentai yield (rental - maintenance fees) 7.4%

CONCLUSION
-Location wise, Mesahill is walkable to mall and University, - MESAHILL WON
-For rental yield, I believe Lily is higher, because of the 1 more utility room - LILY WON
-Security wise - Lily has 5 tier security, and location less public LILY WON
-Facilities wise - Hard to say, mesahill seems to have fancy pool facilities, but lily comes with whole basketball court and indoor badminton court, and also lily with kindergarten. so..... this time DRAW
-For easy entry, Lily pay only 2% downpayment if 80% loan, while Mesahill pay 13%. -LILY WON
-Furnish - Mesahill has more free stuff, aircond and wardrobe, but I personally like the High Tech SYSWO modular toilet of LILY, but in term of future renovation fees, I think it's less for Mesahill - MESAHILL WON

*This whole hypothetical calculation is base on the assumption that target tenant is students.
*I am calculating rent using current market/compare to student hostel fee, I calculate Lili RM50 cheaper per person for the compensation of shuttle bus fees, otherwise if Lili is further but not cheaper then no student want to rent lo.

By the time both projects completed, (Lily 2019, Mesahill phase 3 2021) Nilai will have more population, contributed by the AEON mall staff. And by that time, rental sure will rise again.

If comparing the current remaining unit, I will go for Lily.

I believed phase 1, 2 Mesahill buyer should have really high rental yield because of the lower purchase price, I also noticed phase 3 has 460sqft room with 1+1 bedroom selling 275k, which I think is worth investing, but they are all sold.

factory？

thats why golf resort also choose that place?

Sime darby?

like walkable distance?

What is the cheapest available unit for this layout?

Wa so expensive now, i remembered is 3xxk for similar smaller layout, the sales is so good ke?

I think it depends on your exit, if subsale maybe 800sqft one better?

Could be from uni? Of just foreign workers?

yeah tgv macam always colloborate with aeon

This post has been edited by mrKFC: Dec 12 2016, 11:01 AM