hello

firstly, please bear with me as I'm new to property investments. thank you in advance also for your selfless sharing and teachings. looking forward to learn from the sifus here : )

I would like to know if there are any existing EXSIM KLCC Projects owners here.

since they are straight cut investment projects, would like to ask how much can such projects generate monthly, enough to cover instalments + maintenance + sinking fund? and can generate passive income? expressionz, ceylonz, scarletz.
are they well maintained? building quality of their products?

considering upcoming hugoz hence asking for info

also, feel free to share also your views on such projects

here are few of my thoughts and opinions, as far as I know,
1. Hugoz is last few piece development (maybe max another 2 projects?) in the stretch of Jalan Yap Kwan Seng road which supplies to KLCC (popular by demand on Airbnb)
2. Hugoz Airbnb is going to be managed by Mana-Mana operator and profit will be pooled and shared.
3. Hugoz and Mana-Mana (EXSIM's own Airbnb operator) forecasts high returns which of course is super inflated (refer to image below).
4. From researching at Airbnb, I can see that Scarletz some of them are so occupied whereas listings in the last few pages are empty. So then I am skeptical whether or not can they even cover monthly commitments. Also, how they pool units into groups and distribute the profits among owners. As we do not know how the pooling system works and how the units prioritization works, some owners may get more returns than others.
5. I quite understand that since this is cookie cutter investment project, capital appreciation may be hard to be realized. People wouldn't opt for these for own stay.
6. My thought process is for a dual key unit in Hugoz, I would need to fork out a total of around RM 50k including down payment, MOT, renovation, furnishing, etc. to start operating Airbnb and start generating income. Referring to the image below, I will deduct 30% from the net profit and normalize it from its over inflation by developers / agents / operators hence around RM 6k net profit from the Airbnb operations. Monthly commitments including instalments, maintenance, sinking fund, insurance, wear and tear sit around RM 5k. That means I can generate RM 1k every month. This investment would then need around 50 months to breakeven my initial cost of RM 50k. And after that 50 months, the rest are clean net profits. If I am so very lucky, and the unit actually appreciate in price, that's another bonus.

are there any flaws in my thought process? my only concern is 30% deduction from the operator's forecast is not enough to justify and normalize it.

My concern is if some owners of hugoz not willing to refurbish their units after certain years you will drag down by them due to poor maintenance, broken furnitures, smelly bedsheet etc.

Remember this is not hotel where it will allocate certain budget to reno every units for X years, and no formal rules to administrate & manage tenants & owners. The upkeeping will require all of the owners to work together. I will most certainly flip if there is willing buyer.

To add on this, why dun you stay a night at Ceylonz? Why no agent promote ceylonz instead of scarlotz? How well the maintenance after all these years? What income is ceylonz generating?

Your only viable option is airbnb platform, bcuz it has so much inflated price of your prop. Should it is not selling well...

This post has been edited by JustForCheonging: Jul 26 2023, 07:02 AM

Not sure how true is this but i cane across some videos explaining the dark side of GBR (is that what they call it)

no such thing of guranteed rental

also eventho got contract but the company can ditch anytime they want

yes also at year 5 when ur unit needs upgrade or reno again u need to fork out money again

imagine they estimate out of 30 days, 20 days will be occupied

how much will be the wear n tear in 5 years

better have some holding power in case first few months u are in the negative

i think the occupancy rate is quite optimistic. a quick search on the hotel occupancy rate for malaysia, it is around 50-60% only.

be grab driver part timely think can earn net profit more than 1k per month

I book hotel to have staycation on and off
understand that airbnb is a choice for staycation but generally make sense for bigger unit as hotel usually have less choices of bigger room.

if smaller units airbnb like 300 to 400sf sizes, i would rather stay at hotel with better service

anyway different people different need, good luck to the buyers

Airbnb's advantage can put up more people in one room compared to some hotels which may got restrictions.

how many ppl u wan to put in a 300sf lol

Did not think about this, thank you.

Appreciate the replies so far, learning lots, might just pull back on this new project or this type of project rather.

bump looking forward to more feedback

if everything done by your ownselves, no need 50k to fully furnish a semi furnished unit... except maybe the wall painting and electrical installation, the rest u can do yourself...