Thursday, July 15, 2010

Casa Residence - Kota Damansara

Recently there is a "new launch" at Kota Damansara, spread around Internet. Some of my friends also get introduce by agent to this condo. Info as below:

Name: Casa Residence
Size: 850sf - 950sf
Selling Price: ~RM350,000 +-
Included: Fully Furnished
Type: Leasehold
Location: Next to SEGI College, Kota Damansara as shown below

The agent that spread this news in Internet claimed you can pre-buy this unit before it is launch, and it is selling fast. The catch is you need to pay RM5,000 as commission to him. Sound fishy to me, as reputable developer will not allow agent to do something like this ...

This condo also come with guarantee return scheme, 8% per annum. Usually how it is done is the developer will rent it from you, then re-rent to company/college and etc. Personally I do not fancy this type of scheme, as this type of scheme is not "guarantee as per said", even though you do sign agreement with the developer, as the agreement usually follow by lot of "terms & conditions". I will write about this later, based on real life experience in this. Unless this property is developed by well-known developer, then I may give it a try.

Conclusion is the success of this condo is very much depends on the developer. It is advisable that you perform some background check on developer before you invest your money, especially their track record.

Nearby this area there is Cova Suites and Cova Villa condominium, is selling at ~RM340+- for 1000sf++ unit. Comparing to Cova, this is slightly expensive, about 10% extra. However dont forget Cova is ready product, which can help you make money immediately. And you do need to worry about abandon project (just in case).

Based on iproperty, cova suites smallest unit is asking for RM1,500 onward. Fully furnish unit probably can fetch better rate, probably RM1,800 - RM2,000. It should be enough to cover your loan installment, but maybe no extra.... However this Casa Residence is come with 8% guarantee return. Not exactly sure how is the calculation make....please let me know if any of you know about this....

Reminder: I did highlight in previous article, about the pro and con of buying condo next to college.
- Easily tenant able and can fetch good rental income.
- Capital appreciation is very much depends on the college quality, what student they are targeting.
- Easily to let go, as a lot of investor looking for this type of rental based income.

1 comment:

  1. Don't be fool by the scheme. The 8% return is not from the purchase amount. Let's say the purchase price is RM350,000, minus the 10% down payment, minus the 30K interior design, which the total amont is RM285,000. The 8% is from RM285,000 not from the purchase price of RM350,000.