Puteri Harbour Community

[xebay11]

Do you know why I am a industrial property man? No maintenance fees, no dependence on mall success, no worries about no crowd.
Industrial tenants are long term and seldom default on rentals. Since 2005, I have only 4 tenants for 3 units (1 corner light industrial lot, 2 SemiD)

You just make sure the location is right and don't simply plonk on some wierd palm oil estate with no access roads. Choose your tenants carefully. Anyway, I am enjoying my rentals every month, only that I do not see it. They bank in straight into my wife's account. No headache about small repairs like broken doors or some leakages. Industrial tenants repair them themselves unless it runs into thousands.

Ok good for you that you know what you are doing, yes industrial or any commercial property has long term rentals compared to residential. And also commercial tenants usually upkeep the place for you unlike residential where the tenants wreck it for you.

You have found a niche market and have experience so congrats to you. I would rather sell off once my tenant of ten years terminates my contract anytime soon and if I can't get tenant I will restrategise and diversify. Maybe look at retail units in OZ.

 

[Tekkun]

Ok good for you that you know what you are doing, yes industrial or any commercial property has long term rentals compared to residential. And also commercial tenants usually upkeep the place for you unlike residential where the tenants wreck it for you.

You have found a niche market and have experience so congrats to you. I would rather sell off once my tenant of ten years terminates my contract anytime soon and if I can't get tenant I will restrategise and diversify. Maybe look at retail units in OZ.

You are very succesful as well.

Once I wanted to buy a shophouse in a super busy area. But the problem is while the ground floor fetches good rentals, the turnover of tenants is high with limited car parks and the upper floors are not much in demand with poor rates. Some one joked, after 10 years you have more air con pipe holes that walls left. So I chickened out. I still have 2 units of condo (which is middle of construction) and the other in London near Wapping, my holiday home and some terrace houses in KL. So am I happy with all these properties? Frankly I find managing rentals a chore and how many can I stay in. But in the end of the day, it is nice to see good capital appreciation especially those industrial properties and the one in London.

You are right. Perhaps the only one I can't see making money is Puteri Harbour but at least if I go to Singapore, I have a place to stay nearby once it is completed. I am still looking for an elusive one that is a 5 star retirement village. That I think is my final investment.

 

[xebay11]

You are very succesful as well.

Once I wanted to buy a shophouse in a super busy area. But the problem is while the ground floor fetches good rentals, the turnover of tenants is high with limited car parks and the upper floors are not much in demand with poor rates. Some one joked, after 10 years you have more air con pipe holes that walls left. So I chickened out. I still have 2 units of condo (which is middle of construction) and the other in London near Wapping, my holiday home and some terrace houses in KL. So am I happy with all these properties? Frankly I find managing rentals a chore and how many can I stay in. But in the end of the day, it is nice to see good capital appreciation especially those industrial properties and the one in London.

You are right. Perhaps the only one I can't see making money is Puteri Harbour but at least if I go to Singapore, I have a place to stay nearby once it is completed. I am still looking for an elusive one that is a 5 star retirement village. That I think is my final investment.

You are humble and I don't say PH won't make money, my comments were actually directed at investor888 who said that those who didn't buy PH were sore losers, I was like huh?

Btw what do you mean about air conditioning pipe holes in the walls. You mean every tenant had their own ac requirements and keep on installing and reinstalling air con systems? If you do not raise rents unreasonably business tenants seldom leave.

 

[Investor888]

Hi I think you really think too much. I dint even use the word "losers" in my reply.

You are humble and I don't say PH won't make money, my comments were actually directed at investor888 who said that those who didn't buy PH were sore losers, I was like huh?

Btw what do you mean about air conditioning pipe holes in the walls. You mean every tenant had their own ac requirements and keep on installing and reinstalling air con systems? If you do not raise rents unreasonably business tenants seldom leave.

 

[xebay11]

Hi I think you really think too much. I dint even use the word "losers" in my reply.

Sore is the same.

 

[Tekkun]

You are humble and I don't say PH won't make money, my comments were actually directed at investor888 who said that those who didn't buy PH were sore losers, I was like huh?

Btw what do you mean about air conditioning pipe holes in the walls. You mean every tenant had their own ac requirements and keep on installing and reinstalling air con systems? If you do not raise rents unreasonably business tenants seldom leave.

It is not about rentals. They are all following market rates or minimum to service loans. It is the business turnover of the tenants themselves that forced them to leave. And no one bother to patch back the holes after they left.

PH is not a losing concern. Those vested in PH knows the potential of this area. It is afterall a freehold waterfront lifestyle living place. Maybe the capital appreciation is not as high one expect, but from what I gathered from many buyers, they are not really bothered especially for Encorp project as it is more for own stay. This project is marketed with only few floors are locals and the rest for Singaporeans, Hong Kong, Indonesia and Vietnam.

Many investors tend to mix up PH and Medini. I can only say this. Look beyond what is infront of you before you sign. There are no winners nor losers in this property game. The only losers are those who procrastinate.

 

[xebay11]

It is not about rentals. They are all following market rates or minimum to service loans. It is the business turnover of the tenants themselves that forced them to leave. And no one bother to patch back the holes after they left.

PH is not a losing concern. Those vested in PH knows the potential of this area. It is afterall a freehold waterfront lifestyle living place. Maybe the capital appreciation is not as high one expect, but from what I gathered from many buyers, they are not really bothered especially for Encorp project as it is more for own stay. This project is marketed with only few floors are locals and the rest for Singaporeans, Hong Kong, Indonesia and Vietnam.

Many investors tend to mix up PH and Medini. I can only say this. Look beyond what is infront of you before you sign. There are no winners nor losers in this property game. The only losers are those who procrastinate.

PH does have excellent location I must say.

 

[jasonjst]

Thanks Xebay11, very details and valuable input .
We didn't think that deep at that point of time . Also didn't realized that the food court is Halal only ! That's very bad
for business . Hopefully the African / Turkish / Middle East theme is not cast in stone. They actually didn't tell us can't sell Chinese food like those Taiwan snacks , Tim Sum.
On the brighter side , it might not be a bad thing to target Malay crowds . Reasons 1) so far no major mall in JB targeting the Malay crowds except Ansangna Mall which is over crowding , may create a spill over effect . 2) The Malays are actually better customer than the Chinese ( no racist here ) . I have a fair share of Malay customers , though they have lower purchasing power , they don't bargin much and have a larger crowds . ( Haha just my hopeful view lah )

The financial strength and track records of Hatten is indeed in very risky position , hope they can completed the Capital City , do it well to show everybody and built up their much needed reputation.

 

[Tekkun]

Thanks Xebay11, very details and valuable input .
We didn't think that deep at that point of time . Also didn't realized that the food court is Halal only ! That's very bad
for business . Hopefully the African / Turkish / Middle East theme is not cast in stone. They actually didn't tell us can't sell Chinese food like those Taiwan snacks , Tim Sum.
On the brighter side , it might not be a bad thing to target Malay crowds . Reasons 1) so far no major mall in JB targeting the Malay crowds except Ansangna Mall which is over crowding , may create a spill over effect . 2) The Malays are actually better customer than the Chinese ( no racist here ) . I have a fair share of Malay customers , though they have lower purchasing power , they don't bargin much and have a larger crowds . ( Haha just my hopeful view lah )

The financial strength and track records of Hatten is indeed in very risky position , hope they can completed the Capital City and do it well to show everybody and built up their much need reputation.

I am newbie on retails. Just curious on the rental rate psf. What returns are you guys looking at?

 

[jasonjst]

I am newbie on retails. Just curious on the rental rate psf. What returns are you guys looking at?

Depend a lot on luck and your ability to spot the right retail location at the right price ( a price where businesses can operate with good profit after paying you rents) . For Capital 21 project , Hatten rental guarantee is 8% for first 2 year after TOP . I would say higher return , less headache , but at a higher risk because 1) higher interest rate of commercial loan , 2) If no tenants , what can you do with it ? you cant use it as your home right ?

 

[Tekkun]

Depend a lot on luck and your ability to spot the right retail location at the right price ( a price where businesses can operate with good profit after paying you rents) . For Capital 21 project , Hatten rental guarantee is 8% for first 2 year after TOP . I would say higher return , less headache , but at a higher risk because 1) higher interest rate of commercial loan , 2) If no tenants , what can you do with it ? you cant use it as your home right ?

I know there one project in Selangor also offering same concept. One City shopping complex by MCT near Subang Jaya. GRR for 2 years. But this shopping complex is so badly managed as there's no central control of building promotion activities. Everyone is doing their own thing. In the end, the skypark pub is the best and basically nothing much is happening down there.

So it is much of a investment whose potential depend on performance of others. I am too weak for this.

 

[Newbie11]

Have u visited hatten current mall? Ghost town. What makes u think new mall will be better? Can melaka population and tourism support so many malls

 

[jasonjst]

Have u visited hatten current mall? Ghost town. What makes u think new mall will be better? Can melaka population and tourism support so many malls

I have not visited the Melaka project site , nobody is thinking new mall there is better . Bro Xebay11 however have
go all the way there and reported a no go , location wise .

 

[xebay11]

Have u visited hatten current mall? Ghost town. What makes u think new mall will be better? Can melaka population and tourism support so many malls

Yep, Malacca with current population is over built with malls and hotels. Hatten Square is a ghost town because it is simply too small to be interesting to attract crowds.

Do not invest further in any malls unless in the middle of Bandar Hilir or the heritage site area. Because even to drive 2 km to your destination is a nightmare and can take you 20 to 30 minutes in normal traffic or 1 hour plus in peak holiday situation due to poor town planning. So going on foot is the best proposition in Malacca, which means all malls must be within 300m of the heritage sites, or else doomed to fail.

 

[kong1509]

Yep, Malacca with current population is over built with malls and hotels. Hatten Square is a ghost town because it is simply too small to be interesting to attract crowds.

Do not invest further in any malls unless in the middle of Bandar Hilir or the heritage site area. Because even to drive 2 km to your destination is a nightmare and can take you 20 to 30 minutes in normal traffic or 1 hour plus in peak holiday situation due to poor town planning. So going on foot is the best proposition in Malacca, which means all malls must be within 300m of the heritage sites, or else doomed to fail.

YES, Hatten Square is a ghost town in Malacca.

How about the new Shopping Mall, Imperio Mall@Hatten City where is also built and managed by Hatten Group in Malacca ??

https://www.youtube.com/watch?v=wclfTeavRGc

 

[Dfiris]

So far I am still able to hold onto my investments as Somerset PH pays regular rental. Am sure other SPH owners agree with that too. It is a good consolation and assurance for the next 10 yrs. Looking at how similar GRR projects in Medini are selling at MYR1300psf onwards (like shama & ramada), m further consoled that we bought ours at MYR7-800psf... freehold.

 

[kong1509]

Ramping up to high-speed rail (HSR) connecting Kuala Lumpur to Singapore

PH does have excellent location I must say.

MALAYSIA’S high-speed rail (HSR) connecting Kuala Lumpur to Singapore is on track, with a new company known as MyHSR Corp expected to take the lead in making the project a reality.

The company’s first chief executive Mohd Nur Ismail Mohamed Kamal speaks about what he has in mind for what may be South-East Asia’s first bullet train.

Formerly with the Land Public Transport Commission (SPAD, Suruhanjaya Pengangkutan Awam Darat), Mohd Nur was its chief executive since its beginning in 2010 before taking over MyHSR on Sept 1.

SPAD CEO Mohd Nur Ismail Mohamed Kamal during the press conference after flagging off the first Proton Exora 1.6 MPV taxis under the Teksi 1Malaysia scheme at the Integrated Transport Terminal, Kuala Lumpur. NORAFIFI EHSAN / The Star

According to Mohd Nur, MyHSR will be looking for development opportunities connected to HSR services and stations. — Filepic

Now supported by a skeleton crew and only doors away from his previous office, Mohd Nur implies that Malaysia has big dreams for not only its own HSR but also the country’s economic development as well.

Among these would be the development of HSR stations and towns within a 5km radius around them, as well as immigration counters from Malaysia and Singapore in both countries.

Read on to find out more about the upcoming 330km project, which is expected to be opened for international tender late next year.


Sources From :-
============
http://www.thestar.com.my/News/Natio...to-full-speed/

 

[xebay11]

So far I am still able to hold onto my investments as Somerset PH pays regular rental. Am sure other SPH owners agree with that too. It is a good consolation and assurance for the next 10 yrs. Looking at how similar GRR projects in Medini are selling at MYR1300psf onwards (like shama & ramada), m further consoled that we bought ours at MYR7-800psf... freehold.

That is why I say Singaporeans do not understand a thing about timing, JB was pretty back water for the good part of thirty years, then from mid 2000s it started to develop, Bukit Indah etc, this was the point where property prices did escalate and some owners made money, now everyone rushed in, including developers, as there is time lag when construction projects complete, by the time the property completes, it is now in a totally different market, now the market is flooded and oversupply by huge amounts, coupled with lots of protection measures against foreigners, including having to resell back to locals, this severely handicapps any chance of good appreciation as the locals in JB, are unlike Singaporeans, they do not have the stigma or distinction of public vs private housing, hence no incentive to upgrade, they buy a house and stay there for life and enjoy other pleasures with their money. The Era of good appreciation is over in JB due to huge oversupply, if you still think there is CA, then you must be super optimistic or in self denial.

Also currently if you compare other properties selling at higher price than the one you bought, don't console yourself, new properties do command much higher premiums then old ones due to the fact that JB properties are seldom well maintained and in terms of property condition, deteriorate very fast, anyway newer developments sale have slowed down tremendously, so the higher prices are asking prices only, how much is actually transacted.

Also since prices have appreciated and foreigners have to buy RM 1 million and above, social unrest, unstable government and falling ringgit, this forum is virtually a ghost town devoid of new buyers, most of the posts here are usually owners congratulating themselves and comparing notes escaped the RM 1 million barrier, moving forward very few buyers now stating they just booked a new unit.

So please understand the concept of timing in property development, time and situations do not stand still, same even for safe haven Singapore, property prices have begun to slide and interest rates are set to increase, the whole property market will deteriorate further.

 

[kawan2sgmy]

Wow, what you have written practically sums up the present property scene in My & Sg. Unbiased view from another property expert!

Very well written! Thank you!

That is why I say Singaporeans do not understand a thing about timing, JB was pretty back water for the good part of thirty years, then from mid 2000s it started to develop, Bukit Indah etc, this was the point where property prices did escalate and some owners made money, now everyone rushed in, including developers, as there is time lag when construction projects complete, by the time the property completes, it is now in a totally different market, now the market is flooded and oversupply by huge amounts, coupled with lots of protection measures against foreigners, including having to resell back to locals, this severely handicapps any chance of good appreciation as the locals in JB, are unlike Singaporeans, they do not have the stigma or distinction of public vs private housing, hence no incentive to upgrade, they buy a house and stay there for life and enjoy other pleasures with their money. The Era of good appreciation is over in JB due to huge oversupply, if you still think there is CA, then you must be super optimistic or in self denial.

Also currently if you compare other properties selling at higher price than the one you bought, don't console yourself, new properties do command much higher premiums then old ones due to the fact that JB properties are seldom well maintained and in terms of property condition, deteriorate very fast, anyway newer developments sale have slowed down tremendously, so the higher prices are asking prices only, how much is actually transacted.

Also since prices have appreciated and foreigners have to buy RM 1 million and above, social unrest, unstable government and falling ringgit, this forum is virtually a ghost town devoid of new buyers, most of the posts here are usually owners congratulating themselves and comparing notes escaped the RM 1 million barrier, moving forward very few buyers now stating they just booked a new unit.

So please understand the concept of timing in property development, time and situations do not stand still, same even for safe haven Singapore, property prices have begun to slide and interest rates are set to increase, the whole property market will deteriorate further.

 

[matix]

So far I am still able to hold onto my investments as Somerset PH pays regular rental. Am sure other SPH owners agree with that too. It is a good consolation and assurance for the next 10 yrs. Looking at how similar GRR projects in Medini are selling at MYR1300psf onwards (like shama & ramada), m further consoled that we bought ours at MYR7-800psf... freehold.

Agree. You are in a better position than me even though I bought my Teega at same price range. No rental guarantee... I am hoping with ferry connection, rental will be easier if workers in Harbourfront offices tempted to move in. But then again, the pool is small and Teega got like how many apartments?