Message by PEN Properties E (31400)
Guaranteed Rental Returns (GRR) are NOT LOVED by many for 3 very good reasons. We recommend that any GRR with the below to be evaluated very thoroughly even if the GRR % is very high, say 8 percent.
1. Price per sq ft too high. You are the one financing the GRR because of the very high price per sq ft that you are paying. For example, the price per sq ft for properties around the same area is RM800 per sq ft. However, the GRR property is being sold at RM1,200 per sq ft. Guess who’s the one paying for the GRR?
2. Developer and the GRR management NOT the same. A developer can build a project and get in a branded hotel management as their partner. In other words, the developer gets to tell all potential buyers that they have a branded hotel management managing the place. Great deal? Well, the developer’s responsibility ends when they have sold all the units. Assuming the GRR did not work out, the branded hotel management can also walk out and they are not the ones supposed to pay back to the buyers for the GRR.
3. Seriousness of the GRR administrator. The GRR administrator are not usually serious because they may not be a co-owner of the GRR development itself. This is very dangerous to all buyers because they are not experienced to run the GRR scheme by themselves should some unforeseen circumstances happen.
PEN Properties would like to introduce you to a GRR scheme which does not fall into the three categories listed above.
1. Reasonable price per sq ft. This project that we are introducing to you are similarly priced with another nearby residential project. In other words, buyers are not the ones financing the GRR returns. Facilities and amenities for this project we are introducing will be managed by a hotel and resort brand for the past 25-years. (We will even show you all their awards)
2. Developer and the GRR management ARE THE SAME. Yes, the developer / builder is also the operator / administrator. In other words, this same entity would have to ensure it works. Plus the fact that the operator / administrator has hotels and resorts in Thailand and Indonesia too. Yes, it is a low-profile Malaysian company which has been around for the past 25 years.
3. GRR administrator wants the project to be successful because they are co-owners of the development. They have a lot of future plans too and they are not selling just this development and leave it to the buyers to fend for themselves. In fact they are so serious that should the buyer sold the development, the new buyer MUST continue with the GRR contract. They cannot say, ‘I am buying for my own stay….’
Interested to know more? Total number of units available for sale is only 120 currently. Over 20 units have been sold. Here is the contact – Operations Manager, Mr. Vincent Seah: 016 – 412 6586 Do browse our site to know us better.
Please click here to download a very brief presentation. We are ready to provide to you a 30 minute full introduction and answer all your questions.
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