KL Metro's water home project gives high returns

Yet another interesting article i found...

WANT your investment value on a property asset to grow substantially? You can consider putting your money in a water home project near Port Dickson, Negri Sembilan.

By paying from RM280,000 to about RM500,000 for each unit of Banyan Curve Water Homes, property developer Kuala Lumpur Metro Group (KL Metro) has guaranteed investors of a high rental return of 8 per cent per year.

Purchasers can buy the units for their own use or alternatively opt for the rental guarantee scheme where they can lease back the unit to KL Metro for three to 13 years and enjoy the fixed rental income at 8 per cent per year of the purchase price, executives of KL Metro group said.

During the leaseback period, owners will also enjoy 10 nights of free stay per year.

KL Metro, through subsidiary Kuala Lumpur Metro Development Sdn Bhd, has started work on building 249 units of Banyan Curve Water Homes, after having completed the first 392 water chalets under the Legend Water Chalets development in October 2006.

KL Metro group chairman Mat Hassan Esa said it had already sold 50 per cent of the water chalets, garden chalets and serviced suites under the Banyan Curve development, mostly under rental guarantee scheme.

Most buyers are from the Middle Eastern countries, Japan, China and South Korea.

"We are targeting to sell about 70 per cent of the Banyan Curve units to foreigners. We should generate total sales of RM140 million for the project," Mat Hassan told reporters after the groundbreaking ceremony of the project by Deputy Tourism Minister Datuk Donald Lim last Thursday.

"KL Metro will become the biggest water chalet developer with a total of 641 units under the Legend Water and Banyan Curve projects," he claimed.

"Over 97 per cent of the Legend Water Chalets have been sold and most of them are under leaseback arrangement. About 100 of the buyers are from over 20 countries from North America and Europe to West Asia and Asia Pacific. The rest mainly comes from the Klang Valley," Mat Hassan said, adding that some RM120 million in total sales had been generated from the project.

Banyan Curve, sited on leasehold land, has a gross development value of RM110 million and is due for completion by December 2008. Located 4.8km from Port Dickson town, the chalets are built on stilts and are furnished with special stone works imported from Bali.

Each unit has a private pool, an open garden and a see-through flooring in the centre of the bathroom.

Facilities at Banyan Curve include a restaurant, lobby lounge, business centre, conference rooms, banquet hall, convenience store, mailroom, reception area, housekeeping and restrooms.

"We believe we are among the few who have develop chalets with private pools," Mat Hassan said, adding that the price of the chalets and suites is inclusive of fittings, furniture and furnishings.

Like the earlier Legend Water Chalets, Banyan Curve will be managed by the Legend Group of Hotel and Resorts, a member of the Metroplex group.

Mat Hassan also said KL Metro is teaming up with the Malacca State Government to develop a water chalet project in Tanjung Keling by the end of the year.

It is also scouting for land in the Klang Valley, Ipoh and Penang for possible maiden ventures into residential housing development.