D’latour – DK City @ Bandar Sunway
Ever been intrigued by ads such as these :
Or received SMS such as these :
Prestige Investment with 19.5% Rental Return for 3yrs. Duplex condo the 1st in Bdr Sunway near to Taylor & Monash University. Low & Installment down payment, 7% rebate, Free SPA & Loan Agr, DIBS, Fully Furnish & Advance Rental payment. An irresistible offer u can’t miss.
It was on the back of such SMS that I made the trip to view the preview of D’latour, by the DK Group.
From their company website :
DK Group of Companies comprises mainly of :
- DK Leather Corporation Bhd, holding company of the automotive leather upholstery group ( formerly listed on the Main Board of Bursa Malaysia Berhad in 2004 with a market capitalisation of RM 330.0 Million and was taken private in a cash GO in 2008 )
( Website : http://www.dk-schweizer.com/ )
- DK Leather Seats Sdn Bhd
- DK-Schweizer Europe B.V )
- DK-Schweizer (Thailand) Company Limited DK-Schweizer Middle East LLC ( installation and distribution in Dubai )
- DK-MY Properties Sdn Bhd
- DK-Land Construction Sdn Bhd ( construction arm)
- DK-Land Development (KL) Sdn Bhd
- DK-Land (Penang) Sdn Bhd
- DK-Land (Johor) Sdn Bhd
- DK-Land Property Management Sdn Bhd
At DK-MY, we strongly emphasize “Quality and Speedy Delivery” of products, coupled with a group of experienced and qualified professionals ; it is our motto to make sure all projects are managed effectively and efficiently.
DK-MY aim to offer products that meet the needs and expectations of consumers based on the latest lifestyle trends. At the same time, to always be in the forefront with innovations that set the standard for functional and value enhancing property products.
With 3 parcels of developments in the prime neighbourhood @ Bandar Sunway with a combined GDV of more than RM 2 Billion, the projects are located just a stone’s throw from the renowned and established Taylor University, at the vicinity of Sunway in Selangor.
As seen in the photo, D’latour is the second project in the whole of the DK City @ Bandar Sunway project : D’senza, D’latour and the soon the be launchd D’twist. As you might be aware, D’senza was launched 2 years go to not much fanfare, and yet it was fully sold out within months. That is a more dorm setting – strictly student housing. Whilst D’latour is a SOHO project, with a more upmarket feel.
DK City is located on the ‘other’ side of the LDP, specifically the location behind the LDP toll (behind the currently abandoned petrol station), bordered one one side by LDP, another side Taylors College and south side by Sungai Kelang.
Whilst to me, it is on the ‘poorer’ side of Bandar Sunway – it has the upcoming mall – D’Twist working in its favour, a new connectivity road – from Sunway GEO to here, in a loop; as well as feeder bus service provided by BRT – Connecting back to the BKT station.
It is a 27-storey designer duplex tower, with a total of 629 units. Only units above 20th floors have 2 car parks, the rest of the units come with one car park.
One of the signature features has to be the Azure swimming pool on the common floor (5th floor), as well as the Azure Lounge beneath the pool.
Since it’s quiet launch in March, the the up rate has been pretty good despite the selling price with over 50% taken up.
The current launch is the SOHO block on the left, the lower rise residential towers will be launched later this year.
Unique Selling Point
This is where it gets interesting.
The package comes with :
- Free SPA + Stamp Duty
- Free Loan Documentation + Stamp Duty
- Free MOT
- DIBS (0% interest during construction)
- GRR (Guarantee Rental return scheme) for 3 years
And of course, Part A of the attraction :
A total 19.6% GRR over 3 years, sure to be a sweetener to attract the ants to the honey. If you are able to come up with the downpayment, you can sleep for the the next 6 years knowing you will be getting the GRR for 3 years upon completion of the project.
What about Part B : Advanced Guaranteed Rental Returns ?
Just in case you are worried about the developer not honouring their part in the GRR scheme, they are now willing to advance you the GRR, however instead of getting a GRR of 6.7%, you will only receive something like 5.3% But hey, there’s no free lunch and it’s money upfront!
You can use this bit, to either :
a) pay down the different between principal and loan, therefore taking a lower loan margin.
b) put in FD and earn interest
c) take and reinvest
d) use it to offset against the furnishing (required if you are opting for GRR)
Mandatory furnishing required amounts up to RM55k , and it basically fully furnishes your unit. Double bed, mattress, bed sheet, bed head, built in side table, desks, chairs, built in wardrobes for all the rooms, LCD TV, TV cabinet, lamp, air conditioner units, curtains, wall paper, kitchen cabinet, washer, and dryer.
Catch however is, with getting the money upfront – you will have no returns for 3 years upon VP in 3 years time. Totally dry. Any early selling of the unit before the end of the contract period will mean you have to settle the difference with the developer.
But with Advanced Rental , you actually can get up to 3 years of your GRR upfront, albeit at a slightly lower rate, slightly lower by about 1++%.
And with this Advanced Rental, you can choose to offset it against your next partial downpayment due, or use it to help offset fully furnish requirement (required to take, if you are settling for GRR) ; or if nothing, you can always put in good ‘od FD to earn interest upfront.
So cash needed upfront can be quite minimal, however, do bear in mind during the first 3 years after VP, if you’d opt for the Advanced Rental, you will need to fully pay up the bank loan each month, for up to 36 month – this would be the real test.
For me, this type A (2+1) is the ideal layout : 2+1 rooms. At RM830k, and LTV85% (yup, according to the kind developer, this is commercial titled and the panel of financiers are willing to finance up to LTV85% – this is a real boost for those of you who are capped by the LTV70 ruling). Even better, for certain financiers, if you purchase under company – you are able to get up to 90% financing! The developer has also kindly included pricing comparison with the neighbouring developments, projects in their sales kit.
By the way, to remind one of the SOHO origin of this project, take a look at the layout of type A :
One shows its function as an office, and the other – as a 2 bedder.
– unique proposition of advanced GRR, for those who are worried they might not be able to see the GRR returns, or delay in payments by developers etc
- unique project, with future service residents, mall and office tower coming up nearby
connectivity (feeder bus service to future BRT stops)
steady pool of tenants from nearby Sunway University as well as Taylors University (a more premium brand of students, vs Segi or Inti ? Highly debatable, but used as a selling point as well)
great for a real hands-off investment, can sleep at night with GRR
- ‘it ain’t cheap babe’ … at RM800psf, it is quite comparable to KL city area projects
– with future developments of Sunway Geo, Nadayu 28, Empire Remix all within the 3km radius, all targeting same catchment pool of students, i.e. rentals will be pressed beyond GRR period ?
- just because Sunway Geo is going to offer at RM1000psf doesn’t mean the project is cheap at RM800psf (even with GRR and fully furnished)
danger if cash flow is not managed properly, you will be stuck for 3 years with no income and monthly bleeding (of around RM3.5-4k depending on loan size)
will there be any catchment market beyond student market ?
access is a bane, loop around LDP toll – Sunway GEO : one of the most jammed toll plaza of the LDP, if not – the MOST jammed toll plaza along the whole of LDP
According to a little bird, however, surprisingly quite a number of the buyers have opted out of the GRR option, choosing to go with the project and rent out on their own with no mandatory furnishing requirements. Was also told, quite a few of the purchasers are actually parents of existing Taylors students (perhaps they understand the demand and potential for the project that we don’t).
Well decide on your own, it is quite an easy low entry project, but like everything out there – everything has been priced and the current pricing is reflective of that. Do your own homework and not be carried away by the easy money upfront. Managing the cash flow the next 3 subsequent years will be key. This is probably one of the more innovative financing scheme by any developer in the market today.
- take note, price for the available units have gone up since their initial viewing 3 weeks ago