Purchasing a serviced residence – or any other property, for that matter – is no small decision unless you have loads of money sitting in the bank. Here, we touch on several things to expect when deciding to invest in the property market.
We all want our investments to increase in value. No one would want their capital to depreciate as this would mean losing money, which over the years would have a negative impact on our lives. We expect investments to appreciate.
When investing in the property market, we need to manage our expectations well. This will enable us to avoid any unexpected challenges and or disappointments that may arise due to lack of knowledge in this area.
This is especially so when choosing to invest in a serviced residence. Generally, there are two ways in which an investment in a serviced residence can be seen. Firstly, through rental yields. There are many people who intend to lease out their serviced residents and collect a monthly rental, which is hopefully enough to cover their monthly bank loan repayments.
Secondly, investment gains will be seen when the property appreciates in value. This happens over a number of years and would be considered as a long term investment.
However, it is always good to have a little extra cash on hand when it comes to investing in a property as there are many unseen costs, especially in the first stages of ownership.
It is important to have a management body in any strata housing development to ensure that the property is well managed giving chance for the capital value of the property to grow. Owners of a unit would usually be charged a maintenance cost that is based on a ‘per square feet’ price.
Hence, those with a larger unit would need to pay more than those who own smaller units. In addition to this, developers without experience in this aspect may also find it hard to manage a development well. Serviced residences without good service will usually end up with unhappy residents.
Utilities, Assessment and Quit Rent
An important fact with regards to serviced residences is that it is usually built on commercial land as opposed to land that has been reserved for residential development. As such, serviced residences are therefore considered commercial properties and levied accordingly. Thus, serviced residence owners will need to be aware that they will probably have to pay higher utility bills and high assessment charges.
Charges for Services Provided
As the name indicates, one of the features of serviced residences is that services such as housekeeping and laundry are offered. However, it is wise for prospective owners to check out exactly which services are included and which services are a la carte and are charged based on a per-use basis.
Besides this, there may also be parking charges if car parks are not part of the purchase. Thus, one needs to be thoroughly aware of what accessories are included when investing in a serviced residence.
KSK Land – An Established Developer
One of the ways to ensure a good investment in the property market is to make sure that the property developer is well established with a good track record.
Established in 2013, KSK Land Sdn Bhd, which is a wholly-owned subsidiary of KSK Group Berhad, is one such developer. KSK Land’s venture into the property market is carried out with the vision to develop properties that ‘prioritize design, craftsmanship and lifestyle’. This can clearly be seen in 8 Conlay, their maiden project.
Located right in the heart of KLCC, 8 Conlay is an integrated development which consists of 5-star Kempinski Hotel & Hotel Residences, a four-storey lifestyle retail quarters, and two towers of branded serviced residences, all built on 3.95 acres of freehold land.
Its perfect location means that 8 Conlay is easily accessible via main roads in the KLCC area as well as being close to public transportation such as the Ampang Park LRT Station and the Raja Chulan Monorail Station. It is within walking distance to the Bukit Bintang Shopping District as well as numerous restaurants.
YOO8 – The Serviced Residences in 8 Conlay
Taking up two of 8 Conlay’s three spectacular towers is YOO8 serviced by Kempinski. The latest branded serviced residence in KLCC, YOO8 has 1- to 3-bedroom type units with a build-up size ranging from 705 square feet to 1,328 square feet.
YOO8’s partnership with YOO, an internationally acclaimed interior design studio, means that each unit of this serviced residence is designed with both flair and functionality in mind. Tower A’s design by Steve Leung shows of Asian accents with a modern look across two design concepts, Wood and Water. Inside Tower B, Kelly Hoppen provides prospective buyers with the choice of an Urban concept or a Spring concept.
In-House Services Provided at YOO8
Perhaps the best part of YOO8 is that it is serviced by Kempinski. Well known as Europe’s oldest hoteliers, Kempinski offers residents of YOO8 impeccable 5-star services comparable to no other. Basic services provided at YOO8 include valet services, concierge services, doorman services, and shuttle bus services. There is also 24-hour hour security to ensure the safety of residents and their homes.
A la carte services provided by Kempinski includes laundry and housekeeping, spa and dining reservations, and emergency maintenance services. There is also a private chef service for those who are unable to decide whether they want to stay home or dine out.
Besides this, Kempinski also offers an on-call tailor, personal fitness trainer / masseuse, residential moving coordination and residence provisioning. Parents will be happy to know that there are daycare/nanny services in the event that they are unable to be with their children. Even though there are conditions and charges that apply to these services, Kempinski’s old school, five-star hospitality makes it worth every penny.
Maintenance Fees & Car Park At YOO8
The maintenance fees at YOO8 is RM1.00 per square feet, and with the many facilities offered here such as the gymnasium and two sky bridges, the Water Lounge on the 26th floor and the Green Refuge on the 44th floor, it is well worth the price. In addition to this, each unit comes with one parking lot for residents to park their vehicle.
Deciding on which serviced residence to invest in is never an easy task, and it is important for prospective owners to be aware of all the costs that are involved. While we all would prefer for our investment in a serviced residence to have positive growth, one should always be aware of the management costs, the utilities cost as well as the services that are provided. It is also always better to err on the side of caution and invest in properties that are built by well-established developers such as KSK Land Sdn Bhd.