The Arc

Project initiated with an agreement between Multimedia University and developer Maju Puncakbumi Sdn. Bhd, the service apartments are basically offered in a slightly different methodology. Overall project handled by Andaman Property Management Sdn. Bhd, with a 25 years guaranteed return, the apartments are offered with a starting price of RM350K for 913 sq.ft.

Well, as for the location, a satellite image!

Filtered some details as posted by involved agents:

Land Tenure: Freehold
Maintenance: RM0.253 per sq ft
Loan Margin: Up to 90% from SPA Price
Panel Banks: Hong Leong Bank, Standard Chartered, RHB Bank, EON Bank, Maybank Berhad, Ambank, etc.
Expected Completion: 2013 (3 Years from SPA date)
Selling Price: RM 350,000 (Min) to RM 686,000 (Max), with full furniture furnishing.
 

Here comes the peak...

Guarantee Rental Return (GRR) of 8% p.a. for first term of 4 years with option to renew for 5 terms of 4 years each and last term of 1 year up to an aggregate of 25 years. ( 4 + 4 + 4 + 4 + 4 + 4 + 1 ), with the 25 years lease contract with MMU, whereby guaranteed return is on Nett Sales & Purchase price (after Early Bird Discount; if any).

And some maths...

 
For example, for a unit of 913 sq.ft. of selling price at RM 350,000.00:

Selling Price: RM 350,000.00
Less: 5% discount RM 17,500.00
Less: ID Cost RM 50,000.00
Nett Selling Price: RM 282,500.00

Thus, 8% is on “nett” selling price of RM 282,500.00 = RM 22,600.00. Therefore rental return per month is RM 1,883.33

Less: Monthly Maintenance Charges of RM 0.253 psf @ 913 sq.ft. = RM 230.99

FINAL CHEQUE to buyer = RM 1,652.34 per month.

Upon exercising the option to renew by Developer, during EACH of the renewal term (4 years), Developer will pay 45 months of rental (quarterly payment) as the first 3 months will be utilized for all purposes of furniture replacement/refurbishment, etc. within the property.

Well, everything's written clearly, even the maths are being done, with the deposit's at RM17.5K, being the early birds, you can get another 5% discount.

An existing online flyer for your reference.

All first-time home buyers, look away. All property players with extra income in your pocket, it's not a bad investment as it seems, probably the pricing's a bit higher compared to other choices, but well, there comes in the word "Guaranteed" for rental returns, which is a lot less risky compared to other places with fluctuating demands. 

However, there have been an existence of a lady named "Wendy", setting up multiple blogs related to Andaman Group, determined to "expose the group of their notorious scams", as summarized from what she had expressed. Slander or not, I don't know.

So, search up the word definition of "Guaranteed", talk to the agents, talk to property experts, do your homework and ensure what promised is delivered, if it's up to your expectations, then you are good to go. At least tenancy is something you don't have to worry about.