Ssc Assignment

Introduction

As a property investor, we have been looking for good investment properties to diversify our investment profile. There is a new launching of development of 62 units of 3-storey terrace house namely “Kampar Residensi” at Taman Mahsuri Impian, Kampar, Perak by Benua Tegas Sdn Bhd. We have studied this investment plan and found out that the houses are only suitable to be rented out to students studying at UTAR. This is because the houses are well designed and built with 13 bedrooms to maximize the utilization of space in order to provide the maximum rental yield. In order to have a clearer view of the worthiness of the investment, we have carried out a survey among the students studying at UTAR.

Information that is lacking

To find out the actual condition of the housing market, we were unable obtain a very accurate date from the survey carried out because information provided may be bias. What the respondents filled in the survey form is purely based on their own perspective. Besides, we were unable to obtain information from all the residents in the entire housing area in Kampar. This will also cause to be inaccurate.

Findings

Based on the information on the marketing flyers provided by the developer, it shows that it is a very good investment as the annual margin of income on capital is 27.61% in 30 years. However, we have carried out a survey among the 50 students studying at UTAR to determine their willingness to rent the rooms at RM350 per room per month. Out of the 50 respondents, 37 of them are not willing to rent the room because of higher rental rate compared to their current rental. The remaining 13 respondents are also unwilling to rent the place because of other factors such as inconvenience, longer distance from campus, lack of facilities. Although the flyers stated that the houses are located within walking distance to the campus, most of the students think that it is still very far for them to reach their campus. Besides, the...