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Holy cow! Who pays RM70,000 in rental?
Published:  Nov 18, 2011 10:28 AM
Updated: Nov 19, 2011 2:05 AM

YOURSAY 'I've checked some ads on rental at One Menerung condominiums. The highest asking price for a 8,000-plus sq ft unit is around RM25,000.'

NFC boss defends purchase of condos with soft loan

your say Onyourtoes: National Feedlot Corporation (NFC) chairperson Mohd Salleh Ismail, first, you are in the business of rearing cattle. Remember, it is the government's soft loan given to you to perform this specific task, not owning condominiums.

Second, owning condos can be lucrative, and so are other forms of investments. But surely you heard of the maxim: the higher the return, the greater the risk. Of course, if the money does not belong to you, and if you don't mind losing it, then the risk is unimportant to you.

Third, the investment in condo is illiquid and medium- to long-term - if you need the cash to complete this cattle project, how you do get the money back?

Fourth, I hope your return of 12.9 percent is after deducting all the transaction costs, holding costs (when the condos were not rented out) and taxes. May we know who your tenants are?

Pemerhati: By getting a 12.9 percent yield from the condos, Mohamad Salleh is getting about double the yield that most other condo investors get.

The truth can only be unearthed by finding out who the tenants are, and if they are able to speak freely, to request them to reveal why they are prepared pay such astronomical rents for the condos.

TehTarik: The rental for a 8,352 square feet penthouse at One Menerung is only RM22,000 ringgit per month. The sale price for such a condo might be around RM10 million. Hence the rental yield is around 2.2 percent.

Maybe NFC should provide details of its claims of RM70,000 rent for a RM6.9 million condo. I have not heard of a 12 percent rental yield for an apartment in Bangsar. Please don't take Malaysians to be imbeciles.

Josephine: Condo yields, in the good old days, used to be 8 percent or so. With the sharp increase in condo prices, yields actually have come down sharply. Even a 6 percent rental yield is considered good already.

The minister's husband is so capable that he is able to double the yields that the market can obtain. He is certainly a miracle worker. However, I would like to remind him to please work his magic on the cows instead.

Azizi Khan: There has never been a property in Bangsar or anywhere that rents for RM70,000 a month.

Simple sum will tell you why: RM70,000 x 12 months = RM840,000. This means you are better off getting a housing loan and paying it off completely under five years.

There is an attempt to veer away from the issue of criminal breach of trust. Let's face it, a minister and her whole family are involved in this business. Plus, they have other business that tie to this business for meat consumption.

How can anyone not see that this is highly incorrect, and try to maintain that they did nothing wrong? Only Umno ministers think they can do no wrong.

Changeagent: At a lucrative 12.9 percent return on investment, Mohamad Salleh should explain to the public why the company had only purchased two condominiums and not more.

Wira: The corrupt is trying to justify that soft loan taken to start the national feedlot project is better used buying condominiums because they give better returns.

If that is so, please use commercial bank loans with high interest rates to buy condominium. Don't use public money meant for food project to invest in high-risk projects.

Mamakputra's Stooge: Can someone in NFC please explain to the rakyat why funds would there be funds available in NFC to be placed in the bank? Did the oversight committee approve the soft loan for NFC to be kept?

If the loan was drawn but not utilised, shouldn't the money be returned to the ‘escrow' account instead of it being ‘invested' in condos? Shouldn't there be guidelines clearly stating the specific purpose for which the funds can be disbursed?

If the soft loan can be drawn and kept in the bank, does that mean that the interest earned by NFC is at the expense of the taxpayers? Isn't this a clear-cut case of abuse of public funds?

And the Malaysian Anti-Corruption Commission (MACC) can't even figure this out?

NFC's 'cowgate' silence broken to chosen few

Chee Hoe Siew: Just look at the names of the news media not invited and you will see one commonality - they are all Chinese dailies. So what is the National Feedlot Corporation (NFC) trying to hide from the Chinese community?

L Joy: It is a clever ploy to restrict the press briefing to government-controlled media, which will be told what to stress and what not to in tomorrow's the papers. We are to hear what the government wants us to hear, right?

Bender: Lame excuse. This is just another attempt to fabricate stories and control what kind of information is deemed 'consumable' or 'appropriate' for public exposure.

Obviously, there are more things that they want to hide. To Shahrizat Abdul Jalil and everyone involved in the scam: if things are too complicated for you, then don't bother giving explanations.

What we have read in the media these few weeks is enough for us to get the whole picture. We just want you to quit and give back what you owe and pay your dues.

MY Kee: Two condo units bought at RM6.9mil each and said to be rented out at RM70,000 per month.

Yes, RM70,000 a month in rental! Wow, where can you find such impressive yield? I have checked some ads in the properties websites on rental at One Menerung condominiums.

The highest asking price for a 8,000-plus square feet unit is around RM25,000. I wonder which sucker paid RM70,000.


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