Updated: How I cut a KLCC condominium’s operating costs by 10% -Part 1/2
My first investment property -a 3000+ SF Luxury Apartment just 100 metres from the epicenter of KLCC- had :
a video intercom unit (very few private residences had video intercoms installed in 1999 because the control panels all had to be hard wired - a very expensive job because it involved hacking walls)
built in wardrobes,
imported “Branded European” kitchen cabinets that reportedly, believe it or not, cost the price of a Proton car in 1999,
complimentary access to a gym and sauna operated by the first 5* Ascott Residence in Malaysia, and
here's something I am sure no KLCC high end property ever had , a free Astro subscription to 20+ TV /cable TV channels in ALL the bedrooms and living rooms.
After 10+ years, the Developer finally called formed a Management Corporation and called for an AGM. Yours truly duly stumped up RM50,000+ for stamp duty, signed Form 14A and got my individual strata title. I also decided it was my civic duty as an owner to join the Management Corporation committee set up by the Developer.
At the inaugural AGM, the Developer handed over the Audited financial accounts. So yours truly finally discovered the "free" Astro for owners had actually cost owners about RM100,000+ per annum. It was the most expensive operating expense for the condominium, representating about 10% of the annual income from service charges levied on owners.
I suggested to my fellow newly elected MC committee members to give the Chop to the Developer's "free" Astro. Everyone agreed. I think we convened an EGM to give everyone (of course I mean only the owners who had paid stamp duty, signed Form 14A and got individual titles AND had no outstanding payments who were entitled to vote) a chance to vote on the MC's cost cutting proposal to ditch “free” Astro and to approve the cost of installing a common Satellite dish.
In Part 2 , "How to cut condo operating expenses" I will detail how my MC Condominium committee saved more money by implementing cost cutting measures . I have previously written on how I saved money for some MCs and JMBs.
Please check out my KL property blog -360 KLCC -for more information.
Post Script
1. In 1999 the cheapest Proton car cost about RM19,000, so the kitchen cabinets in my 5* Luxury Condominium cost about 1% of my apartment. In 2022 the cheapest Proton car is about RM32000.
2. After so many years I can't remember the brand name of the $$$ imported European kitchen cabinets the Developer said was installed in my 5* KLCC condominium. I think but cannot be 100% certain the name was P*******.
