ONCE WAS PARADISE

2022

Tropik Parade Condo refurbishment 10/08/2020

Picture by property TeohTH

TPC is already about 25 years old. Once, it was one a pride and joy of Subang Jaya. Now, it is one of the top 10 eyesore buildings / complexes in Subang Jaya. That is without exaggeration.

It is about time to refurbish the whole complex. It has never had a major refurbishment. Even landed property needs refurbishment / renovation and it comes with a small cost.

No more part time repair men.

The whole complex has to be repainted. No further delays.

The fire fighting system has to be updated.

Electrical wiring in the common and individual units needs to be replaced if required.

The lifts in Block A with all its chewing gum, band aids, Handyplast repairs, has been a bad deal for the Block A residents from the start.

The surrounding trees, park, swimming pool – all have to be restored to its original glory.

Pictures of the delipidated and now, considered dangerous playground for anybody. Even low-cost flats have much better facilities than these.

We can no longer be like “the elephant tied to a rope” and use the reasoning that RM170,000+ in uncollected maintenance fees and sinking fund is the reason for all these hardships. If this outstanding maintenance and sinking fees were collected immediately; would it be enough to bring the condo complex right up to total restoration? It won’t! So, it can no longer be used as a reason for not refurbishing the whole complex immediately.

Get Commissioner of Buildings (C.O.B.) and other government bodies to take over the collection of fees. Then, they will take whatever means and action legally to recover arrears. It is clear that we have been “saving sen to lose Ringgit” by trying to do everything ourselves for far too long..

Block A

The lifts has to be changed.

Repairs to all the roofs.

Repairs to the banisters and all public areas.

Pump rooms need to be cleaned out.

Block B

Repairs to all the roofs.

Repairs to the banisters and all public areas.

Block C

Repairs to all the roofs.

Repairs to the banisters and all public areas.

~~~~~~~~~~~~~~~~~~~~~~

Costs

The time is right to take these measures now. I estimate the total cost to be between RM1 million to RM2 million. The bulk of the cost will go towards Block A.

A main contractor with experience such as Sime Darby or any other with similar capabilities should undertake this project. They will / should hire any necessary sub-contactors for the various small jobs. The main contractor gives an 18 month warranty period and any maintenance due to refurbishment issues.

Financing of this project should be undertaken by the Contractor. Interest rates are low now. Banks are hungry for business.

A tender process should be in place to select the main contractor. This tender process must be carried out by professionals, not the JMB committee. We need the expertise of professionals. Does this mean the possibility of handing the property control back to Sime Darby or another suitable party for the duration of the repayment period? If it has to be in order to get our condo complex back to like new; than I say, “yes, go ahead”.

If the Total cost of refurbishment is RM2 million, and we have a repayment over 10 years.

For simple calculation , interest is 5%

2,000,000 x 5% x 10 years = RM3,000,000

RM3,000,000 divide by 10 years = RM300,000 divide by 12 months = RM25,000

RM25,000 over 12 months per year divide by 147 units = RM170.00 per month.

Actual costing be :

  1. Block A – total cost divide by all the residents of Block A (pro-rate the cost according to the landsize of the unit)
  2. Block B – total cost divide by all the residents of Block B (pro-rate the cost according to the landsize of the unit)
  3. Block C – total cost divide by all the residents of Block c (pro-rate the cost according to the landsize of the unit)
  4. All common area cost will be divided by all units (pro-rate the cost according to the landsize of the unit)

During the renovation time, the maintenance fund can be reduced by a quantum, say 10% / month. Therefore total payment per month will be maintenance + sinking fund + renovation cost.

Note:

  1. The quantum of residents needed to give this the go ahead.
  2. Call for main contractor tender.
  3. Work the best bank rate

The takeaway from this refurbishment:

The whole complex will look as good as new, without the numerous maintenance problems faces now. It will be the feeling of new and pleasant place to live.

As it is, Tropik Parade is competing with medium-cost flats in terms of selling value. The value of our units rapidly increases if we want to rent or sell with the badly needed renovations. Once the refurbishment is complete; the maintenance + sinking fund can be reduced by 10% to 20% for the next 10 years. The balance – a part will be used to run the admin office, guards and maintenance of cleanliness. The balance goes into savings so that we will have funds from the 11th year (after completing payment).

Therefore our monthly payments will be maintenance + sinking fund less 10% to 20% reduction in fees + renovation payment. So, nett extra payment per month could be around RM120 – to RM140 per month for the average size unit. That is the only additional amount it will cost us for the next 10 years.

If we choose to ignore this, we may risk the condo being declared as unsafe and unfit for occupancy by the authorities. We cannot wait for a tragedy to take place because of our lack of far-sightedness in safety.

I hope this project starts soonest possible for a “new” living experience. These are my suggestions. I will not participate in the selection of the contractor process and any on-going work process as I am not qualified enough to do so.

FOOTNOTES:
  1. The Elephant Rope, https://medium.com/motivationapp/the-elephant-rope-c22ee790a226

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