pinnacle @ duxton children....
-
I feel that HDB or any govt owned property rented out to educational centres should not be rented out at high prices. The rent should be enough for HDB to cover cost of maintenance since educational centres are for the residence’s benefits too.
-
mrswongtuition:
I feel that HDB or any govt owned property rented out to educational centres should not be rented out at high prices. The rent should be enough for HDB to cover cost of maintenance since educational centres are for the residence's benefits too.
i 'believe' do have close bidding, sad to say for PAP PCF i guess... -
happydaddy:
I think for PCF it is allocated even before the project is built. For my block, there's a PCF and I checked the documents given to us before we even booked the flat, there's already an indication of it.mrswongtuition:
I feel that HDB or any govt owned property rented out to educational centres should not be rented out at high prices. The rent should be enough for HDB to cover cost of maintenance since educational centres are for the residence's benefits too.
i 'believe' do have close bidding, sad to say for PAP PCF i guess...
Within 2 months from the last block recieving keys, the PCF had started classes. It's really amazing speed. -
Yes i agree that after deducting the rental income. The nett profit goes down quite a bit and tts my main worry…anyway im still finding a suitable place for now.
lots of issues to take note but i dont see many centres closing down…
anyone keen to invest too ? -
insider:
Our guess is that fee's may increase and well yes 24mths to recover all capital and turn to profits by the 5th year. We have to negotiate 3 + 3 and run as long as possible as renovation costs etc was already paid.If you can wait, maybe you should wait for another 3 years. In my prediction, many centres will be up for sale at good prices 3 years later.
The current huge bubble with centres selling at ridiculously high prices at high rental and with irresponsible franchisor/s asking newbie franchisees to go ahead and buy will likely to put this group of people if without deeper pockets to lose their pants later... Ah...that's the time I will enter to scoop up fire sale from these poor chaps...
It used to take about 18 to 24 months to recover capital. This bubble created by some people has pushed this capital recovery period to 48 to 60 months. It's ridiculous coz the lease agreement is likely to last maybe a 3 + 3 years and before one can recover the capital, the lease may not be renewable anymore and will be hung high and dry in the air...
Bad time to enter the childcare market unless you can steal a good deal (which is unlikely when there's someone in the market who can buy at almost whatever price that a seller wants and many are waiting to watch how they are going to bleed to death...)
I found a gd location that its ard 1.90psf.....but not sure if the place could be a childcare....lets see -
kelamel:
hmmm... let analyse... 1.9psf most likely landed area. if your area built in is ~3000sf ~ rental will be around ~$6000.Our guess is that fee's may increase and well yes 24mths to recover all capital and turn to profits by the 5th year. We have to negotiate 3 + 3 and run as long as possible as renovation costs etc was already paid.
I found a gd location that its ard 1.90psf.....but not sure if the place could be a childcare....lets see
Convert a landed to childcare.
1. Built a lousy metal stairway for emergency will cost you $10k.
2. Renovate all the toilet to children toilet will cost another $15-$20k or more if you need to hack the wall.
3. After the lease is over, restore back to original condition like restore back the toilet and remove the stairway, you need to prepare another $20k.
4. Get architect for approval and fire safety will cost you easily $3-5k
5. Renovate the interior will cost you easily $40k
6. Get reading material will cost you $10k or more if you get from yr franchisor
7. Renovation period u still need to pay rental $20k gone assume reno plus approval take 3mths.
8. Operating first 6mths will be a nightmare, yr staffing cost and rental continue to burn you another $100k.
9. 3 mths rental deposit easily ~$20k.
If you have no deep pocket at least $300k, pls do not take the risk. -
Agnes Chua:
The one who got it named LIU YUE suspect is a PRC. :? Just wonder she has any knowledge of running a ccc. One way to overcome high rental is to cut corners. You should know what parents are going to get.
i suspect that for hdb void deck, hdb has spend on certain renovations for the new owners....not sure if this is true -
Hi happydaddy, sounds like you have gone through an painful experience. hopefully is all in the past now…
I agree totally that the rental rates is TOTALLY RIDICULOUS!!! and ultimately, parents like us will pay the price. lucky I am not staying or working there.
Hope we’ll not come to a stage whereby it is more economical to have the wife stay at home instead (for those with more kids) … -
kelamel:
it is true that the hdb will do up most of the thing for you.Agnes Chua:
The one who got it named LIU YUE suspect is a PRC. :? Just wonder she has any knowledge of running a ccc. One way to overcome high rental is to cut corners. You should know what parents are going to get.
i suspect that for hdb void deck, hdb has spend on certain renovations for the new owners....not sure if this is true
1. The toilet
2. the emergency exit
3. the kitchen
4. The ceiling
5. the flooring
All you need to do is decorate the place to suit your environment. Let analyse this centre.
fixed cost...
1. 45k rental. free first mth rental. but must pay 2 or 3mths rental desposit. 90k gone plus 1mth advance rental payment. 135k gone.
2. assume she knows nuts, take up franchise. ~70k gone.
3. renovation cost $10k like partition shelf
4. Convert a room to infant care. take note, it will cost you easily $20k just on the setup and minor renovation.
5. n pls note, it does not mean after yr renovation done, you can start operating, the mcys officer will take yr own sweet time and evaluate yr centre. And all this may drag till 3rd mth if you are unlucky (cut here and there), and worst, you still need to pay the staff and rental (rental 90k plus staff 30k gone)...
running cost..
1. U need to have staff ready if not MCYS will not grant you license. starting maybe $15k per mth assume owner eat grass.
2. franschise 10% gross, not net, profit.
3. assume no student first 3 mths.
base on 3mths.... you need to have 45k gone plus 3k on electricity and water bill and franshise fee. rental $90k
fixed cost $235k, running cost ~$140k.
total $375k... need to have $200k backup for the next 6mths loses due to the high rental. so total you need to have $600k (no guarantee will earn) to run this centre only for 6mths.
I think the break even will be 5yrs if she is lucky to have full capacity assume ea 1k and 100 students capacity and assume 10k net profit.
100 students = 100k revenue and yr staff, trust me, cost will be around $30k or more. loyalty fee 10% gross 10k and 5k misc (food book). $45 + $30 + $10 + $5k = $90k.
This person is better off buying a private property and rent it out. collecting rental. good luck... -
cadenza88:
you are right.... not all centre is earning big buck... im losing $$ from the first day i open till i closed. i will be better off buying private and collecting rental.Hi happydaddy, sounds like you have gone through an painful experience. hopefully is all in the past now....
I agree totally that the rental rates is TOTALLY RIDICULOUS!!! and ultimately, parents like us will pay the price. lucky I am not staying or working there.
Hope we'll not come to a stage whereby it is more economical to have the wife stay at home instead (for those with more kids) ....
Hello! It looks like you're interested in this conversation, but you don't have an account yet.
Getting fed up of having to scroll through the same posts each visit? When you register for an account, you'll always come back to exactly where you were before, and choose to be notified of new replies (either via email, or push notification). You'll also be able to save bookmarks and upvote posts to show your appreciation to other community members.
With your input, this post could be even better 💗
Register Login