Cassia
Last updated: 27-October-2017
  • Q: How long does construction take?

    Generally it will take approximately 18-24 months to complete the building and landscaping from the date of commencement of construction.

    Q: Is a warranty period offered?

    Yes. A one year warranty is offered.

  • Q: Is there a rental program available?

    Yes, the apartments will be professionally managed. Investment and lifestyle rental options are available. The investment rental program - entitles owners to 30 days stay per year outside of the blackout dates (during the high/peak season periods) in order to maximize rental returns. Apartments in this rental program will be first priority for rental. The lifestyle rental program - entitles owners up to 90 days stay per year including blackout dates (during the high/peak season periods) in order to enjoy a balance between rental returns and lifestyle benefits. Apartments in this rental program will be second priority for rental.

    Q: How does the rental pool program work?

    The rental returns paid to owners will be calculated based upon a 40% share of room revenue under the same pool category (the other 60% being retained by the manager to cover operating expenses of the rental program). An example of how the return returns is determined is set out below:

     No. of units under the same rental pool category  Units  20
     Total area of all units under the same rental pool category  Sq M  840
     Unit Size of Mr. A  Sq M  42
     Room nights available (20 units * 365 days)  Days  7,300
     Occupancy %  70%
     Room nights occupied (7,300 days * 70%)  Days  5,110
     Average Room Rate  THB  3,000
     Room Revenue (excluding service charge and taxes)  THB  15,330,000
     Revenue Share to all Owners @ 40%  THB  6,132,000
     Less Reserve Fund Contribution @ 3% of Room Revenue ***  THB  (459,900)
     Revenue Share to all Owners under this pool  THB  5,672,100
     Revenue Share to Owner – Mr. A – before withholding tax (5,672,100 / 840 sqm * 42 sqm)  THB  283,605
                         

    Note: the operation of the rental program is at the discretion of the manager and may be subject to change. The above example is indicative only of how the rental returns will be determined and may not reflect the actual returns achieved.

    *** A reserve fund contribution is at 3% on year 1, 4% on year 2, and 5% on year 3 and onwards.

    Q: What rental yield can I expect?

    Since the apartments are in a prime location and are professionally managed, there is potential for good rental returns and capital appreciation.

    The table below, indicates the potential gross rental yields based upon the assumptions shown:

    1. Assumptions
    No. of units under the same rental pool 20
    Total area of all units under the same rental pool category 840 sqm
    Unit size of Mr. A 42 sqm
    Occupancy % 70% 60%
    Average Daily Rate (THB) 5,000 4,000 3,000 5,000 4,000 3,000
    2. Revenue share
    Total Room Revenue 25,550,000 20,440,000 15,330,000 21,900,000 17,520,000 13,140,000
    Revenue Share to All Owners @ 40% 10,220,000 8,176,000 6,132,000 8,760,000 7,008,000 5,256,000
    Less Reserve Fund @3% (766,500) (613,200) (459,900) (657,000) (525,600) (394,200)
    Net Revenue Share to All Owners 9,453,500 7,562,800 5,672,100 8,103,000 6,482,400 4,861,800
    Net Revenue Share to Mr. A 472,675 378,140 283,605 405,150 324,120 243,090
    3. Gross Rental Yield
    Investment @ THB 6 million 7.9% 6.3% 4.7% 6.8% 5.4% 4.1%
    Investment @ THB 7 million 6.8% 5.4% 4.1% 5.8% 4.6% 3.5%
    Investment @ THB 8 million 5.9% 4.7% 3.5% 5.1% 4.1% 3.0%

    The figures above are for illustrative purposes only and should not be relied upon as forming a representation or guarantee as to the actual returns which may differ significantly from the above.

    Q: How is my rental return paid?

    Owners will be paid rental returns direct to their nominated bank on a quarterly basis.

    Q: What are the taxes levied on the rental program that an owner will be subject to?

    All owners are subject to personal / corporate income tax in accordance with the Thai Revenue Code. Rental distributions made to non-resident (foreign) owners and Thai tax resident owners are subject to 15% and 5% withholding tax respectively. Such withholding taxes will be treated as a tax credit for the aforesaid income tax.

    Note: applicable tax rates are current at the date of issue of this FAQ and may be subject to changes. The unit owner shall be responsible for any income and any other taxes, duties and fees of whatever nature which may be levied by relevant authorities on the unit in connection with the rental. All unit owners are advised to seek their own tax advice in this regard.

    Q: Can I rent my apartment out on my own?

    No. All rentals must be conducted through the manager.

    Q: Can I choose my own furniture?

    No. A standard furniture package will be required in all apartments.

    Q: Can I stay at any time?

    Yes, subject to the terms and conditions imposed under the rental program selected. Blackout dates apply for stays in the investment rental program. However, all reservations by owners for their stays are subject to availability. However, the manager will endeavor to provide a similar apartment for your stay if your apartment is unavailable.

    Q: What are the blackout dates?

    High season periods such as Christmas, New Year, Chinese New Year and Easter.

    Q: Why are there blackout dates?

    High season periods are the busiest time of the year. It is during these times when demand is highest and the best opportunity exists to yield maximum rental returns.

    Q: How much advance notice is required for my stay?

    Owners should provide as much notice as possible as apartments may be pre-booked with third party guests, particularly for stays during high season periods.

    Q: Can my friends use my owner’s entitlement?

    Yes, subject to terms and conditions of the rental agreement (e.g. owners’ guests may be required to be pre-registered with the manager).

    Q: Can I book more than one apartment during the same period?

    No.

    Q: What utilities do I have to pay?

    For apartments being rented out, these costs will be covered by the revenue share retained by the manager. For apartments being occupied by owners, utilities will be based upon the consumption / costs incurred.

  • Q: What common facilities and services are provided?

    The common areas within the project will be professionally managed and services will include maintenance, pest control, gardening, pool cleaning, security, etc. A common area fee will be charged to all owners for services provided in respect of common property based upon the costs incurred. For apartments being rented out, standard hotel type services costs will be covered by the revenue share retained by the manager. For apartments being occupied by owners, a schedule of rates will apply for various services offered.

    Q: What are the estimated common area charges?

    These will be charged based upon costs incurred.

  • Q: What privileges will I receive as an owner?

    Owners will receive a ‘Sanctuary Club’ card which entitles holders to discounts and privileges at all Banyan Tree, Angsana and Laguna Resorts worldwide.

    • 30% discount on best available rates for hotel accommodation
    • 25% discount on food and beverage
    • 20% discount on golf green fees
    • 20% discount on a-la-carte spa menu
    • 15% discount on gallery merchandise
    • 15% discount on in-house tours
    • 15% discount on laundry
    • 10% discount airport and ferry terminal transfers
    • Priority wait-list on reservations
    • Early check-in / late check-out

    **Terms and conditions apply.

    Owners can exchange part of their annual use entitlement for free stays at participating properties within the global network.

  • Q: What are the payment plans available?

    There are 2 options available:

    Option 1: 100% payment upon purchase / during construction

    100% payment upon purchase for already completed properties. Progressive payments for properties under construction as per the table below.
    Construction Payment Term Of Selling Price
    1st Payment upon signing contract 20%
    2nd Payment when construction is 25% complete1 20%
    3rd Payment when construction is 50% complete2 20%
    4th Payment when construction is 75% complete3 20%
    5th Payment upon completion of construction 20%
    Total 100%
    Notes:
    1. Concrete structure substantially completed
    2. Roof, brickwork and rendering substantially completed
    3. Electrical conduits and pipe work substantially completed

    Option 2: 50% payment upon purchase / during construction with 50% deferred payment over 1, 3 or 5 years

    50% payment upon purchase for already completed properties. Progressive payments for properties under construction (50% during construction / 50% post construction) as per the table below.
    Deferred Payment Plan Of Selling Price
    1st Payment upon signing contract 20%
    2nd Payment when construction is 50% complete1 10%
    3rd Payment when construction is 75% complete2 10%
    4th Payment upon completion of construction3 10%
    Post construction payments4 50%
    Financing Options Interest Rate
     1 Year (12 monthly installments)  3%
     3 Year (36 monthly installments)  5%
     5 Year (60 monthly installments)  7%
    Note:
    1. Concrete structure substantially completed
    2. Roof, brickwork and rendering substantially completed
    3. Electrical conduits and pipe work substantially completed
    4. See table below
    Price Reservation Deposit Construction Completion Payment 50% (Minus Deposit) Remaining Post Finance 50% Monthly Installment
    1 Year (3%) 3 Year (5%) 5 Year (7%)
    5,500,000 100,000 2,650,000 2,750,000 232,908 82,420 54,453
    6,000,000 100,000 2,900,000 3,000,000 254,081 89,913 59,404
    6,500,000 100,000 3,150,000 3,250,000 275,255 97,405 64,354
    7,000,000 100,000 3,400,000 3,500,000 296,428 104,898 69,304
    7,500,000 100,000 3,650,000 3,750,000 317,601 112,391 74,254
    8,000,000 100,000 3,900,000 4,000,000 338,775 119,884 79,205
    8,500,000 100,000 4,150,000 4,250,000 359,948 127,376 84,155
    9,000,000 100,000 4,400,000 4,500,000 381,122 134,869 89,105
    9,500,000 100,000 4,650,000 4,750,000 402,295 142,362 94,056
    10,000,000 100,000 4,900,000 5,000,000 423,468 149,854 99,006

    Notes: 1. All amounts are stated in Thai Baht. 2. The above table sets out the estimated payments required under the respective payment plans for selling prices between THB 5,500,000-10,000,000. 3. The estimated payments are indicative only and the developer / seller does not accept any responsibility or liability whatsoever for any inaccuracies or omissions. 4. Payment terms are subject to change without notice.