Q: What types of ownership are available ?
Condominiums are available on a freehold basis for both Thai and non-Thai buyers. However, according to current Thai law, non-Thais may only purchase up to 49% of the condominium’s saleable area on a freehold basis. Otherwise, they may purchase any remaining units on a renewable leasehold basis (currently for a maximum period of 30 years as permitted by law).
Q: What are the costs associated with the lease / freehold registration?
Lease registration fees and stamp duty (currently 1.1% of the lease premium) is payable to the Land Department upon registration of the lease. The cost of lease renewals will be borne by the lessee according to the contracts.
Freehold registration fees (currently 2.0% of the appraisal price) is payable to the Land Department upon transfer and registration of title. The appraisal price is calculated relative to the government’s tax assessment value which is generally below market value. Other applicable taxes upon transfer and registration of freehold title are:
- Corporate Income Tax (currently 1.0% of the selling price or appraisal price, whichever is higher)
- Specific Business Tax (currently 3.3% of the selling price or appraisal price, whichever is higher)
The burden between seller and buyer for the above costs will be specified in the relevant agreements.
Note: Applicable rates stated are current and may be subject to change.
Q: Is a leasehold condominium transferable
Yes. Leasehold condominiums may be transferred subject to the terms and conditions of the lease agreement. Generally, a small fee is payable. In addition, the new owner must agree to be bound by the terms and conditions contained in the original lease agreement.
Q: Is leasehold ownership secure?
Leasehold ownership is a common method of ownership for foreign buyers. Once the lease is registered at the Land Department, the lessee’s rights over the condominium will be officially recognized.
Q: When will the registration and transfer of the condominiums take place?
Approximately 90 days after full payment has been received and construction is complete. We will notify the owner of any documents and fees required for registration.
Q: Should I appoint a lawyer to review the agreements?
Our agreements have been used for a number of years and have been reviewed by major international law firms. We have our own in-house legal team which will assist to clarify any questions you may have concerning the agreements. However, should you wish to obtain specific advice regarding the structuring of your investment, we recommend you consult with a professional legal and/or financial adviser.
Q: What types of visas are available for foreigners to stay in Thailand?
There are various forms of visas available to foreigners who wish to enter Thailand for study, business, investment, retirement and other purposes ranging from 90 days to 1 year multiple entry which include.
- Education visa when enrolled at registered education institution within Thailand
- Business visa when operating a business or employed
- Retirement visa for people aged 50 years or over and meet financial requirements
- Marriage visa for foreigners married to a Thai
- Thailand Elite Visa - a government led program offering memberships including 5 year visas and other privileges
Q: Types and number of units for sale?
The development includes two (2) low-rise condominium buildings comprising a total of 193 units (building 1 = 106 units / building 2 = 87 units) situated adjacent to the Cassia Phuket serviced apartment hotel. Units come in one, two and three bedroom configurations ranging in size from 50 – 119 sqm.
Q: How long does construction take?
Construction can only commence once the relevant government environmental and building approvals are obtained and is estimated to take approximately 24 months to complete from the commencement date.
Q: Is a warranty period offered?
Yes. A five (5) year building structure warranty is offered from the date of completion of construction. Warranties on materials and furnishings will be subject to a one (1) year warranty.
*Subject to exclusion under contract and law.
Q: What is included in the property?
Fixed furnishings (wardrobes, kitchen cabinets and built-in kitchen appliances) and landscaping (where applicable) is included. Loose furniture and artworks are not included.
Q: Is customization of the units allowed?
The building must be built in accordance with building code and permits as issued by the relevant authorities so no changes to the external areas or structural items is permitted. Interior design changes may be permitted after handover (subject to developer approval).
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?
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 infrastructure and common facilities are provided and who will manage these?
The infrastructure and common facilities includes roads and drainage, lighting, landscape areas, swimming pools, deck areas and water and electricity supplies. Services shall include 24 hours on-site security, garbage collection, cleaning and maintenance of infrastructure and common facilities or any other services as required for the common use or benefit of owners. In addition, owners will be entitled to access certain amenities in Cassia Phuket serviced apartment hotel including the shuttle bus service, gymnasium and Beach Club (subject to terms and conditions). The manager of the condominium shall be Laguna (or its designated manager).
Q: What are the estimated fees payable for the infrastructure, common facilities and services provided?
The fees for the cost of maintenance for the infrastructure, common facilities, services provided (“common area fee”) and maintenance fees towards other services and facilities supplied to the condominium “non-common area fees’ in aggregate shall be Baht 40 per square metre per month for the initial year and may be subject to change based upon the actual expenses incurred from time to time. The annual fees are determined by the total expenses incurred and proportionately divided amongst the sellable area of the units in the condominium.
In addition, a fund shall be established for the cost of major repairs, replacement and/or improvement for the infrastructure and common facilities (“special fund”). Contributions will be made on a regular basis so that the fund is built up over time. The rate shall be Baht 100 per square metre per year for the initial year and may be subject to change. If the fund balance is not sufficient for the cost of major repairs, owners may be required to pay an additional amount as requested by the manager from time to time.
The cost of water and electricity supplied to individual condominiums shall be based upon metered consumption.
Q: What property management services are provided?
Laguna Property Management and/or Cassia Phuket serviced apartment hotel will provide a full range of property services to individual owners including, pest control, routine and preventative maintenance, general repairs, housekeeping and other reasonable requests. Rates vary according to the frequency and scope of service. In addition, Laguna Rentals provides owners of non-hotel managed residences with the ability to generate a rental income from their property when not in residence with short-term* and long-term rentals (see below).
Q: Is there a rental program available?
Yes, for those units managed as hotel residences operated exclusively by Cassia Phuket serviced apartment hotel. Investment and lifestyle rental options are available. However, this would only apply to units located in building 1 of Cassia Phuket Residences condominium. Alternatively, apartments are available for purchase in Cassia serviced apartment hotel.
Q: Can I rent my unit out on my own?
Yes. If renting on a long-term basis (6 months or more) there are no restrictions and may be done directly by owners or through external agents.
For short-term* rentals of 1 to 6 months, these must be conducted exclusively through Laguna Rentals who provides owners of non-hotel managed residences with the ability to generate a rental income from their property when not in residence with short-term and long-term rentals.
Any short-term* rentals of less than 30 days must be conducted exclusively through Cassia Phuket serviced apartment hotel (which holds the relevant hotel license). Units managed under the hotel rental program require a standard furniture package.
* Terms and conditions apply
Q: What are the taxes levied on rental income that an owner will be subject to?
Rental distributions made to non-resident (foreign) owners are subject to 15% withholding tax. Rentals earned by Thai tax residents are subject to 5% withholding 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.
Q: What privileges will I receive as an owner?
Owners will receive membership to the Banyan Tree Group’s signature property owners programme, the Sanctuary Club*, which entitles then to discounts and privileges at Banyan Tree, Angsana, Cassia, Dhawa and Laguna resorts, spas and galleries worldwide including:
- 30% discount on best available rates for hotel accommodation
- 25% discount on food and beverage
- 30% 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
- Invitations to pre-openings of new hotels and Banyan Tree Community events
Q: What are the terms of payment?
There are 2 options available:
Option 1: 100% payment upon purchase / during construction100% 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%
- Concrete structure substantially completed
- Roof, brickwork and rendering substantially completed
- 3. Electrical conduits, and pipe work and plastering substantially completed
Option 2: 50% payment upon purchase / during construction with 50% deferred payment over 1, 3 or 5 years50% 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% Price Reservation Deposit Construction Completion Payment 50% (Minus Deposit) Remaining Post Finance 50% Monthly Installment 1 Year (3%) 3 Year (5%) 5 Year (7%) 5,000,000 100,000 2,400,000 2,500,000 211,734 74,927 49,503 6,000,000 100,000 2,900,000 3,000,000 254,081 89,913 59,404 7,000,000 100,000 3,400,000 3,500,000 296,428 104,898 69,304 8,000,000 100,000 3,900,000 4,000,000 338,775 119,884 79,205 9,000,000 100,000 4,400,000 4,500,000 381,122 134,869 89,105 10,000,000 100,000 4,900,000 5,000,000 423,468 149,854 99,006 11,000,000 100,000 5,400,000 5,500,000 465,815 164,840 108,907 12,000,000 100,000 5,900,000 6,000,000 508,162 179,825 118,807 13,000,000 100,000 6,400,000 6,500,000 550,509 194,811 128,708 14,000,000 100,000 6,900,000 7,000,000 592,856 209,796 138,608 15,000,000 100,000 7,400,000 7,500,000 635,203 224,782 148,509
Notes: 1. All amounts are stated in Thai Baht (THB). 2. The above table sets out the estimated payments required under the respective payment plans for selling prices between THB 5,000,000 – 15,000,000. 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.
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