Purchase Price Each villa is available at an off plan sales price starting at only eight and a half million Thai baht. Each unit will be available on a perpetual 30 year renewing lease (30+30+30…..) Off Plan Investment We expect property values to increase significantly between the date of purchase and completion of construction. Payment Schedule 30% on exchange, 20% when footings down, 20% at topping out and 30% on hand over. Ownership Structure Direct ownership of freehold property by foreign national is not possible in Thailand. Ownership is achieved by a perpetually, renewable lease which offers the lessee full control over the freehold ownership rights, effectively equivalent to freehold ownership. The lease title can be used for mortgage purposes to secure bank borrowing. Ownership Structure the benefits of leasehold ownership are: There are no costs for setting up a Thai company and submitting the annual company audit therefore saving costs and increasing the yield. Villas in Woktum Residence are likely to be rented out. If you had freehold ownership all rental income would have to go to the Thai limited company which would attract tax at a rate of 30%. Any UK dividends would also be subject to tax at 20%. If you lease the property you may be able to take advantage of the double taxation agreement between Thailand and the UK. To onward sell a Thai limited company, you need to have very good audit records and will need to employ a top name accountant. Without this, the new buyer cannot be confident about the company which could result in difficulties selling it (and the property). You cannot lose ownership of the property under a lease but you could lose ownership of a Thai limited company unless it is run properly (this has already happened to some people). The lease can always be converted to freehold…so there is no risk. The lease renewals add infinitum, not just for 90 years. The buyer can later sell the lease offshore or a new lease can be created (90 years) and sold on. It is much harder to forfeit ownership of a lease than a Thai limited company (along with all your investment). Our lease is relatively simple, cost effective, tax efficient and financially safe. Rental management Maintenance: Monthly fees are estimated at Thb 3,000 exclusive of rental management. Rental Management: Rental Management will be charged at 40% of gross rent. Wok Tum Residence has been designed as a high yield buy to let property investment. The development has its own reception, bar and restaurant area and will be internationally marketed by Koh Phangan Holiday Homes a specialist property management and letting agent. The development will enjoy its own real time online booking system and will be marketed internationally by selected travel agents and tour operators. Indicative Rental Income     2009 2010 2011 2012   Occupancy 50% 60% 65% 70% Daily Rate 7,000 THB 887,320 THB 1,118,023 THB 1,271,751 THB 1,438,057 THB Yield   11.1% 14.0% 15.9% 18.0% Notes: Assumes 5% rental growth, rate net of agent fees, 40% management charge Average rents on Koh Phangan are higher than those generally achieved on Koh Samui for similar properties due to the scarcity of high end houses. We expect this trend to continue for the foreseeable future. Furniture Package A bespoke furniture package will be available for all those wishing to participate in the rental scheme and is priced at THB600,000 plus a THB250,000 dressing pack. This will include everything you need to move into your new home including TV, Hi-Fi, kitchenware and bed linen and dressing pack of curtains, blinds and artwork. The furniture package is required if the Villa is to be entered into the rental pool.