General


1) What are the advantages of buying a Villa within a Resort complex like Banyan Tree Ungasan? Why not just build myself?

Buying into a well-developed Resort complex which is operated by a reputable Resort Operator yields many benefits. Most Villa Owners do not stay in Bali permanently, and having built a luxurious Villa, leaving it empty for most of the year is not a sound investment proposition. Furthermore, empty Villas are not normally maintained on a daily basis and are prone to deterioration in Bali's tropical climate. Buying a Villa at Banyan Tree Resort Ungasan addresses those concerns, including the opportunity for significant capital gains in case the owner decides to sell.

2) What is included in the Villa Purchase Price?

a) Land plot
b) Villa construction
c) Private swimming pool, jet-pool, ponds, terraces and landscaping
d) Balinese Pavilion (Bale)

3) Is the Sales Price fixed or is there a chance that it will increase during the construction period?

The sales price is not fixed. Naturally, the Developer reserves the right to increase sales price throughout different marketing phases of the project. If, however, a Villa has been purchased and the Purchaser follows the payment schedule stipulated by the Developer, then the sales price is fixed and will not change at all during the construction period.

4) Does the Villa come fully furnished?

No, the Villa is sold unfurnished. A separate Furniture, Fixtures and Equipment (FF&E) Purchase Order shall be executed to furnish the Villa and enable the Estate Manager and the Resort Operator to offer the services of the Villa to Resort guests and yield rental income. FF&E costs will be borne by the Purchaser.

5) Is there a guaranteed yield for the Villa?

Yes, the Developer will guarantee a return of 8% per annum for the first two years, payable in USD, based on the unfurnished Villa Purchase Price.

6) Will the Estate Manager and the Resort Operator be subjected to annual audit?

Yes, a reputable international audit firm will be appointed for annual audits to ensure Villa owners' benefit and peace of mind.

7) When did construction commence?

Construction commenced in the second quarter of 2007.

8) Am I free to sell my Villa at any time?

Yes. As the owner of the property, you are free to sell your Villa at any time.

9) Can I leave the property to my family?

Yes. Owners can leave the property to their family, however it is suggested they seek independent legal advice on wills and estate planning to ensure this is done in a tax effective manner. Owners will be provided with a HGB (Hak Guna Bangunan or Building Utilization Rights) title that will incorporate the underlying land and the building.

10) Is there any tax payable when purchasing or selling the Villa?

Yes. Tax is applicable on the sale and purchase of any property in Indonesia.

11) Will I experience capital gains?

Property in Bali has been experiencing phenomenal capital gains over the past 10 years. We believe that this luxurious Resort property and the projected investment yields will translate into excellent improvements in capital asset values.

12) What if there is a tsunami?

Even the strongest surge in seawater will not impact Banyan Tree Ungasan Resort, which is perched on a cliff more than 70 meters above sea level.

13) What if there are more terrorist events in Indonesia?

If terrorist events occur in Indonesia (including Bali), the negative impact on your property investment will be limited and temporary. Terrorist events can happen anywhere in the world, from London to New York; Spain to Thailand. No location is immune. We feel the likelihood of another event in Bali is low and that the Indonesian government and its people realize the importance of a safe Bali with the tangible benefits associated with a vibrant tourism business.


Management


1. What is included in the management services?

Banyan Tree Resorts Ltd is the leading International operator of boutique resorts and spas. Banyan Tree Ungasan, Bali will provide five-star Resort services and meticulously monitor its overall performance by means of a guest satisfaction index.

Management services include:

  • General Manager with complete staffing

  • Maintenance

  • 24-hour Security

  • Food & Beverage services

  • Finance & Accounting

  • Laundry and dry-cleaning services

  • Housekeeping

  • Local community relations

  • Marketing

  • Reservation system

2. Do I need to pay a maintenance fee?

Under the leaseback arrangement between Villa Owner and the Estate Manager, there is no maintenance fee payable, except for a monthly sinking fund, which in aggregate will be used for major refurbishments every 6 years.

3. How do I receive income from Villa rental? How often am I paid?

Owners' income will be calculated at the end of fiscal year of the 1st year of Resort operations. Thereafter, it will be on a quarterly basis, complete with detailed accounting reports. The Estate Manager will maintain a facility account for each Owner.

4. What is the calculation of Rental income?

Rental Income is calculated based on 40% of Villa (Room) Revenue, excluding applicable taxes and service charges. A pre-determined Villa Proportional Value will be used for allocation of Rental Income for all Villa Owners.

5. Am I able to occupy the Villa on full-time basis?

Under the terms of the Management Agreement between Villa Owner and the Estate Manager, owners are entitled to stay for twenty-one (21) nights per annum. Beyond this entitlement period, the Manager will market and manage the Villa.

6. Am I allowed to transfer my right of stay to family or friends?

Yes, the right of stay is transferable to family and friends as long as the Estate Rules are observed.

7. What happens if I want to stay in my Villa and it is already booked?

Owners are requested to register in advance their intended itinerary for the upcoming year and these schedules will be registered in the reservation system. If there are changes and/or immediate requests, the Manager will exert its best effort to comply. If the specific Owners' Villa is booked or occupied, an available, similar Villa will be allocated.

8. What additional benefits do I get as a Villa Owner?

All Villa owners will receive generous discounts on room rack rates for all Banyan Tree Resorts worldwide. The same holds true for other services such as food & beverage, spa, gallery and ancillary services.

9. What if someone stays in my Villa and ruins or even steals some furniture, fixtures or equipment?

During the check-in process, all guests sign a waiver for damages and provide credit card authorization to cover all possible damages.





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