In the glossy brochure handed to many prospective residents, when considering purchasing a villa or apartment within the Mt Gilead Estate, it stated that residents will keep 100% of capital gains when it comes time to exit the village and/or sell their villas/apartments.
Editor's Note: We're not convinced that the the glossy brochure is accurate or correct.
In simple terms, the brochure clearly indicates that a resident will keep 100% of any capital gains made during their residency here at the village, when it came time to exit and/or sell their premises.
Unfortunately, written in many of our residents contracts, the exit fee is calculated on the sale price of the villa/apartment and not the purchase price. Herein lies the problem.
As soon as any calculation of exit fees is made from the sale price of the villa/apartment, it straight away erodes part of any capital gains that may have been made, during the resident's stay at the village.
If that's the case, and any resident loses part of their capital gains, when calculations are made to exit the village, then the statement that 'residents keep 100% of any capital gains', must be false.
Yet, when it comes time to sell and leave the village, your exit fee is calculated on the sales prices, as opposed to the purchase price.
Calculating the exit fee on the sales price instantly includes any capital gains that may have been made during the residents stay at the village.
Surely, the exit fee, should be calculated on the purchase price of the apartment/villa, for the statement that 'resident's keep 100%$ of the capital gains, the operator does not take any capital gains' to be true.
