Key Investment Insights
1. Prime Fortitude Valley location, walking distance to restaurants, shops and transport, enhancing rental demand and owner appeal.
2. Total purchase price $889,000, comprised of $699,000 management rights and $190,000 office on title.
3. Proven profitability, net profit $134,449, with Body Corporate remuneration/salary of $85,937.
4. No manager’s unit to buy or live in, offering flexibility for owner-operators and absentee management.
5. Office on title provides Body Corporate voting rights without requirement to purchase a residential manager’s apartment.
6. Low-maintenance model, no office hours and minimal workload, suitable as a tack-on income stream or low-effort standalone.
7. Pool management outsourced to an external contractor, with costs paid by the Body Corporate, reducing operational responsibility and expense.
8. Long-term agreement structure, 25-year agreement originally, with 20 years remaining, providing stable recurring revenue.
9. Medium-sized permanent complex of 53 units, supporting economies of scale while remaining manageable.
10. Letting pool of 15 units, 18 owner-occupied units and 16 outside-agent units, indicating mixed income sources and some reliance on external agents.
11. Well-presented, quality building with strong appeal to tenants and owners, supporting occupancy and long-term value.
Management Rights Multiplier: 5.20
ROI Estimate: 19.23%
