Key Investment Insights
1. Net income reported at approximately $234,000 per year, indicating strong cashflow for a management rights business.
2. Business price $670,000 for management rights, managers unit valued at $930,000, total purchase package $1.6 million.
3. Stated return on investment circa 14.6 percent based on supplied figures.
4. Long-term lease security, with 23 years remaining on the accommodation module and a 25 year agreement term originally.
5. Complex comprises 20 well-maintained apartments, with 15 currently in the letting pool ensuring a vibrant income stream.
6. Managers’ unit is a semi-renovated ground-floor 2 bedroom, 2 bathroom apartment with a private courtyard, suitable for on-site living.
7. Low-maintenance facilities and a positive body corporate environment reduce operational burden and risk.
8. Remuneration including body corporate salary listed at $45,809, providing additional predictable income.
9. Prime Cotton Tree, Maroochydore location, steps from the beach and close to Maroochydore Surf Club, shops, cafes and entertainment, enhancing letting appeal.
10. Lifestyle-friendly operation with no fixed office hours, suitable for individuals or couples seeking a relaxed coastal lifestyle.
11. Resort / holiday complex positioning supports consistent occupancy and short-stay demand.
12. Ongoing lease top-ups and the presence of owner-occupied, outside agent and lockup units indicate a diversified unit mix and managed supply.
Management Rights Multiplier: 2.86
ROI Estimate: 34.98%