Key Investment Insights
Key Insights:
1. The business is located in a popular and convenient area, close to amenities and public transport.
2. The presence of a renowned school, Somerset College, in the vicinity can attract families and potential tenants.
3. The business has no fixed office hours, providing flexibility for the owner.
4. The body corporate salary is solid, providing a stable income for the owner.
5. There are 20 years remaining on the management rights agreements, providing long-term stability for the business.
6. The current rental pool has potential for improvement, presenting an opportunity for growth.
7. The business can be easily managed by one part-time operator, making it a suitable additional income stream.
8. The asking price is low compared to the net profit, making it a good investment opportunity with a low multiplier.
9. The manager's unit has a value of $460,000 and includes 3 bedrooms, 2 bathrooms, and an office.
10. The complex has a total of 26 units, with 5 units in the letting pool.
11. The agreement term is 25 years, with 20 years remaining.
12. The complex has amenities such as a pool and BBQ area.
Management Rights Multiplier: 4.22
ROI Estimate: 23.72%