Key Investment Insights
1. Net profit of approx. $282,000, with asking price offers around $1.3M inclusive of the manager’s real estate, indicating strong cashflow relative to purchase price.
2. Reported return on investment over 20% at a 3.16x multiplier, signalling attractive yield for investors.
3. Long-term agreements secured, extended to 31 October 2048, with 25 year agreement module and c.23 years remaining, providing contract stability and predictable revenue.
4. All 17 of 18 apartments are in the letting pool with signed Form 6s, ensuring a fully committed rental inventory.
5. Manager’s apartment on title, two bedrooms valued at $420,000, includes on-title office, private courtyard, storage shed, car space and pets allowed, supporting owner-operator convenience.
6. Low daily operational workload, with easy-to-maintain common areas quoted as one hour per day, enabling part-time management or lifestyle focus.
7. Additional remuneration includes a body corporate salary of $57,000, enhancing total manager compensation.
8. Strong demand drivers and location appeal in Port Douglas, adjacent to the Daintree Rainforest and Great Barrier Reef, supporting year-round visitation.
9. Positive guest sentiment evidenced by excellent online reviews and a strong base of returning guests, supporting occupancy and pricing resilience.
10. Supportive Body Corporate and proactive committee, reducing operational friction and facilitating onsite decisions.
11. Complex amenity mix includes a pool, BBQ area and WiFi, aligning with holiday market expectations and enhancing guest appeal.
Management Rights Multiplier: 3.12
ROI Estimate: 21.69%