Key Investment Insights
1. Prime beachfront Redcliffe location, walking distance to cafes, restaurants, supermarket and beachfront markets.
2. Strong reported net profit of $363,531, which includes a body corporate salary of $66,758 plus GST.
3. Asking price $2,450,000 implies an approximate net return of 14.8% on purchase price, indicating high yield for a management rights asset.
4. Long-term agreement security, 25-year agreement with 20 years remaining, providing a stable income stream.
5. Manager’s apartment valued at $940,000, fully airconditioned three-bedroom, two-bathroom with two car spaces, two private courtyards and exclusive office use.
6. Flexible manager’s residence configuration, can be split into a two-bedroom manager’s unit plus a self-contained one-bedroom studio to add additional income to the holiday pool.
7. Low operational constraints, no set office hours and $15,000 allocated for an additional reception wage to support front-of-house operations.
8. Resort-style facilities including heated outdoor pool, gym, BBQ area and secure parking, enhancing guest appeal and premium rental potential.
9. Letting pool of 19 high-return holiday rentals within a 40-unit complex, with only two units managed by outside agents, suggesting strong internal control of lettings.
10. Body corporate salary reviewed annually by CPI, providing indexed remuneration protection.
11. Revenue noted as growing month on month and year on year, indicating positive demand and upward performance trend.
12. Pet-friendly manager’s unit and two dedicated car spaces improve lifestyle appeal and manager retention prospects.
Management Rights Multiplier: 4.15
ROI Estimate: 14.84%
