Key Investment Insights
1. Low multiplier of 3.60, indicating strong price relative to earnings.
2. Net profit $241,243, providing solid cashflow for an owner-operator.
3. Asking price $1,720,000, inclusive of the manager’s real estate.
4. Business value $868,000 and manager’s apartment valued at $852,000, collectively matching the total sale price.
5. High Body Corporate salary $108,117 plus GST, with annual CPI increases, offering stable guaranteed remuneration.
6. Secure 10-year standard agreement with the full 10 years remaining, reducing contract risk.
7. Mixed letting pool of 11 units (7 holiday, 4 permanent), supported by 9 outside agents and 9 lock-up units, providing diverse income streams and upside potential.
8. Consistent year-round holiday bookings in Surfers Paradise, delivering steady demand in a premier Gold Coast tourism market.
9. Simple operation with a highly manageable workload, suitable for an owner-operator or small team.
10. Prime central location within walking distance to beach, shops, restaurants, bars, public transport, medical centre and pharmacy, enhancing occupancy appeal.
11. Spacious manager’s residence, 2 bedrooms, 2 bathrooms, 1 secure underground car space and balcony, included in the sale and attractive as long-term accommodation.
12. Complex amenities include pool, spa, gym and tennis court, increasing guest appeal and competitive positioning.
Management Rights Multiplier: 3.60
ROI Estimate: 14.03%