Key Investment Insights
1. Priced for a quick sale at $729K for the management rights and $950K for the manager’s unit, total $1.67M, described as significantly below market expectations.
2. Strong profitability, reported net profit $156,377, with remuneration/body corporate salary $92,525.
3. Manager’s apartment valued at $950,000, three bedrooms, two bathrooms, two car spaces, offering substantial owner-occupied asset value.
4. Long secure agreement structure, 25-year original term with 23 years remaining on the Accommodation Module.
5. Agreements were recently topped up with overwhelming support from the Body Corporate committee, indicating harmonious stakeholder relations.
6. Complex built in 2007, permanent classification, total of 57 units providing a stable asset base.
7. Letting pool of 12 units, 39 owner-occupied units and six outside agent units, implying limited local letting competition and steady owner occupancy.
8. Bayside Wakerley location close to Moreton Bay and Manly Harbour Village, surrounded by parklands, enhancing lifestyle appeal and tenant demand.
9. Located in a highly sought-after catchment for elite local schools, supporting consistent rental demand year-round.
10. Low-maintenance facilities limited to a simple pool and BBQ area, reducing operational complexity and costs.
11. Flexible operating model with no set office hours, enabling strong work-life balance for an owner-operator.
12. Option to appoint a nominee and live offsite, increasing ownership flexibility and potential absentee management arrangements.
Management Rights Multiplier: 4.66
ROI Estimate: 9.31%
