Key Investment Insights
1. The business has a low multiplier for netting over $222,000, making it a potentially profitable investment opportunity.
2. The body corporate salary makes up almost 87.5% of the net income, providing a stable and consistent source of revenue.
3. There is potential for additional income from maintenance, cleaning, and property sales, which could increase the profitability of the business.
4. The current manager sales commission averages $40,000 per year, providing an additional source of income.
5. The latest top-up in June 2022 to a 10-year full-term agreement provides stability and security for the business.
6. The manager is not required to live onsite, providing flexibility and potential for a work-life balance.
7. There are no set office hours, allowing for a flexible work schedule.
8. The business is located close to Chermside shopping centre, providing convenience for residents and potential for increased demand for rental properties.
9. The complex is flood-free and has not had any insurance claims during the February 2022 flood, providing a secure and safe investment opportunity.
10. The managers unit has a value of $55,000 and features 3 bedrooms, 2 bathrooms, and 2 car spaces, providing comfortable and spacious accommodation for the manager.
11. The complex is a permanent type with a total of 175 units and 17 units in the letting pool, providing potential for growth and expansion.
12. The agreement module is Accommodation with a 10-year term remaining, providing stability and security for the business.
13. The complex features amenities such as a pool, tennis court, and BBQ area, providing attractive features for potential tenants.
Management Rights Multiplier: 6.72
ROI Estimate: 14.88%