Management Rights

Motels

Caravan Parks

Employment

 

Accounting and Finance (Page 10)

Finance, Taxation, Insurance and Accounting related articles

In: Accounting and Finance, The Management Rights Market

Contributed By: Mike Phipps Finance on

Human ambition is an interesting thing. Even while confronting the terror and stress of a new role or business venture many of us are already thinking about the next step. I reckon it’s all part of our innate survival instinct ingrained into us as a species. I’ll bet that even while our distance Neanderthal cousins were dragging that Brontosaurus back to the cave they were already planning the next hunting expedition and perhaps some improved techniques and a more effective and efficient conquest. All the better to improve ones lifestyle and avoid the risk of becoming dinosaur poo! This thirst for improvement and the nextRead More →

In: Accounting and Finance, General Interest

Contributed By: Real Strategix on

I am going to touch on a subject that relates to everyone on a daily basis. As business owners, do we name and shame customers that cost us money? I don’t care what business you operate. I guarantee all of you have at least one customer who believes they are better than you and everyone else. That one customer will simply refuse to pay for services/products rendered. We have quite a few! It is very hard to sit back and watch while they keep trading with their big franchise name knowing that the smaller operators cannot afford the legal fees or resources to fight them. It isRead More →

In: Accounting and Finance, Landlords, Tenants, Renting and Management

Contributed By: Real Strategix on

End of Month is called end of month for a reason ….to pay everyone at the end of the month. As a trust account trainer the most common question asked is “when do I do end of month?”. Some people are adamant that it should be done on the last day of the month as “that is the end of month” …others think it should be done on the first day of the month to include all of the transactions for the month prior; even if it is a weekend and others think that it needs to be done on the first business day ofRead More →

In: Accounting and Finance, Motels and Hospitality, The Management Rights Market

Contributed By: Mike Phipps Finance on

In our last bulletin we talked about our view that we are moving into a tighter credit environment in which bank lending guidelines will become stricter. We also talked about challenges existing borrowers are having with annual business loan reviews and extended interest only periods. The reaction to this bulletin has been remarkable with many business borrowers expressing concern around a range of experiences they are having with their lender. To be frank some of the concerns raised with us are of the borrower’s own making and reflected a lack of understanding of the terms and conditions of the loan. In many cases we haveRead More →

In: Accounting and Finance, Legal, The Management Rights Market

Contributed By: Short Punch & Greatorix on

Some time ago I published an article on what I thought was reasonable for a Body Corporate to request from a buyer of management rights, in considering whether or not a Body Corporate committee should consent to the transfer of management rights agreements to the buyer (See the original article here). This is an important issue, because under the Body Corporate and Community Management legislation, a Body Corporate committee must not unreasonably withhold approval to a transfer. Under the legislation, one of the matters which a Body Corporate committee may have regard to is the financial standing of the proposed transferee. My opinion as expressed in my previous article wasRead More →

In: Accounting and Finance, The Management Rights Market

Contributed By: Mike Phipps Finance on

In our business we spend a lot of time with new clients as they go through the journey of discovery that leads to the decision to purchase an accommodation business. That process can take weeks, months and sometimes years. Because we don’t charge fees to clients we certainly hope that one day they borrow some money and we make a few dollars. However, we have a duty of care to put the clients’ interests rest and if that means helping them to not make a bad decision then so be it. At some point in our work with new clients a suitable asset will beRead More →

In: Accounting and Finance, The Management Rights Market

Contributed By: Mike Phipps Finance on

Back in the day when I was a bank manager one of the marketing strategies the banks employed from time to time was pre-approved finance for home buyers. Basically we collected information from the client and gave them a letter saying they could borrow up to a certain amount subject to a formal finance application and a full credit assessment. The letter was not a finance approval and carried no obligation on behalf of the bank. In other words it was pretty much useless except that it did give potential home buyers an idea of their likely maximum loan and therefore what maximum purchase priceRead More →

In: Accounting and Finance, General Interest

Contributed By: TheOnsiteManager on

According to consultancy firm Capgemini and Royal Bank of Scotland, Australia has the 4th highest rate of non-cash payments on earth, increasing by 7 percent per year. According to the RBA, the average surcharge for Visa / Master Card is 1.9% and 2.9% for American Express. The implications of this, for a business operating on a 10% margin, are staggering. They’re essentially sacrificing 20-30% of their profit just to receive payment. For a motel operating on a 30% margin it’s around 10%. These costs are often simply accepted as part of doing business, but it’s only going to get worse from here. Seemingly overnight, tap-and-go services have become ubiquitous and withRead More →

In: Accounting and Finance

Contributed By: Mike Phipps Finance on

In the lead up to the GFC if you were upright and breathing and had a deposit you could borrow money. The banks were very excited about the way things were going and not a lot of attention was paid to the capacity of the borrower to successfully operate the asset being purchased. After all, the economy wasgoing gang busters, the miners were having a great old time, what could possibly go wrong ? My, how things have changed !The past few years have seen a steady tightening of credit policy among the banks with particular focus on new entrants to business with management rightsRead More →

In: Accounting and Finance, The Management Rights Market

Contributed By: Mike Phipps Finance on

What exactly am I buying? Purchasing a management rights off the plan simply means that you are agreeing to purchase a management rights business and usually a managers unit at a future time once the project is  complete and individual unit sales have settled. Off plans can be holiday resorts, permanent rental townhouse or unit complexes or short stay corporate properties like hotels and serviced apartments. How do I know what I am buying? The sale of off plan management rights is a highly regimented process and contract conditions are designed to ensure that the buyer is protected. Most importantly the sale will most likely be subject toRead More →

ADVERTISMENT: