Remuneration / Net Profit at 77% - 23-year MR Business

$3,090,000

Permanent management rights, Teneriffe QLD

This business offers a unique and stable income structure, with 77% of total revenue derived from remuneration and net profit. The net profit stands at $342,000, with remuneration totaling $262,000, and increased annually in line with CPI. Additionally, letting pool management commissions generate $80,000. The business is priced at $1.99 million.

-Agreement Validity: The management rights agreement remains valid for 23 years, with the caretaking agreement renewed this year.
-Property Details: The associated caretaker unit is a three-bedroom apartment with one bathroom, two car parks, and a titled office, priced at $1.1 million.
-Responsibilities: The Body Corporate maintains the landscaped gardens, swimming pool water and equipment. The building manager is responsible for common area maintenance, grass mowing and pool clean.
-Flexible Management: No requirement to live on-site, no office hours, and no elevator or gate.
-Ideal Location: The waterfront complex is conveniently located near the Brisbane River and close to public transport and amenities.
-Additional Rental Income: The caretaker unit and parking spaces are rented out, generating an additional $31,000 per year (not included in net profit).

DISCLAIMER
The agent gives notice that:
1. The figures and information disclosed in this Information Memorandum are provided by the vendor. All intending purchasers are to make their own enquiries and assessments as to the accuracy or otherwise of the information supplied by the vendor.
2. It must be noticed that agent has no access to full sets of accounts or legal documentation for verification purposes. No liability for the information will be accepted by the agent and parties should make their own investigations as to the accuracy of these figures and information.

More Information

Financial Overview

Total Purchase Price: $3,090,000
Net Income: $ 342,393 (actual)
_{This is the combined total income acheived by the business after expenses, before tax.}
Included Real Estate: $ 1,100,000
_{The value of on-title property included with the business. Its price is included in the Total Purchase Price.}
Multiplier: 5.8
_{Estimated number of years till the Net Income reaches the Purchase Price of the business component. Other factors such as lifestyle, workload, location and offering should always be considered ahead of the multiplier when evaluating a Management Rights business.}

Letting Business

Letting Pool: 28
_{Number of units the manager is authorised to manage.}

Owner Occupiers: 83
_{Number of units resided in by their owners.}

Lock Ups: 0
_{Number of units owners are not renting out, but also do not live in.}

Outside Agents: 47
_{Number of units being rented by other agents (these could potentially be acquired by the manager).}

Units In Complex: 160
_{The total number of units within the complex.}

Caretaking

Remuneration: $ 262,172
_{This is the body corporate caretaker salary. It is included in the Net Income above.}

Agreement Term: 25 years
_{How long is the caretaking contract.}

Agreement Remaining: 23 years
_{How long remains on the caretaking contract before it must be renewed?}

Agreement Age: 0 years
_{How long has the management rights existed.}

Office Hours: N/A
_{Required Office Hours}

Complex Features:

Real Estate Component

Manager's Unit: 3 1

Included Real Estate: $ 1,100,000
_{The value of on-title property included with the business. Its price is included in the Total Purchase Price.}

Manager's Car Spaces: 2

Office On Title: 1
_{Is there a manager's office included on the title?}

Pets: Yes
_{Can the manager own a pet on site?}

Unit Features: