Model 1 based on renting units in local market catchment (63 units)
Nett Revenue - $1,244,880 (100%)
Ø 1 & 2 bedroom units $330 pw x 52 weeks $17160 (lower average rent per used unit)
Ø Body Corporate $50 x 52 weeks $2600 Operating Costs
Ø Admin Fund (Body Corporate expenditure) $130,000
Ø Rates (building) $89,000
Total Operating Costs $219,804 (17.66 %)
Profit After Controllables $1,025,076 (82.34 %)
ROI / Yield : 5.69 % (purchase price $18.4 M)
Growth : anticipated double digit
Note:
Ø Water & Elec paid by tenant as used all on separate meters
Ø Revenue year on year increase between 5 - 10 % (approx – in line with inflation)
Ø Age Pension increased six monthly (details can be supplied)
Model 1 based on renting units in local market catchment (63 units) and Mgt Rights factored in over two years - Nett Revenue $1,794,880 (100 %)
Ø 1 & 2 bedroom units $330 pw x 52 weeks $17160 (lower average rent per unit used)
Ø Body Corporate $50 x 52 weeks $2600
Ø Mgt Rights $550,000
Operating Costs
Ø Admin Fund (Body Corporate expenditure) $130,000
Ø Rates (building) $89,000
Ø Letting Fee (Mgt Rights) $110,804
Total Operating Costs $329,804 (18.37 %)
Profit After Controllables $1,465,076 (81.63 %)
ROI / Yield : 8.14 % (purchase price $18.4 M)
Growth : anticipated double digit
Note:
Ø Water & Elec paid by tenant as used all on separate meters
Ø Revenue year on year increase between 5 - 10 % (approx in line with inflation)
Ø Age Pension increased six monthly (details can be supplied)
Ø Mgt Rights purchased add additional revenue $1.1 M and profit with costs of $110,804 increase
ROI 8.14 % PA
Model 2 based on established and acceptable % basis of 85 % of Age Pension entitlement from the Government which includes full catering service (63 units) 2 people per unit - Nett Revenue $1,477,394 (100%)
Ø 85 % of Couples allowance (20.09.08) $469.50 (x2) per fortnight @ 85 % $798.15 per fortnight
Ø Rent assistance $103.80 (x2) per fortnight @ 100 %
Ø Total Sum $901.95 x 26 x 63 (units)
Operating Costs
Ø Admin Fund (Body Corporate expenditure) $130,000
Ø Catering costs (including labour) $354,816
Ø Rates (building) $89,000
Total Operating Costs $573,816 (38.84 %)
Profit After Controllables $903,578 (61.16 %)
ROI / Yield : 5 % (purchase price $18.4 M)
Growth : anticipated double digit
Note:
Ø Water & Elec paid by tenant as used all on separate meters
Ø Full catering which provides three meals per day
Ø Age Pension increased six monthly (details can be supplied)
Ø Revenue year on year increase between 5 - 10 % (approx in line with inflation )
Model 2 based on established and acceptable % basis of 85 % of Age Pension entitlement from the Government which includes full catering service (63 units) 2 people per unit and Mgt Rights factored in over two years - Nett Revenue $2,027,394 (100 %)
Ø 85 % of Couples allowance (20.09.08) $469.50 (x2) per fortnight @ 85 % $798.15 per fortnight
Ø Rent assistance $103.80 (x2) per fortnight @ 100 %
Ø Total Sum $901.95 x 26 x 63 (units)
Operating Costs
Ø Admin Fund (Body Corporate expenditure) $130,000
Ø Letting Fee Mgt Rights (7.5%) $110,804
Ø Catering costs (including labour) $354,816
Ø Rates (building) $89,000
Total Operating Costs $684,620 (33.77 %)
Profit After Controllables $1,342,774 (66.23 %)
ROI / Yield : 7.45 % (purchase price $18.4 M)
Growth : anticipated double digit
Note:
Ø Mgt Rights purchased add additional revenue $1.1 M and profit with costs of $110,804 increase
ROI 7.45 % PA
Ø Water & Elec paid by tenant as used all on separate meters
Ø Full catering which provides three meals per day
Ø Age Pension increased six monthly (details can be supplied)
Ø Revenue year on year increase between 5 - 10 % (approx in line with inflation )