A Sound Business… People Still Need to Rent
It’s almost 18 years since I became a management rights sales broker.
In 1995 the market was pretty quiet. It was not until around 2000 that the baby boomers cashed up and moved from NZ and the southern states of Australia to purchase management rights. They were completely new and worked hard to reap the rewards of their new business venture. In turn the market gained huge momentum and everyone wanted a management rights!
Tourism was booming and the population of the Gold Coast more than doubled in 20 years to over 500,000, hence the rental market was enormous.
Today, as we move towards 2012, the rental market is still busy – people still need shelter. Renters have a choice of permanent townhouse style or apartments near the beach. We now have purchasers from South Africa, the UK and Asian countries.
I’m currently marketing a permanent/corporate/holiday management rights in Hervey Bay with a return of 30% plus on the business investment! No wonder I’ve received many enquiries.
Overseas students are still moving to Australia to study; Bond and Griffith Universities (on the Gold Coast) enrol thousands annually. As I speak to managers in Brisbane they, too, are very busy with permanent and corporate rentals.
The exceptional thing about management rights is that the manager gets paid each month! The income streams are fairly consistent. If ex bank managers, accountants and lawyers purchase them I think that says it all as they research very carefully.
Hopefully the Gold Coast will win the Commonwealth Games and that will increase the demand for rentals with new construction plus the exposure from the visitors to the games.
Recently the Aussie dollar has declined, it’s school holiday time and our apartments are still catering to tourists from all over the world. This month we host the V8 super car races and our exposure on television will be phenomenal! Surf club championships are back soon, not to mention the Gold Coast Convention Centre that hosts thousands of interstate and international visitors each year.
All in all, our industry provides us with our home and a cash flow business. Banks are still very happy to lend, management rights are still being constructed and people need shelter!
Liz Lavender, Liz Lavender Management Rights
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