Available now is this portfolio of investment properties on Brisbane’s Northside displaying good returns and incomes
Available now is this portfolio of investment properties displaying good returns and incomes.
Hervey Bay is a Coastal town approx. 3 and a half hours north of Brisbane. The Bay divides the mainland from Fraser Island and is the Tourism region for Whale watching in the months of April to October each year.
Boating and Fishing is another very popular past-time of the Hervey Bay region.
Hervey Bay has long been one of Australia’s fastest growing regions and has a population of approx. 50,000.
Hervey Bay continues to be one of the stronger markets in regional Queensland for Rent Rolls and Real Estate Businesses. Its growth has leant itself to new development both residentially and commercially and is not affected by the mining industry.
With a larger percentage of newer properties within local portfolio’s the incomes are generally higher than other regional towns and properties easier to manage. Therefore they also generate good demand in most markets.
The Real Estate market is holding well in Hervey Bay and good Real Estate Rent Rolls for sale will achieve a fair market value.
Real Estate Agency Sales met several potential buyers who would purchase a good Rent Roll within the region. We did list one Agency’s rent roll and a buyer was found quickly after several strong enquiries.
Hervey Bay: The multiplier for Rent Rolls sold in Hervey Bay is normally mid 2, around 2.40 to 2.55 per $1.
Hervey BayReal Estate Businesses are of interest to potential buyers for their steady values and growth potential. However it remains a relatively small market which means there is always going to be some limits to the amount of potential buyers.
Agency value is once again determined by at least the 3 major factors, Agency profits, salespeople skills and success history and the Businesses reliance on the Principal for income.
At the moment there are no more Businesses for sale or Property Management rent rolls for sale.
For more details contact Kevin Hockey from Real Estate Agency Sales on 0447 555 683 or email email@example.com
Our first stop on our Real Estate Agency Sales regional tour was to Gympie, Rainbow Beach and Tin Can Bay.
The region is sometimes considered the very northern tip of the Sunshine Coast but is part of the Wide Bay – Burnett region of Queensland. Rainbow Beach and Inskip Point are the gateway to Fraser Island, the worlds largest sand island and a mecca 4wd driving experience.
Gympie is the major local town with a population of approx. 19,000 and is just 160km north of Brisbane.
Rainbow Beach has spectacular beaches and amazing coloured sand cliffs. You can 4wd on the beach from Noosa to Rainbow Beach, passing through the popular camping area of Double Island Point.
Tin Can Bay is a small coastal town beside the Snapper River and is a well known location for Dolphin Feeding. Bottlenose dolphins come in to the river each day and National Parks runs a well planned dolphin feeding programme to allow visitors the ability to get up close to these beautiful wild animals.
The area is known as the Cooloola Coast.
This market is generally unaffected by outside influences of other regions such as tourism and the mining sector. Values of Rent Rolls for sale are generally only affected by normal market conditions.
New housing has introduced better rental property and portfolio’s can be influenced by their make up of newer or older properties.
Photo: Kylie Best from Welcome Home Rentals was one of the agents we met with in the region.
Low property values and rents affect the Property Management income levels and therefore overall potential market value.
The Beachside locations of Rainbow Beach and Tin Can Bay rely heavily on holiday rentals and their rental departments.
Rainbow Beach and Tin Can Bay: Under $2, currently $1.50 to $1.80 per $1.
In this region Businesses normally carry base value depending upon available staff, their experience and history of achieving sales results. The Business will need to show long term ability to generate profit and the Business’s reliance on the Principal to generate income and profit will also have a significant bearing on the sale.
At the moment there are no Businesses for sale or Property Management rent rolls for sale.
Real Estate Agency Sales met at least 2 offices in the region who would consider buying a rent roll.
For more details contact Kevin Hockey from Real Estate Agency Sales on 0447 555 683 or email firstname.lastname@example.org
Our first stop around Queensland to visit regional offices saw us meet with Principals in Gympie, Rainbow Beach and Tin Can Bay.
Read our Market Report here.
In November 2014 new Real Estate legislation in Queensland began when the Property Occupations Act 2014 replaced the Property Agents and Motor Dealers Act. In doing so the appointment form changed to the Form 6 and with it a significant change when it comes to selling and buying a rent roll.
The ability to assign a management from a Seller to a Buyer existed under the PAMD Act however the Form 20a required the Owner of the property (Landlord) to approve the assignment by way of initialing the proposed condition within the appointment form. There was further requirement for the property owner to be notified of the assignment of the management prior to the settlement of the rent roll.
In November 2014 the PAMD Act changed to the Property Occupations Act 2014 and with it the new appointment form, the Form 6.
All Form 6 appointments, under the new legislation, are automatically assignable. There is no provision in the Form 6 for the property owner to agree or not agree to the assignment of their management.
There is still however a requirement for the Seller of a rent roll to notify all Landlords of the sale of the rent roll.
Under Section 113 of the Property Occupations Act it states“The assignee must give each client written notice of theassignment within 14 days after the assignment”.
It goes on to say that the notice of assignment must include the following details:-
(a) the assignee’s name and contact details;
(b) the address of the assignee’s registered office;
(c) the appointment has been assigned without changing theterms of the appointment;
(d) the appointment may be revoked by the client by giving
at least 30 days written notice of the revocation to the
assignee, unless the client and the assignee agree, in
writing, to an earlier day for the appointment to end.
Real Estate Agency Sales recommends written notification of the rent roll sales be provided to all property owners prior to 14 days before settlement. A copy of such notification should then be attached to the Form 6 appointment to be handed to the Buyer of the rent roll for proof of notification.
Can the PAMD appointment form be assigned if it has been agreed to?
Yes, and No.
Under the Property Occupations Act 2014 the PAMD Form is assignable however you will find that all finance institutions want new documentation applicable to the new legislation as part of their willingness to fund the purchase. Therefore whilst it is valid to transfer an assignable PAMD form, the banks will require new Form 6 appointment forms and are not accepting old PAMD forms.
The new Property Occupations Act 2014 brings changes that can affect the way assignments are handled.
The First change is that the new appointment Form 6 does not have any provisions in regard to the assignment.
All appointments are now assignable.
Looking at the new legislation there has been a dramatic change to how we handle assignments. Section 113 (2) of the Property Occupations Act 2014 states “The assignee must give each client written notice of the assignment within 14 days after the assignment”.
This potentially allows, in the case of a rent roll sale, for appointments to be transferred to a buyer without a Landlords knowledge, agreement or acceptance. The buyer would then be responsible for notifying the Landlords of the sale and transfer of the appointment.
It would be Best Practice of Real Estate Agency Sales that to follow this course of action would be extremely detrimental to all parties and that the Seller should always notify the Landlord prior to settlement and provide to the Buyer proof of notification of the sale or transfer of appointments.
The Landlord should always be notified prior to settlement of the transfer of their appointment and for the Seller to discuss with the property owner any questions or concerns they may have as well as the benefits for the Landlord in transferring to the new Agency.
To discuss further, please contact Kevin Hockey at Real Estate Agency Sales on 0413 879 986 or email email@example.com
In the sale of a Real Estate Agency there is no doubt that the sale is a “going concern” whereby no GST is applicable to the sale.
In the case of the sale of a Rent Roll only there remains conjecture in regards to whether it is a “going concern” or not and therefore whether GST is applicable in the sale.
Having spoken to the Australian Tax Office (ATO) previously they were clear that for a sale to be defined as a going concern there are 3 factors which would define its suitability.
For it to be a going concern the buyer would be required to take the premises, the staff that operate the rent roll and the equipment used to function the business.
Or does it…….
A number of accountants argue that the definition uses the words “if necessary” and if the buyer already has premises, staff and equipment then it is not necessary.
The problem is should the ATO choose to take action at any time the risk is always with the Seller. A contract can include special conditions whereby should a Court judgement in the future rule that the GST was applicable and must be paid, the Buyer by this time may no longer be in operation, may have moved overseas, gone into receivership or faced some form of tragic circumstances since the purchase and is now not contactable or able to be held accountable to the contract. Therefore the Seller would face the cost of the payment of gst.
Another issue may also be, should the ATO decide a fine is to be imposed for not paying the GST at the time, who pays the fine?
It is our position at REAS that a sale of a Rent Roll is not a going concern and that GST is applicable to the sale. The Buyer will then claim the GST back in their next BAS and be refunded (assuming they are registered for GST).
Should however, the Accountants for both the Seller and Buyer agree that the sale is a going concern and GST is not applicable we are happy for the contract to reflect the advise provided to their clients. However, both parties must agree.
For more information regarding gst please click here – http://www.reas.com.au/is-gst-applicable-in-the-sale-of-a-rent-roll
Then you need to talk to us at Real Estate Agency Sales!!
We are the experts in the Rent Roll sale process. It’s all we do.
Our services include:
• Contract advice
• Solicitor referral
• Finance referral
• Due Diligence
• Rent Roll sale management
• Rent roll purchase management
• Organic Rent Roll growth
Plus of course we will find the right buyer for your business and rent roll or register with us today if you are looking to purchase.
Contact us now on 3266 4242 or email firstname.lastname@example.org
There is a lot to consider when selling a rent roll. It’s unlike any other type of business sale and has repercussions for both parties given common contract conditions for most sales.
Selling a Rent Roll is often not about finding any buyer but about finding the RIGHT buyer.
Real Estate Agency Sales will take the time to consider a range of factors that may affect the successful transfer of managements to a buyer and dealing with any retention conditions within the contract.
The right Demographics, the Location of both offices, the Size of the businesses, the Experience of the buyer and the Company Brands are all taken into consideration to ensure a smooth and successful transfer for both parties which provides value for money for Seller and Buyer.
If you are Selling or Buying contact Real Estate Agency Sales on 3266 4242 or email Kevin Hockey at email@example.com
Today I’ve had another private seller contact me wanting help with their contract. Generally I don’t mind assisting except when it comes to asking for access to my systems, that’s a part of the real value we provide.
However the question, “isn’t that part of a normal contract” or “what is normal in this situation” left me pondering about those questions.
When selling a rent roll there is no normal.
A contract is unique to every sale. It defines in writing what the Buyer and Seller agree to verbally with the assistance of their Solicitor, Accountant, possibly Bank Manager and of course the right Broker such as Real Estate Agency Sales. In each sale, the terms may be different. These terms may not just be defined by the Price, Deposit, Settlement dates, Due Diligence or Restriction conditions, they may also include numerous other matters and the exact wording of these Conditions in the contract may effect how they can be implemented.
Therefore by not being a party to the contract it is difficult to provide advice in many matters of a private sale.
Recently I had a call from a Seller who chose to sell privately, thinking he would be better off by saving on the commission of using our services. He rang to let me know he’d made a big mistake and wished he had used us. He lost managements in the transfer and the contract had left him open to misinterpretation and misrepresentation.
Some Principals feel they can sell themselves because they will have a Solicitor representing their interests however I learnt the hard way when I sold my office that not all Solicitors know or are experienced with the sale of a Rent Roll and the unique matters that occur in such a transaction.
A Rent Roll sale is unlike other business sales.
Solicitors specialise in varying areas of Law. If you are selling a Rent Roll you should ensure you use a qualified specialist Commercial and Business Lawyer who understands and has vast experience in dealing in Rent Roll sales. We would recommend talking with Jeremy Streten from Streten Masons Lawyers.
Our contract template has been carefully drafted over many years to reflect all the pertinent matters of a Rent Roll sale. Our systems, including relevant letters and materials to assist Sellers and Buyers, have also been designed over many years and are only available to Clients who choose to engage our services.
If you have sold privately please feel free to contact me if you need help but just understand by not being privy to what has been agreed to between the parties, what has been written into the contract and how it is worded it is difficult to provide solutions.
Contact Kevin Hockey at Real Estate Agency Sales any time on 3266 4242 or email firstname.lastname@example.org