November 12 Resort Brokers Informer by iformat

INFORMER

No. 69 | November 2012

Australia’s No.1 tourism & business

Green Shoots Promising signs of growth ahead

Also in this edition we speak with Tourism Australia’s M.D. Andrew McEvoy about Australia’s tourism market

resortbrokers.com.au

major downturns, we are still succeeding at what we do best, and are now gearing up for the next phase of growth. This edition is all about the growth ahead. Spending on leisure and accommodation is naturally linked to the economic cycle. A downturn means lower spending on holidays and less demand from the business sector. But we’ve now clearly turned the corner. Our cover story explores the positive indicators pointing onward and upward. Our domestic sector has just recorded its best year for visitor expenditure in over a decade. And international tourism and investment are building strongly. I met with an immigration solicitor with a staff of 100 in his Hong Kong and Guangzhou offices. He says investors are eager to put money into Australia because of our political and financial stability and strength. The new significant investor visa, from November 24, will smooth the way for migrant investors with $5 million or more to spend here. Resort Brokers is already dealing with one who told me “once I buy, I’ll be able to introduce you to 20 other buyers from my little village of 10 million people!”

Onwards & Upwards

It’s great to end the year on such a positive note. In 2013 we’ll bring you a new series about iconic hotel chains. There’ll also be a greater focus on the caravan park sector. Our team now includes people with extensive caravan park know-how.

This renewed energy runs through our industry at every level, from individual property owners to the top of development, investment, management and marketing groups.

Before closing, let me welcome to our team Tyler Millar, the son of one of our longest serving and most successful consultants, Glenn Millar who is joining him on the Sunshine Coast. In 2013, our network will further expand in Qld, NSW and beyond.

an you feel it? There’s a real buzz in our industry now, a sense of optimism I haven’t felt for some time. I reckon this summer holiday season will be a cracker, kicking off a period of real growth.

Ian Crooks

MANAGING DIRECTOR

COVER STORY: Australia’s tourism industry generated more than $95 billion in spending in the year ending June 2012. That’s 2.5% of GDP. It employs close to 1 million people. But tourism leaders say the industry is now poised to deliver much more. The seeds of growth have been sown and forecasts are for plentiful seasons ahead.

Also this month we catch up with Tourism Australia’s dynamic managing director, Andrew McEvoy to discuss the opportunities he sees ahead. And don’t miss the final of our popular series on management rights.

We recently attended HICAP, the Asia region’s largest hotel investment forum. It drew nearly 800 international delegates to Hong Kong, the second highest attendance in its 23 year history. Keynote speaker was Ivanka Trump, Executive Vice President of Development and Acquisitions for The Trump Organisation. Impressive title and, I must say, a very impressive woman. She and her brothers founded the seriously upmarket Trump Hotel Collection in 2007. They apparently didn’t compromise one iota on luxury or price during the GFC, and didn’t suffer any downturn. I know the Trumps operate in a different stratosphere to the rest of us, but the lesson is still relevant. Stick to your knitting, stick to what you do best and keep doing it better. It’s a philosophy I’ve always applied at Resort Brokers. Having weathered three

We wish all our readers a happy and safe Christmas, a sizzling summer season and a vigorous growth year ahead. Please send your feedback to: carlacook@resortbrokers.com.au or PO Box 5004, West End Q4101

INSIDE MANAGEMENT RIGHTS SERIES (cont.) 10 AGENT & AREA PROFILE

FEATURE: GREEN SHOOTS

MANY FACES OF ACCOM INDUSTRY

INDUSTRY SPECIALISTS

EXCLUSIVE LISTINGS

TRADE PAGE

RELIEF MANAGERS

RESORT BROKERS DIRECTORY

RESORTBROKERS.COM.AU 3

hat a fantastic property for a couple to run! Go west for two to three years, make really good money then return to where ever you like with cash in your pocket. Its that simple. You won’t get these returns on the coast - leasehold 60%, freehold going concern 31% and the investment freehold 11%. This cabin motel consists of 8 cabins ranging from just 1 year old up to 4 years old. There are also 2 renovated older buildings in the complex; a 2 bedroom fully self contained apartment and a 3 bedroom fully self contained apartment. The manager’s residence is a spacious 3 bedroom freestanding house with a dual kitchen and attached reception. The turnover has gone up consistently with the addition of extra cabins over the last four years. This is a great little business for a mum and dad operator. The lease is at entry level asking price of $290,000, the freehold going concern at $790,000 and the investment Freehold at $500,000. It doesn’t get better than this!

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Coastal for show, in land for dough! MASSIVE RETURNS ON QLD WESTERN COAST • Spend three years in the west and make some real money • 3 bedroom residence, bathroom, dining and lounge • Cabins are from 1 to 4 years old • Turnover has increased each year with the addition of the extra cabins • The most modern accommodation in the town of Augathella • No restaurant. Breakfasts and some evening meals on charge back from the hotel next door • You don’t have to kill yourself in this operation its easily handled by a couple • Schools and shops close handy

Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

Nett profit: $231,000 Turnover: $316,000 FREEHOLD PRICE: $790,000 LEASEHOLD PRICE: $290.000 FREEHOLD INVESTMENT: $500,000 REF: FH002125 / INV002129 / FH002128

Are you buying or selling Caravan Parks, Motels, Management Rights or Hotels?? David Burrough and his team are the most respected legal advisors for those about to buy or sell an accommodation business. Why not give them a call today?

T: (07) 3220 1144 E: email@hillhouse.com.au

www.hillhouse.com.au Many thanks to Queensland Tourism for providing the image of Brisbane

aters Edge is a stunning waterfront Motel complex situated on the Strand in Townsville. The Strand is Townsville’s premier beachfront address and this complex boasts 49 ocean view apartments.

This property is unique. It is a strata titled management rights complex. It has approval by the Council to run as a motel only. This means that there can be no long term residents or owner/occupiers on site. The motel is a 4 storey building with lifts and offers secure parking for guests There are 47 of these units in the rental pool. The rooms are furnished alike and offer guests a very comfortable tropical accommodation choice. This is a 4 star property that offers guests a beautiful and private swimming pool with spa and large deck, and BBQ facilities. There is wireless internet throughout the complex. The building was completely renovated and strata titled in 2004, and with constant maintenance it presents very well. 6 RESORTBROKERS.COM.AU

Outstanding waterfront complex in Townsville MOTEL STYLE MANAGEMENT RIGHTS The owner’s accommodation is a large 1 bedroom apartment. The office is attached and on exclusive use. • Absolute beachfront complex • 47 high quality apartments in rental pool • No long term permitted in the building • No outside agents permitted, owners must use on site management = very secure business • Private swimming pool and spa on beautiful sun deck • Guest BBQ and entertaining area • Office attached to residence with exclusive use • Walk to restaurants, cafes, and beach • Best location in Townsville

Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au

Nett profit: $502,000 PRICE: $2,650,000

Don’t miss this opportunity! REF: MR002104

Best value in Australia’s unspoilt NSW south coast VENDOR FINANCE AT 6.5% INTEREST Russell Rogers Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au

Nett profit: $381,726 Turnover: $785,054 PRICE: $2,500,000 REF: FH001677

resort Brokers Australia is proud to offer the Kianinny Resort to the market. The resort and function centre comprises of 25 separate cottages (2 bedroom), 9 motel suites, 2 group lodges, 2 function areas, 2 commercial kitchens and a large manager’s residence (3 bedroom). The property boasts a wide variety of amenities including tennis & basketball courts, heated pool, mini golf course (par 58), games room, playground, ropes course, canoes, climbing walls and bocce ball court. This property is perfect for a buyer that loves nature and the great outdoors.

After owning the resort for 10 years, the vendor is ready to retire and is willing to offer generous vendor finance terms to the prospective purchaser. This property offers outstanding scope for further growth and development. • L ocated in one of NSW’s most beautiful, unspoilt coastal towns • 100 acre block allows for expansion STCA •M assive price reduction $750,000 owner has to move on • Very generous vendor finance terms •B uy of the century! Worth $6.6 million; on sale for $2.5 million • High turnover, large profit Hurry this opportunity wont last long!

It has patronage from a diverse mix of sectors, including the tourist market, as well as education and sporting groups, conferences and the wedding market. RESORTBROKERS.COM.AU

elegantly appointed and refurbished, this hotel boasts 92 spacious guest rooms including 40 suites together with an award winning restaurant, conference facilities and a range of features synonymous with a 4 star resort hotel.

The ‘Raffles’ of the north 82% OCCUPANCY - GREAT RETURNS!

It is located on a large prominent site in the heart of the Cairns accommodation precinct and enjoys three street frontages. It is just one block from the Esplanade and 500 metres from the main restaurant and retail district, ensuring it is well patronised by a wide range of hotel guests and travellers.

This hotel in our opinion is one of Australia’s best buys. With the recent announcement of triweekly flights from both China Southern and China Eastern we believe Cairns will return to its preeminent position of the 1980’s making it one of Australia’s key tourism destinations.

The hotel incorporates traditional Queensland architecture with sweeping verandah’s and tropical surrounds. The award winning Plantation Bar & Grill boasts excellent in-house and local patronage, while a mix of conference and function rooms comfortably cater from small meetings to large conferences.

• 4 star rated • Attractive appearance with lush tropical gardens • 92 spacious guest suites consisting of 51 Plantation Rooms, 1 Plantation Spa Rooms, 36 Tower Suites and 4 Penthouse Suites • Centrally located

After eight successful years the current owner has decided to retire!

Don’t miss this opportunity!

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Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Nett profit: $1,491,000 Turnover: $3,593,676 PRICE: $10,500,000 REF: FH002027

Fantastic Opportunity Backpackers in S.E. Qld FREEHOLD OFFERING - 22%ROI Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

PRICE: POA 22% ROI

REF: LH FH002182

his is a great opportunity to live and work in a ripper area of Queensland, only 2.5 hours to Brisbane. The property boasts a huge return on the freehold investment of 22%. This property is fully refurbished and has high occupancy with tonnes of room to grow. The current vendors have the operation down pat and it runs like a welloiled machine. They will offer full training to the incoming purchaser, so there is nothing to worry about. The business can be run by a couple. There is no catering as the guests cater for themselves. The backpackers fruit pick from early in the morning and work for the whole day, so the day-to-day operation can be done uninterrupted, easily completed by the time the guests arrive back at the hostel.

The hostel plays an integral part in the community. It supplies backpackers accommodation who in turn supply local farmers with the workforce required to harvest the fruit and veggies of this burgeoning area of South East Qld. The hostel transports the mostly international guests to the farms in small commuter buses and then picks them up when the day is done. This service keeps the hostel at 100% occupancy in the top season and 75% in the pruning and thinning season. • 17 rooms - 57 beds soon to be 61 beds • 3 bedroom owners residence • Fully renovated on 5 acres • Can be run by a couple with ease • No catering - guests look after themselves • Full training supplied on settlement and personal introduction to the farmers who employ the work force from the hostel • Live and work from home • 22% ROI • Be quick the high season starts end of January 2013. Money, money, money! RESORTBROKERS.COM.AU

Earlier this year, a review by industry analysts Atchison Consultants forecast the serviced apartment sector, in terms of returns, would outperform the hotel sector over the next three years. “It is a trend we have been predicting for many years,” said Resort Brokers managing director Ian Crooks. “We warned back in 2005 that management rights, a model directly accountable to unit owners, had revolutionised the way resort properties operated and that traditional hoteliers would need to adapt.

Editorial

“At the time, Outrigger Hotels & Resorts had successfully broken into the Australian accommodation market by buying management rights to established buildings in Surfers Paradise.

Apartments sector set for future growth CATIE LANGDON PART 5 IN OUR SERIES IN OUR THE GROWTH OF MANAGEMENT RIGHTS With some 40 years of solid growth behind it, the serviced apartment sector has emerged as a major component of Australia’s accommodation industry. It now represents over a quarter of total room supply. That’s good news for many segments of our community – for travellers, for the vast numbers employed in the sector, for unit buyers investing in properties, and for the management rights businesses that support them. Queensland alone has an estimated 3000-plus management rights schemes in operation.

The serviced apartment sector has reportedly accounted for almost 70% of all new room supply over the past decade. And, as we touched on in our last edition, Australian Bureau of Statistics (ABS) figures show that decade (2001 – 2011) also saw the number of room nights sold in serviced apartments grow by 72%. Based on earnings, serviced apartments now command 26% of the accommodation market, level with motels (26%) and fast closing in on hotels (46%). According to IBISWorld, the estimated value of the sector in Australia is now $8 billion and growing.

Taking a different vue

“Now we are seeing a new wave of change. The purchase earlier this year by Accor of the Mirvac Group’s hotel interests in Australia and New Zealand is a prime example of the dramatic reshaping of the industry in our region.” A telling sign of the times was noted in July at the 2012 ANZPHIC (Australian, New Zealand and Pacific Hotel Industry Conference). Melbourne-based Quest Serviced Apartments, founded in 1988 by Paul Constantinou with one property in Fitzroy, was presented with the ‘Innovators Award’. The award was the first of its kind, specifically recognising the success of the Quest business model in the accommodation industry. “The model caters for the extended stay business traveller with flexible, spacious and comfortable serviced apartment accommodation, delivers sustainable rent to developers and landlords, meets the requirements of financiers and provides profitable businesses for franchisees,” the Accommodation Association of Australia reported. The sector is benefiting significantly from increasing numbers of business travellers

ALEX COOK - RESORT BROKERS AUSTRALIA Residents of Geelong will most likely have noticed a rather trendy addition to the architectural wealth of this picturesque port city. Located on Bellerine Street with stunning views over Eastern Beach, Geelong’s CBD and Austin Park, Vue Apartments is a welcome addition to the area’s short-term accommodation supply. Having been involved with the project since selling the management rights prior to construction, Resort Brokers agent Jim Chapman was instantly captivated by the building. So much so, that he suggested we 10 RESORTBROKERS.COM.AU

The management rights to Vue Apartments have been acquired by Saltwater Properties who are based in Victoria. Saltwater is a boutique operator who have a collection of accommodation and tourism based businesses across Australia.

Properties will acquire a business structured to perform; the building itself presents an exceptional standard of finish and design; environmental impact been given a front seat with an ethical and sustainable construction; the building engages the local community on a physical and social level.

Vue Apartments are one of that rare breed of residential developments that impresses on all levels and leaves brokers like us wondering where the next one is coming from. Guests will be blown away by the quality and style of their habitat; Saltwater

One of the most interesting aspects of this 60 keyed apartment development is the ingenious way in which developers IDS (Integrated Development Solutions) sought to engage the local community with the project. In keeping with Geelong’s community arts

write an article on it.

to Australia and corporate travel within Australia. Eight new Quest Serviced Apartment properties are opening in the 2012-13 financial year. Surfers Paradise-based Mantra, which also has a significant share of the serviced apartments sector, is chasing the lucrative business travel market too with its plan to open a number of new Peppers-branded CBD properties in capital cities. But the strength of the management rights industry is also intrinsically linked to leisure travel, as well as to the evergrowing trend toward apartment living as a permanent residential choice. Strata apartments represent the most popular form of tourist accommodation in Australia’s major tourist destinations. And they are increasingly the popular choice for downsizing baby-boomers seeking

low-maintenance, leisure-focused lifestyle in prime locations with lock-and-leave security and convenience. In both these market segments – tourism and permanent letting – we see a solid outlook for management rights. Tourismdriven management rights buyers are looking for prime location and room to grow the business and add value. Permanent residential complex buyers see merit in the lifestyle and security these businesses afford. Resort Brokers’ optimism for the sector is evident in its growing team of dedicated sales consultants. Four sales people are now very active in the Brisbane area and two new consultants have recently been added on the Gold Coast. “Our sales on the Gold Coast doubled this year and the outlook is very positive,” Mr

Crooks said. “We hail the growth in the serviced apartments sector led by the likes of Quest. Raising awareness about and demand for the advantages of choosing apartment-style accommodation will provide flow-on benefits at every level of the industry. “But we must also stress management rights is still very much a mums and dads business,” Mr Crooks said. “Individuals, partnerships and family operations provide the most direct and personal service to unit owners. They have built this industry and they remain at its core.” To catch up on previous articles in this series, go to http://resortbrokers.com.au/ informer-archive.htm

Editorial undertaken by IDS, along with forecasters MacroPlan Australia, indicates that there is a significant demand for short-term accommodation in Geelong, within both the corporate and tourism sectors. It is estimated that there is a need for a further 3 – 4 large hotel/serviced apartment complexes. From a local employment perspective, the development has employed around 40 people on a day-to-day basis during the construction process, with around 36 employees anticipated to be required to operate Vue Apartments on an on-going basis. The demand from investors has clearly also been strong, with all apartments selling quickly off-the-plan prior to the commencement of construction.

initiative, Vue has incorporated a 9-metre high art display at one corner of the building, along with a subsidiary display. An arts competition was held which received 55 entries; the 1st and 2nd place winners will have their artwork displayed on an exterior panel of the building. The display will be interchanged bi-annually, providing a canvas for local artists to showcase their work. When we asked IDS Director Phil Petch about this he told us, ‘Its about putting something back into the community. It takes time, money and a lot of work, but it is worth it. It will really help give the property a point of difference and an iconic feel.’ The development’s streetscape has been further complemented by work from local Geelong sculptor Leonie Amerena. That is not to say that IDS have relied on quirky social mediums to ensure that the project fits in with the local community. On the contrary, the developers have been determined to let the building speak for itself by creating a contemporary and sustainable development on what is considered to be

one of the last prime development sites in Geelong. ‘With its strong design appeal, choice of materials and artistic emphasis, we hope the building will really engage with the people of Geelong’, said Mr. Petch. IDS’s drive to make the complex as sustainable as possible appears to stem from a sense of practicality, as much as a sense of environmental responsibility. They have gone to great lengths to make the building as energy friendly as possible, integrating features such as energy efficient appliances and utilities, LED lighting and double-glazing throughout. When asked why energy efficiency was so important him Mr. Petch suggested ‘It is the correct thing to do environmentally, plus electricity prices are going through the roof. Making energy saving choices will help our apartment owner’s bottom line and ensure their investment shows better returns’. From a commercial and economic point of view, the timing of Vue’s opening appears to very opportune. Extensive research

Of particular interest to readers of this magazine will be the structure under which the management rights to Vue Apartments were established. As you may or may not be aware, management rights businesses are relatively few in number in Victoria. Victorian management rights are regulated by the Owners Corporation Act and in comparison to Queensland management rights have less regulation in regards to length of agreements, license requirements and operational practices. In the case of Vue, while apartment owners have a right to use their apartment at any time, they still must pay the managers fee and cleaning costs for these periods. This means the owners still makes good profit in the busy times such as Xmas and New Year and provides greater security and stability to a manager’s income. No doubt most managers in Queensland would like to adopt this practice. Vue Geelong will be celebrating a ‘softopening’ in early December, with operations moving into full swing shortly thereafter. Next time your in Geelong, why don’t you check it out? Even if it’s a day trip, you can also pop in for a quick treatment at the Vue Day Spa. RESORTBROKERS.COM.AU 11

on’t miss this opportunity to take advantage of an ever growing business in one of Rocky’s most established motels. With a very inviting appearance from the main road heading north through to Mackay and Cairns the motel beckons weary travellers as well as corporate guests (driven by strong mining presence in the area). The villas at the back of the property have their own street entrance and are dual key. 4 are self-contained with laundry, lounge and main bedroom, each with a courtyard and lockup garage. The adjacent unit can be a second bedroom or separate motel unit as required. The property is close to the CBD, hospitals, airport, Fitzroy River and a large shopping centre. It must be remembered that Rockhampton is located on the Tropic of Capricorn and is considered to be the beef capital of Australia as well as the Capital of Central Queensland. It therefore attracting many visitors for various business and health reasons.

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Large leasehold in popular Rockhampton MOTEL & VILLA COMPLEX • 44 units in total including self- contained villas • 2 bedroom owners / managers accommodation • 3.5 star AAA rating • In ground pool with minimum grounds maintenance • 40 seat licensed restaurant and separate conference room • All linen hired and laundered commercially off the premises • Perfect position close to CBD and Fitzroy River • Presently run under management

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

Nett profit: $459,039 Turnover: $1,601,936 PRICE: $1,500,000 REF: LH002118

Editorial expected $300,000 on construction issues, the money will be diverted into rendering the brick façade and a complete repaint. I have no doubt the place look like new within long.

Turning things around PART 1 IN A NEW SERIES - ALEX COOK - RESORT BROKERS AUSTRALIA At Resort Brokers, nothing makes us happier than to hear about the successes of our clients. We aim to stay in regular contact with the vast array of people that purchase accommodation businesses through us, so we regularly come across stories that will inspire other operators around the country. Rather than keep them to ourselves, we thought it was time that we started sharing them. In the first article of what will hopefully become a regular addition to The Informer, we chat with Rino and Tamara Devita. They purchased Trickett Gardens, one of the first holiday complexes built in Surfers Paradise, through Resort Brokers in January this year. As you’ll hear, they have gone from strength to strength ever since. Although there is no need to give the full history of the property, it is fair to say that Rino and Tamara stepped in at a point when Trickett Gardens was in desperate need of some love and attention. The rooms were dated, with next to no work done on them in many years. Occupancy had dropped to an all-time low. Repeat clients who had stayed at the property for years had stopped coming. There were concerns over certain building and structural issues. Most importantly, the business was turning a much lower profit than one would expect. Nonetheless, Rino and Tamara could see the potential. For a start, the location is fantastic; located down a quiet street, yet within minutes of all the action and within seconds of the water, there are few better spots for families in Surfers. In spite of the superficial

appearance, they could see it could be brought up to scratch with some serious attention. Never ones to shy away from hard work, they took the plunge. Meeting up with them nearly a year after the first took over, things have completely changed. For a start, occupancy has soared. When I asked to have a look at room, I am quickly informed that they are fully booked. Apparently, if I come back on Tuesday, I might get a look at one. Before they purchased it was running below 40%...now they estimate the yearly average to be over 80%! Although there is no doubt that this is symptomatic of the resurgence that Surfers has experienced over the last year, a lot of credit must be given to the Rino and Tamara. Coming from a construction background, Rino has been able make substantial improvements to the complex. For the most part, this has come with room Renovations. Rino has offered preferential pricing to his owners to help them bring their units up to a standard that will see guests coming back for more. To date he has done 6 complete refurbishments, and aims to get through all 29 units in his letting pool over the next couple of years. He has fitted a new spa, raised the outside fence and overhauled the gardens. Interestingly, on Rino’s close inspection, the long-held concerns over certain building related issues seem to be unfounded. Rino explains that the building is incredibly structurally sound and that a few engineer reports had blown minor issues out of proportion. Now, rather than spending an

Tamara, who comes from a sales rep / educator background with Hair Care Australia, took on the task on pulling the house-keeping into line. I think many operators will find her outlook interesting and valuable. ‘Without cleanliness, you’ve got nothing’, she explains. ‘If you can’t provide your customers with a clean room when they are holiday, how can you expect them to come back to the resort and be happy’. Having tried a few cleaning companies, she feels the only way to ensure a tidy house is to source your own cleaner. She keeps 6 or 7 cleaners on rotation as she feels part-time workers have a greater enthusiasm for the job in hand. She also makes sure that her cleaners always ask themselves the question when they finish a clean, ‘would I be happy to stay in this room’. The results are clear to see…the place is spotless. Rino and Tamara have also made great strides on the marketing front. They have done major work to the web-site, adding new high-quality photos and a virtual tour. Relationships with booking companies have drastically improved. Package deals with Qantas have been re-established; Agoda, Late Rooms and Booking.com are bringing more international travellers, in particular from Singapore, Malaysia and New Caledonia. More important than anything, as Tamara rightly points out, is word of mouth. Repeat clients are coming back and people are spreading the word that Trickett Gardens is back. On the wall of the office are several letters of thanks from recent guests. It’s amazing what you can achieve in a year, with some hard work and some serious enthusiasm. The moral of the story? Every property out there has something good going for it. It just needs the right manager/s to find it’s true potential. When you’re out looking for your next property, don’t necessarily be drawn to the shiny, glitzy, perfect jewel. Have a serious think about what your talents are and what you might be able to achieve. Sometimes it’s better to buy something that needs some improvement. Only that way will you be challenged and ultimately end up feeling rewarded for your efforts. Importantly, this is also the way in which you are most likely to see capital gains from your investment. If you are a manager who has turned a property around, in whatever shape or fashion, we’d love to hear about it. This article may well be about you in our next edition! RESORTBROKERS.COM.AU 13

If you are looking for a management rights with a great return on investment then this complex ticks all the boxes! This very tidy and compact complex has a great body corporate salary and flexible workload. Located close to schools, shops and public transport makes this complex very popular with renters. The current managers are keen to start their next venture so will consider all offers.

Majestic returns at Royale Gardens TAKE A WALK ON THE SOUTH SIDE • Workload manageable by one person • Large well equipped office • 3% body corporate remuneration increase annually • Stable rental market • Close access to the Pacific Highway • Easy access to Brisbane or the Gold Coast

• 16.4% overall return on investment and growing • Close to schools, shops and public transport

MODERN, EASY TO RUN & SECURE

David Janett Mobile: 0404 204 672 Brisbane office: (07) 3878 3999 Email: davidjanett@resortbrokers.com.au Alex Cook Mobile: 0467 600 610 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au 14 RESORTBROKERS.COM.AU

David Janett Mobile: 0404 204 672 Brisbane office: (07) 3878 3999 Email: davidjanett@resortbrokers.com.au

Ref: MR002089

Brisbane permanent M.R. $505K nett Nett profit: $505,000 PRICE: $3,450,000

Nett profit: $180,000 Turnover: $193,600 PRICE: $1,100,000

A rare opportunity to purchase high-netting permanent MR’s in Brisbane. These 2 townhouse style complexes are located within 250 metres of each other; immaculately presented and modern, comprising a total of 178 units, a letting pool of 159 and a BC salary of $192,000. There is no requirement to live on site in one of the complexes, meaning one unit can be rented out for an additional $450 - $500 per week. The office can easily be locked off from the house, enabling an

office to be maintained in both complexes (neither complex have any set office hours). The level of income would be sufficient to run the businesses under management and create a secure passive investment. The caretaking work across the 2 complexes is relatively light and could easily be managed by 1 person. • Lengthy agreements – 20 years and 22 years • Area of high rental demand • Safe, secure income with room to grow

Perfect first time motel

The Aussie Settler Motel is perfect for first timers looking to enter the accommodation industry. It boasts 10 rooms, an in-ground swimming pool and a spacious 2 bedroom manager’s unit. It is part of a very large complex on a large parcel of land giving the prospective purchaser an opportunity to eventually develop the site with the other owner STCA. It is located right in the thick of the it. Patrons can walk to fast food outlets and the CBD of Queanbeyan.

FREEHOLD IN TIGHTLY HELD CANBERRA REGION • 10 upgraded motel rooms • 2 bedroom spacious residence • Located in tightly held city of Queanbeyan • Very well located amongst the action • Opportunity for further development STCA • Perfect operation for couple • All new split system air conditioners • In ground swimming pool

Nett profit: $166,000 Turnover: $264,970. PRICE: $1,150,000

Russell Rogers Mobile: 0416 166 909 Sydney office: (02) 9904 8224 Email: russellrogers@resortbrokers.com.au

REF: FH002097

Island living just 45min from Brisbane UPMARKET MANAGEMENT RIGHTS Nett profit: $326,430 PRICE: $2,152,150

Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 3999 Email: glennmillar@resortbrokers.com.au REF: MR002119

This stunning complex is located in a unique location with absolute beach front luxury. This resort is unique in many ways. Its has a large atrium under the main tower opening onto the resort’s gardens, ensuring all apartments can access ocean views. The design means level 1 apartments are actually at the height as level 3 in other buildings. Bribie Island is less than one hour’s drive from northern Brisbane, and guests have

a luxurious choice of accommodation from the 26 apartments in the available letting pool (out of a total of 37 apartments). The manager’s residence is a two level stand alone three bedroom, 2 bathroom apartment in a private setting. The office/ reception is a stand-alone facility with polished timber floors and expansive glass frontage with a back office attached. • 4.5 star AAA self-catering rating 2012 • Long accommodation module agreements • BC salary $54,105.30 (adjusted annually to CPI) • No fixed office hours in agreements RESORTBROKERS.COM.AU 15

Editorial

A bright outlook on the sunny coast GLENN MILLAR - RESORT BROKERS AUSTRALIA

occupancy. There appears to have been a renewed popularity of holidaying at home with the number of Australians taking a Queensland holiday increasing 6% to 7.6 million in the year to June 30. With the recent ‘I Spy’ campaign run by Tourism Queensland and the ongoing RACQ ‘Bring back the road trip’ campaign, we are starting to see a renewed push to holiday at home again. Good on you Australia...I personally think there a few better places on earth to take your holidays than in Queensland. Indications are strong that this trend will continue and take us closer to the goal of doubling overnight visitor expenditure to $30 billion by 2020. After an seemingly lengthy hiatus it also seems that buyers are returning to the management rights industry, albeit cautiously and selectively. Over the last 3 months we have seen numerous sales taking place right down the length coast. Permanent complexes have been a stand out in terms of demand, and mixed complexes with a good mix of permanent and holiday units are also in demand. The strong demand for quality permanent complexes on the Sunshine Coast must be tempered by the fact that the stock of these is somewhat limited. Buyers are still in the main a little wary of the holiday market; however as results continue to improve we are starting to see an increased demand for solid holiday complexes. Personally, I believe now is the time to buy into holiday management rights as I believe the market has bottomed out.

Thankyou to Queensland Tourism for use of the images above of the Sunshine Coast

The remit given to me for this article was to provide an overview of the market on The Sunshine Coast, in particular the state of the tourism industry and the management rights businesses that support it. I thought the best way to relay this information was to seek input from a number of resident managers and industry professionals who between them are far better qualified to comment than the press reports we often come across. Operators I have spoken with on the Coast have reported strong growth from their traditional drive markets as well as a boost in interstate and kiwi guests. The combination of a prolonged period of stunning weather, the overlap of interstate school holidays and a long weekend thrown in, has resulted in a period of strong performance. Many operators have also reported an increase 16 RESORTBROKERS.COM.AU

in advance bookings, through the holiday season and into early 2013. On the flip side, whilst occupancy rates have been rising, some operators have indicated that their yield has been affected due to discounting to keep “bums in beds”. However, after years of reports of lower than usual occupancy, supposedly caused by cheap overseas competition and the strength of the Aussie dollar, it is simply wonderful to see the Sunshine Coast as busy as it is. Driving around on my daily errands (and I drive around a lot) I can honestly say I have never seen so many ‘no vacancy’ signs. Many operators on the Coast are saying it is the best season for years. The latest national tourism figures have provided one explanation to this increased

Now more than ever, it’s critical for vendors to have all their ducks in a row before going to market. Otherwise it’s the same old story - they simply won’t attract the attention of serious buyers if they don’t. Buyers are becoming increasingly well-informed, wellresearched and often know the market better than intending sellers do. Those wishing to sell still need to be realistic to market conditions; the old cliché still rings true…. ‘a property is only worth what someone is willing to pay’. We are seeing small buildings starting to sell despite low nets and often poor presentation as the improving housing market is freeing up purchasers who need to sell their house to buy a management rights business. We have also seen a dramatic slowdown of receiverships in the industry with low default rates with lenders. This suggests the industry is underpinned by reasonable performance and in most cases not too over geared. Whilst multipliers in the higher end / higher income properties have held up well, the real estate component in many cases has not. With mortgage stress affecting the real estate market with numerous fire sales occurring over the last 12-18 months, combined with a generally flat real estate market, we have seen values come off from 2006/7 by an average of 20-30% in many cases.

Springfield Lakes 1st motel BRAND NEW 20 UNIT PROPERTY

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au Ian Dore EXCLUSIVE AGENT Mobile: 0412 752 238 Brisbane office: (07) 3878 3999 Email: iandore@resortbrokers.com.au

PRICE: circa $750,000/ $800,000

ocated in the heart of the major commercial area in Springfield Lakes and next door to a large shopping centre. Springfield Lakes is just 30km south west of Brisbane’s CBD. The area has been developed over the last 15 years and now boasts a population of 27,000 people. Imagine owning the only motel in this fast growing precinct! Springfield Lakes is home to the SQ Campus, which is about to double in size, as well as a new 12,000 sqm building serving as head office to the major worldwide brand, GE. Additionally rumour has it that there is a 296 bed Mater Hospital that is about to be announced. In fact, ground works have already started.

Springfield Lakes has fantastic infrastructure including 7 schools and direct railway line to the city (open in October 2013). This will reduce travelling time to Brisbane to just 25 mins. This property is ideal for an experienced operator looking to capitalise on the commercial trade and population boom set to bring assured business. • 20 magnificently designed units • A mix of studio and 1 bedroom units • Quality brand-new fit out • Fully air-conditioned throughout • Foxtel • In-ground pool • 60 seat ground floor restaurant that opens onto the pool • Cosy cocktail bar • 4 star • To be branded by Best Western Worldwide • Full accountant projected figures • New 30 year lease Call us today for an inspection, you won’t be disappointed! RESORTBROKERS.COM.AU 17

If you are looking for a large well-presented residence with Queensland character, impressive fixtures and loads of storage then this managers unit is for you. 5 Bedrooms, 2.5 bathrooms, double garage and a huge workshop / store room. Wow! This gated complex is immaculately presented and modern. It was built by the Heran Group in 2009 and is located in the South Brisbane growth area of Eagleby.

Largest manager’s residence EVER!! SOUTHSIDE MANAGEMENT RIGHTS • Large managers residence • Immaculately presented complex • $80K Body Corporate salary • Room to increase income • Easy workload • Great body corporate committee • Definitely lifestyle here!

The complex is flat and easy care. The gardens have been mulched and are selfmaintaining, requiring just the occasional spray.

LOW RENT & LONG LEASE

Stuart Charles EXCLUSIVE AGENT Mobile: 0458 588 472 Melbourne office: (03) 9347 3100 Email: stuartcharles@resortbrokers.com.au

Ref:MR002032 LH002163 Ref: 18 RESORTBROKERS.COM.AU

David Janett Mobile: 0404 204 672 Brisbane office: (07) 3878 3999 Email: davidjanett@resortbrokers.com.au

Ref: MR002090

The only motel in town Nett profit: $197,163 PRICE: $695,000

Nett profit: $173,000 Turnover: $186,400 PRICE: $1,350,000

What’s on offer is the leasehold interest to a very neat and tidy 15 room motel. It’s essentially a corporate or workers motel, and it’s the only one in town. With rent under 20% and no competition, this motel is highly profitable. Located in Rochester on the Campaspe River, this beautiful town is 180km north of Melbourne. Rochester is surrounded by large towns such as Echuca, Bendigo and Shepparton

• Long 32 year lease with below market rent • A very neat and tidy 15 room motel, with all ground floor units • Bed & Breakfast only - metres from gorgeous pub and cafes • High visibility site on major highway • Lovely pool (salt water) and garden area • A very easy business to run • Many recent improvements including: flat screen TVs, split systems, washing machine, dryer, hot water systems, painting and driveway upgrade. • 3 bedroom manager’s residence

On offer is the leasehold interest to the Apartments at Glen Isla. Glen Isla consists of 7 x 3.5 star apartments, all featuring quality furniture and fittings, 2 with spas. Facilities include solar heated inground pool, a meeting room, a hydrotherapy spa, intimate gardens and BBQ area. Enjoy the many attractions of Philip Island, Victoria’s premier tourist attraction. The Island is famous for its pristine beaches, safe family environment and life guard patrolled surf. As well as the beach experience, it boasts the excitement of the Grand Prix track catering for Motor GP, V8s, and Super Bikes.

A relaxing lifestyle on “The Island” LEASEHOLD OFFERING • Owner’s accommodation is a three Bedroom apartment FSC with sun deck • The vendors have recently completed a complete renovation - nothing to spend • Spacious office area with reception counter and modern equipment. • Suites are presented in magnificent condition • In ground solar heated swimming pool, hydro-therapy spa and sauna. • Tranquil garden setting with BBQ area.

GOLD COAST PERMANENT MANAGEMENT RIGHTS Nett profit: Est. $120,000 PRICE: $885,000

Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au Ref:MR002032 MR002173 Ref:

Tony Payne EXCLUSIVE AGENT Mobile: 0418 329 412 Melbourne office: (03) 9347 3100 Email: tonypayne@resortbrokers.com.au Ref: LH002080

BC salary of $2,800 per unit (awaiting accountant verification)

Nett profit: $59,042 Turnover: $197,456 PRICE: $200,000

This northern Gold Coast permanent management rights business performs in all aspects. Although the complex consists of only 28 units, the body corporate salary is over $78,000 per annum. We believe this to be one of the best paid caretaking jobs in SE Queensland. The current management have done all the hard work, ensuring the gardens are easy to manage. The manager’s unit has had c. $50,000 spent on it; it presents as near new and is the perfect family home.

In SE Queensland, it is rare to come across a manager’s unit of such size and quality for such an affordable price. The relationship with the body corporate is exceptional, demonstrated by newly topped up caretaking and letting agreement. There are absolutely no skeletons in the closest with this property. • 28 units, 16 in the letting pool • 24 years on agreements • Manageable by 1 person part-time • Renovated, well-priced manager’s unit • Perfect for 1st timers • Lengthy term + high BC salary = very secure business RESORTBROKERS.COM.AU 19

hat are the key benefits to this 34 room luxury Resort and Spa? Developed and managed by Australians; absolute beach front; 15 minutes from the new Lombok International Airport; branded a Peppers Luxury Villas and Spa; under development by highly experienced Australians. Land prices have doubled since the new airport opened, yet are still only 10% of Bali prices. Experts are predicting an increase of 300% in tourist numbers, due to direct flights to Bali, Singapore, Malaysia and now Perth, plus more to be announced. Domestic tourism is fuelled by a 280 million person population with growing middle class and Chinese tourist numbers are growing at a rapid rate. Get in early on the capital gain cycle. This is like Australia in 2002. Off-the-plan price of US $4.95m with staged payments for 100% ownership or an option to buy half. Passive returns expected to exceed 15% per annum.

Where in the world, is the biggest opportunity & why? S.E. ASIA – FUELLED BY STAGGERING STATISTICS • 34 rooms • Land size - 3,480 m2 • Licence and permits include: IMB (Building Permit), Boardwalk Permit, Hotel and Villa Location Permit, Right to Build Title Certificate and others • Branded by Mantra Group - Peppers Boutique Resort • Facilities include: gym and spa, restaurant and bar, reception, lobby, offices, swimming pool • 34 rooms in total - villas consist of 9 x 3 bedrooms (dual keyed) and the apartments consist of 1 x 3 bedrooms and 3 x 1 bedroom, and a 1 bedroom studio

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Projected nett profit: Dividends under full management, to exceed $800,000 pa in the first 5 years of operation PRICE: USD$4,950,000 REF:

20 RESORTBROKERS.COM.AU

Editorial determine is how much each unit is worth in the letting pool. For example, if the projected letting income from a unit is (say) $6,000 and the multiplier on your purchase is 4.5, then that unit alone is worth $27,000 to your letting pool. Examples of the features of clawback clauses include: not paying for units retained by the developer or its associates, only paying on receipt of a signed PAMD Form 20a Letting Appointment from an owner who has completed the unit purchase, and only paying for completed, furnished units (if applicable).

Tips for buying off the plan BY JOHN MAHONEY - MAHONEY LAWYERS There are a number of reasons why people want to buy management rights off-the-plan. It is often perceived as an opportunity as there is an expectation that: • t he multiplier will be lower when buying from the developer; and • t he profit could ultimately be a lot higher than that projected by the developer (especially for short term accommodation). It is also important that there is no stamp duty on the initial grant of the management rights, although there is still duty on the unit. Although there is GST on an off-the-plan management rights acquisition that is eventually remitted back to the buyer as an input tax credit. While the legal fees and general delays can be much greater than a normal purchase, the duty saving more than makes up for that as the duty can be over 5% of the price! Of course there are also risks of buying off -the-plan. But, if the items in this article are considered and acted upon, the risks can be substantially minimised. Tip Number 1. Deal with competent and respected people and get good advice early. Importantly, the first person you need to check out is yourself! Do you have the skills to bring this kind of business together? Permanent complexes are fairly straightforward. Many of my existing clients hear about a holiday building years before it is completed. Developers often approach experienced managers directly. Warning bells should ring if you have no experience and come across a major holiday or short term building six weeks before it is to be finished! Never sign an off-the-plan management rights contract without expert legal and accounting advice. These contracts are never standard. Tip Number 2. Trust but verify. The agent and the developer can be an excellent

source of information. But, it is critical to distinguish between information and ‘blue sky’. Information can be verified, blue sky cannot be. Blue sky includes, for example, unsupported estimates about likely rental or occupancy rates. It is important to identify, check, and verify any important assumptions about the business. Get good advice from an accountant with expertise in management rights to help with the verification. Your accountant will assist to establish price calculation and related assumptions. What is the breakdown between body corporate remuneration and letting income? What expenses have been allowed for? What is the expected occupancy? What are the other income sources (electricity supply, internet services, parking fees)? Is it appropriate that those income sources be included in the projections for sale purposes? Remember that projected profit does not equal cash flow! Depending on the size of the complex, nett cash flow (before interest) could be 10% or more below projected nett profit. Consider preparing separate cash flow forecasts. Again get your accountant to assist in this regard. Tip Number 3. Get good advice from an experienced lawyer on how to structure the clawback arrangements and deal with these issues up front so that agreement in principal can be reached with the developer. A critical question that is often ignored is, “How many units do I need in the letting pool to settle?” You can have the best clawback clause but if there are not enough sales to investors, the business might not stack up even with a major price reduction. In a holiday complex, consider if you require a minimum number of units to be fully furnished.

These are just a few examples of the many factors we look at in calculating clawback provisions. We have a comprehensive checklist that we use for working out a clawback/clawforward arrangement. Working these out at the beginning of the matter as part of reaching in principal agreement with the developer can save time, money and angst. Tip Number 4. The developer and its selling agents – ideally, the developer will have a good track record – find out about the developer’s other complexes. Speak to the managers of those buildings. What support will the developer offer you? This could include marketing support for websites and advertising, and assistance with identifying and rectifying building defects. Managers often need to spend significant time and money setting up the business and fitting out the office in the months leading up to settlement. Who are the agents selling units in the complex? What have they promised the buyers? Obtain copies of marketing material. Tip Number 5. Make sure that you are using a lawyer with extensive experience in off-the -plan management rights transactions. There will be items of critical importance that need to be resolved before and after the contract can be signed. Your lawyer should identify any immediately obvious issues in the agreements but also conduct a thorough review of the agreements and the by-laws in the due diligence period. Developer’s solicitors frequently use ‘off the shelf’ caretaking and letting agreements. Often, we see permanent townhouse complexes with agreements that seem drafted for a high rise holiday building and vice versa. High risk items that might need to be considered include, for example, strict office hours, or being required to carry out duties that are way beyond the expertise of a manager and are more properly the responsibility of a specialist contractor. These are but a few of the issues that an experienced lawyer will be able to identify and address.

One of the things that you need to RESORTBROKERS.COM.AU 21

n offer is a 34 unit motel which sits prominently on the main road into Bundaberg CBD. Boasting spa suites and a mix of self-contained and deluxe units, the property has accommodation to suit all guests. The planning of the motel at building stage was well thought out, making it easy to handle vehicle and guest movement. A major refurbishment has been underway with the exterior having a complete colour upgrade and the rooms also having been painted and fully renovated. The restaurant has new modern tables and chairs and has been completely revamped. It overlooks the pool and manicured gardens, adding another dimension and resort feel to the property. On inspection any buyer will immediately see the opportunity to take advantage of the work that has been recently completed. Bundaberg is not only a popular tourist destination and sporting capital of the Wide Bay but it is one of the most reliable 22 RESORTBROKERS.COM.AU

Bundaberg corporate motel leasehold NOT BOOMING BUT RELIABLE motel towns in Queensland. Reliant not only on mining, it benefits from steady corporate business. The town boasts 5 golf courses, excellent private and state schools and a large CQU Campus. • The closest motel to the Mater and Bundaberg Base Hospital • Spacious 3 bedroom owners residence with kitchen and large private deck • Modern dining room seats up to 60 guests • Long 22 year lease • Ample parking with 2 street entrances • Beautiful landscaped gardens

Len Booth EXCLUSIVE AGENT Mobile: 0438 139 422 Brisbane office: (07) 3878 3999 Email: lenbooth@resortbrokers.com.au

Nett profit: $274,348 Turnover: $896,154 PRICE: $960,000 REF: LH002118

Exceptional business return CENTRAL QUEENSLAND MANAGEMENT RIGHTS

Neville Littleton EXCLUSIVE AGENT Mobile: 0407 727 194 Brisbane office: (07) 3878 3999 Email: nevillelittleton@resortbrokers.com.au

his Central Queensland management rights is currently showing a 30% return on the business and an overall return of 19% for only 5 days work a week for 2 people. This business is now enjoying the impact Central Queensland mining, which is facilitating higher and higher rents and has resulted in 100% occupancy rates.

Net Profit: $227,000 PRICE: $ 1,200,000

REF: MR002103 23 RESORTBROKERS.COM.AU

The Body Corporate supply and maintain all the caretaking equipment and pay a gardener two days per week to mow and assist with the caretaking duties. The Body Corp also supply all the consumables. Wattle Park, often referred to as The Oasis in Central Queensland, is situated in a quiet northern suburb in a flood free area north

of the mighty Fitzroy River. It is only a short drive to the Rockhampton International Airport. The buyers have the option to buy the stand alone manager’s up market home as well as the manager’s unit/office block and put one in the rental pool. Redundant? Buy a top job. Be your own boss. No fly in fly out. No weekend work. • The manager’s residence is part of a freestanding office block • It is a spacious first floor one / two bedroom unit • Large ground floor office, computer room and laundromat • Large ground floor covered meeting/ recreational area • Large income business in a high rental demand location • Option to buy the managers 40sq up market home • Option to rent the managers unit. • The best option- BUY THIS MANAGEMENT RIGHTS!

Editorial

Multiple Vs Return MIKE PHIPPS - MIKE PHIPPS FINANCE It’s pretty much accepted wisdom in the management rights industry that the value of the business is assessed on the basis of a multiple on net profit. Some people call this the years times earnings multiple and it’s essentially the verified net profit for sale purposes times a number. When the number is referred to as a year’s times earnings that’s simply the number of years it will take to earn back the amount paid for the business. Of course, in nearly all cases, you don’t just buy a business when you purchase a management rights. There’s usually a unit attached and an obligation to own that unit will be reflected the caretaking and letting agreements. Indeed, it is the exclusive right to operate the business that attaches to the manager’s lot that gives the business its security and the lenders their confidence. I know virtually everyone who reads this column already knows how the multiple works but the underlying premise is worth summarizing because I think to some degree it’s past its use by date. If the multiple is used to arrive at a business value and individual values are assessed by comparison with other properties (recent sales) then how can the obligation to purchase the manager’s lot be ignored? Put simply, the total capital required to acquire the typical management rights includes both business and unit value. The viability of many management rights is directly related to the relationship between the rights and unit value. The higher the proportion of unit value to the

total purchase then the less viable the business is likely to be. The reasons for this are simple. The managers unit does not generate an income per se and thus is essentially a non income producing purchase. However, there is an obligation to purchase the lot in order to access the management rights business and hence income streams. No unit, no business ! If the industry continues to compare relative business value via multiples of net profit then the real return on capital and comparative investment returns cannot be readily assessed. The simple solution is to compare buildings via return on investment. A simple calculation of net verified profit as a percentage of the total purchase price (unit and rights) will reveal much when used to compare buildings. Take the simple example of two buildings each with a 5 times multiple netting $300K per annum. In isolation that’s a 20% ROI on a $1.5M rights purchase. Now let’s throw in a $500K unit for rights # 1 and an $800K for rights #2. The ROI is now 15% on rights #1 and 13% on rights #2. All things being equal it would seem that the better business is rights #1. Clearly a comparison of multiples in isolation would not have revealed the underlying ROI numbers. The second consideration is that the lower the ROI the less debt a building can carry and hence the less a potential purchaser can borrow. In my experience this will ultimately lead to a lower demand for rights #2 and a possible need to either find a purchaser with a high deposit or discount

the total price to attract a suitable buyer. It’s interesting to note that the industry average ROI in management rights is around 14% on the total purchase price. Of course, the ratio of unit to rights value ultimately drives the ROI so the lower the percentage of unit value the higher the ROI. In my opinion 60% rights : 40% unit (or better) is the sweet spot with anything approaching 50:50 being cause for concern. In the increasingly investment dollar competitive motel sector ROI is the benchmark when reviewing asset values. Interestingly enough motel freehold ROI averages stand at around 14% while leaseholds are running to 30% ROI averages. While very different businesses, motels and management rights have a certain cross over among operators and investors, so I think the adoption of ROI benchmarks across sectors makes good sense. Now, before all you industry experts tell me that there’s more to value and market acceptance than a simple return calculation….I know there is. Some people just have to live in a penthouse while others can put up with the outhouse. All I’m saying is that the outhouse resident will make more money and enjoy a better return on the capital employed. And don’t tell me capital gain on the unit compensates for a lower ROI……….we all saw what real estate capital growth did to unit / business ratios at the top of the property boom and it wasn’t pretty. If you want to speculate in real estate, management rights is not the way to do so. RESORTBROKERS.COM.AU 24

Fantastic business only in South Bank, Brisbane BE QUICK - THIS WILL SELL QUICKLY! Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

Nett profit: $135,189 projected PRICE: $540,758

REF: MRB002174

rom the highly acclaimed Sanchi Developments, with over 20 years of experience, we offer the superbly located ‘The Edge’ apartments. This complex is a shining gem in the Brisbane property market. Situated in one of Brisbane’s highest growth suburbs, South Brisbane, it shows some of the best statistics in town with a super low vacancy rate of 0.06%. This stylish urban abode provides sensational boutique living with 46 Ellivo designed apartments,with only six apartments per floor. The chic lobby impresses upon entry, while cool contemporary architecture delivers a cosmopolitan edge to the spacious apartments above. Completing the compelling ‘Edge story’ is the residentsonly garden lounge, secure basement

parking, direct lift access and, importantly, low body corporate fees. Escape and relax in your own private indoor-outdoor garden terrace. With its smart geometric design, contemporary landscaping and BBQ kitchen, it offers a wonderful space to entertain guests in style. Realise your urban nature at The Edge. Inside and out, the design-led apartments reflect the precinct’s cultured and eclectic vibe. Very manageable caretaking workload with a great body corporate salary. No gym or pool to worry about. The choice is yours purchase a one or two bedroom unit and reside in this fabulous new development or run from off-site with no requirement to purchase a unit or live on-site. • No requirement to live on site or own a unit • Very limited caretaking  • Extremely healthy body corporate remuneration starting with $1080 p.a. per lot increasing by CPI annually. • Brand new 25 year agreements  • 46 units  • Stylish cafe on ground level RESORTBROKERS.COM.AU 25

Artist impression

rand new luxury apartment complex comprising of 15 apartments on the beach in the heart of Copacabana on the beautiful Central Coast of NSW. This new 30 year lease is a fabulous opportunity to start up a brand new luxury apartment complex just footsteps from the beach. The landlord has spared no expense with this state of the art property that includes keyless entry, CCTV, underground lock up parking, lift access, pool and BBQ facilities, galley kitchens and much more. A savvy operator will thrive in this wonderful location with a choice of living on or off site and developing this property into a superb holiday complex. Being the only hotel / holiday apartment complex in the area this property represents an outstanding prospect to establish a niche following in one of the Central Coast’s most prestigious areas. With an incredible location and a state of the art facilities this property represents an enviable lifestyle and a lucrative prospect for a good operator.

26 RESORTBROKERS.COM.AU

Luxury self contained apartments on the beach LEASEHOLD IN CENTRAL NSW COAST A great option for those looking to downsize or start fresh on the beach and only 90 minutes from Sydney. Vendor finance is available for the right candidate which would see a prospective operator up and running without delay.

Shane Wynhoven EXCLUSIVE AGENT Mobile: 0424174592 Sydney office: (02) 9904 8224 Email: shanewynhoven@resortbrokers.com.au

Don’t miss out on this wonderful opportunity by the beach. • Only 90 minutes from Sydney • Keyless property • CCTV • Private pool and BBQ facilities • Spa facilities and separate shower in every apartment • 4 star quality • Underground parking • Lift access • Fully self-contained

Net Profit: $200,000 - $250,000 projected Turnover: $650,000 - $750,000 projected PRICE: $350,000 REF: LH002116

It doesn’t get much better than this! IMMACULATE LEASE IN THE HEART OF GLADSTONE Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Trudy Crooks EXCLUSIVE AGENT Mobile: 0477 882 210 Brisbane office: (07) 3878 3999 Email: trudycrooks@resortbrokers.com.au

Nett profit: $265,000 projected PRICE: $800,000

REF: LH002175

fantastic opportunity to buy a brand new 30 year lease. This incredible property has 12 pristine self-contained apartments and one of the best manager’s residence we have had the pleasure of offering. Boasting 3 double bedrooms, 2 living areas and a large open-plan kitchen and dining area. This 2 story home is ideal for a family and very rare for a property of this size. Last year this property ran at a staggering 100% occupancy. However, the current vendors are very realistic and have priced this property based on a projected nett of $265,000 which equates to a 75% occupancy. The current owners are looking to find lessees that they can have a good long-

term working relationship with by ensuring there is plenty of upside for their new tenant. Gladstone is a thriving port city on the central Qld coast, 550km north of Brisbane and approximately 1100km south of Cairns. The region has a combined population of 62,000. Gladstone is gaining momentum as a tourist destination as well as being the gateway to the southern Great Barrier Reef. The port city benefits from 16 flights a day from Brisbane, with direct flights from Sydney starting in 2013. • 12 beautifully presented self-contained units • Outdoor therapeutic spa and BBQ area • Air-conditioned and Foxtel throughout • Amazing 3 bedroom 2 story manager’s unit • Good return based on conservative projections • Incredibly easily run studio accommodation • Undercover car parking • Minimal common areas to maintain Contact us now! This opportunity won’t last! RESORTBROKERS.COM.AU 27

Agent & area profile Lindsay (Coop) Cooper - SE & Western Qld / North West NSW Our agents pride themselves on their local knowledge. They each look after a geographical patch, and grow to learn it intimately. We feel this adds greatly to the confidence with which a property can be sold. In this new feature we will get some thoughts on their local area and will also learn a bit about their personalities. Tell us about your area Well, if you imagine a big circle, it’s start on the Sunshine Coast, go up to Hervey Bay, move up and West to Biloela, then down and West through Augathella, Quilpie and Chareville, then over the NSW border to Moree and down to Glen Innes…..plus everything in between!

Your thoughts on your area Well, for a start, it’s bloody huge. I’ll travel around 80,000km’s a year. I don’t think there’s many brokers in the world who can say that. But I come across some great charcters during my trips; mostly mum and dad operators, all working hard.

What drives business in your area? It’s very diverse. Coastal areas are obviously quite reliant on tourism; these areas have been challenged over recent years but are definitely improving. As you go inland, 28 RESORTBROKERS.COM.AU

business is good. There are lots a properties burgeoning from the gas and coal boom, plus lots of properties with frontages on main country roads catering to the travelling public. Government employees working on the roads, in hospitals, a building projects etc fill a lot of beds.

What did you do before Resort Brokers? I created the original Ettamogah pubs at Table Top and on the Sunshine Coast. I leased and operated a large motel / restaurant property. I ran a construction company. Oh…and I also built a winery…to name a few things.

How did you end up at Resort Brokers? I was working with Clarke-Walker Park caravan brokers when the first grandchild was born; I wanted to return to Queensland and a good opportunity came up to build on what I already knew.

Challenges Opportunities What do you do in your spare time? My favourite things in life are my family, friends, food and grog. So my main pastimes are cooking, drinking and entertaining. I’ve been told I’m a pretty good cook.

Do you have a nickname? They call me Coop (amongst other names I won’t mention) and I’m known for my well-groomed moustache and my stylish silk shirts.

What annoys you? I don’t suffer fools!

It’s a money tree in the Surat Basin gas fields NEAR NEW LUXURY CABIN PARK / MOTEL Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

Nett profit: $401,000 Turnover: $513,000 PRICE: $2,290,000 REF: FH002125

his fantastic near new property has traded at capacity since opening its doors 18 months ago. It is a gem to run, requiring only 2 people and a casual cleaner. You might start early for breakfast but soon after that’s complete you have many hours of free time until you prepare a main meal for the guests. This normally consists of a single evening dish for approximately 10 people and is served from Monday to Thursday. There is not a lot of difference if you have a family and prepare the evening meal for them. It is made easy with a fantastically equipped kitchen.

These are fully self contained and look after themselves. The turnover is stable and consistent with strong tarrifs. Going forward this business is smack-bang in the middle of the gas hubs which will ensure strong corporate trade. • Brand new - just 18 months old minimum maintenance • Very profitable business with small work load • 20 minutes from major centre of Roma • In the middle of huge gas fields - the biggest in the southern hemisphere • Very modern, luxury cabin park / motel • 4 bedroom residence with two bathrooms • Absolute highway frontage from service road • Be part of the money-making machine!

The 2 bedroom units at the front of the property are permanently let to the teaching fraternity from the local schools. RESORTBROKERS.COM.AU 29

he Raintree Motel is being offered for the first time in many years. This 30 unit motel is a true B & B property currently being run by an owner couple with help from 2 casual cleaners. The motel presents in excellent condition and benefits from a high level of repeat clientele. Coupled with very solid occupancy and room rates, this motel is a very high earner. There is a good mix of room types including family, double, and twins. There is a swimming pool and BBQ area for guests and the motel is positioned within an easy stroll to restaurants, cafes and shops. Located on the Bowen Road “strip” this motel has very high exposure and is the first to be seen by travellers entering the district. The Raintree Motel offers a great lifestyle and business to new owners. Current owners have invested heavily in this property and it presents in excellent condition.

30 RESORTBROKERS.COM.AU

Booming Townsville B&B motel 4 STAR - HIGH OCCUPANCY There would be an opportunity to use the restaurant as a small conference and meeting centre and this would add further to the already substantial bottom line. The vendors will also negotiate a leasehold sale if preferred. • 30 unit, 4 star motel in Townsville City • Consistent occupancy of over 78% • Solid tariffs, high yields • Breakfast only prepared in the commercial kitchen • Restaurant closed - liquor license still in place • Fully self-contained 2 bedroom owner’s residence • Showing a massive 16% ROI • High repeat business from corporate trade • Lease also available

Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au

Nett profit: $574,000 PRICE: $3,600,000

REF: LH002156 / FH002155

Receivers Appointed CARETAKING AGREEMENT + MANAGER’S RESIDENCE Alex Cook EXCLUSIVE AGENT Mobile: 0467 600 610 Brisbane office: (07) 3878 3999 Email: alexcook@resortbrokers.com.au

• Unit and caretaking agreement for a 64 townhouse complex • 3 bedroom and 2 bathroom manager’s residence with covered courtyard and separate office on title • Lot 10 on SP 118255 • Located in southern Brisbane suburb - Beenleigh, Qld

Nett Profit: On application PRICE: Expressions of interest (date to be advised)

• BC salary of $64,271 • 7 years remaining on the caretaking agreement with an option of 5 years

REF: MR002176 RESORTBROKERS.COM.AU 31

Editorial

GREEN SHOOTS: Promise of growth ahead CATIE LANGDON Total spending by Australia’s domestic and overseas visitors surged 8 per cent in 20112012 to $95 billion, the strongest growth in 11 years. Positive improvements in the housing market suggest that sector is now in recovery mode. Saving levels are high, interest rates are low, our economy is stable. The seeds of growth are sprouting. What forecasters have come to refer to as ‘green shoots’ – the promising signs of more plentiful seasons ahead – have well and truly broken through. In fact, many business and property commentators are saying the only thing missing from this fertile economic ground has been consumer confidence. But that too is changing. The Commonwealth Bank – Mortgage and Finance Association 32 RESORTBROKERS.COM.AU

of Australia (MFAA) home finance index, released in late October, found nearly 78 per cent of survey respondents believed now was a good time to buy a home. “The property market is all about confidence and the survey confirms that good times are ahead, especially as interest rates continue to fall,” said MFAA chief executive Phil Naylor. “Come out, come out, wherever you are,” was the call Brisbane-based property researcher Michael Matusik put out recently to prospective home buyers, urging them to recognise the upward growth cycle had begun. For those who have been watching the market and waiting for the right time to buy, be they considering a residential or

commercial property purchase, there are now multiple signs the time has come.. Activity is lifting and, with increased demand, will also come a strengthening in values. Resort Brokers Australia managing director, Ian Crooks, says he feels this 2012-13 summer holiday season will mark a real turning point, with all the indicators in both the tourism and property markets pointing upwards. “I’m hearing more and more positive sentiment, and we’ve certainly experienced a lift ourselves in enquiry and activity,” Crooks said. “In the last six months, I’ve attended a number of international conferences and trade missions where the overwhelming

sense is that there has never been a better time to invest in Australian tourism.

Visitor Survey began in 1998,” said Federal Minister for Tourism, Martin Ferguson.

“We are seeing growing numbers of affluent travellers visiting Australia from China and other significant international markets, as well as experiencing a surge in baby boomer driven domestic travel. “These factors, combined with the increasingly positive outlook in the property market, targeted government stimulus initiatives and more room for interest rate cuts, will lead to strong, sustained growth.”

“While international visitor expenditure increased more modestly, the Australian Government’s $48.5 million Asia Marketing Fund and the recent launch of the next stage of (the) ‘There’s Nothing Like Australia’ (campaign) will build on this growth in future years.

Sustained, rather than ‘boom’ growth, is what is needed, according to forecasters BIS Shrapnel who see stronger housing market conditions ahead for Brisbane, Sydney, Perth and Darwin, in particular. In presenting the results of the 2012 QBE LMI Australian Housing Outlook report for 2012 to 2015, BIS Shrapnel managing director Robert Mellor said we needed “modest” house price growth, rather than a spike. “This would stimulate more construction and more development activity”, he said. Crooks agreed, saying new housing construction was one of the best ways to fire up economic growth. “New home building gets the economy going because it flows through to so many areas. Just think of what’s involved – finance, manufacturing, transport, wholesale, retail, professional and trade services, the list goes on and on.” Turning to tourism, the outlook is even more bullish, despite the still challenging high Australian dollar. The positive prospects are welcome news after last year’s series of destructive natural events which extended pain already inflicted by the GFC. Figures just released at the time of writing showed Australian tourism was rebounding and making good progress towards its ambitious 2020 industry target of doubling overnight visitor expenditure to $140 billion, from around $70 billion in 2009. Last year we managed to generate a $7 billion lift in visitor spending, the strongest in more than a decade. Tourism Research Australia’s State of the Industry 2012 report showed total spending by all visitors in Australia in 2011-12 was $95 billion. Domestic travel recorded the biggest gains, while strong growth in visitor arrivals from China and New Zealand offset declines in some international segments, such as from recession-affected European markets. More Australians were shown to be choosing to holiday at home. Notably, strong growth was recorded in domestic overnight travel expenditure, up 9.1 per cent to $50.8 billion. “With domestic tourism making up around three quarters of total visitor expenditure, it is pleasing to see that sector recording its best year for visitor expenditure since the National

“More work remains to be done to ensure the industry can reach its potential, particularly to increase accommodation, labour supply and skills under Tourism 2020, the Government’s long term tourism strategy.” One of the strategic priorities of the 2020 strategy is to encourage investment in tourism. (see our interview on P.38 with Tourism Australia managing director, Andrew McEvoy) The State of the Industry report found room stock in larger hotels, motels, guest houses and serviced apartments increased by 590 rooms in the last financial year. But it says 40,000 new rooms will be needed by 2020. More investment will clearly be required to increase room stock to meet expected demand levels. Business information analyst, IBISWorld, recently marked World Tourism Day by issuing a statement entitled “Australia’s tourism industry is taking flight.” Following what they described as “a tough few years for Australia’s domestic tourism industry”, IBISWorld general manager (Australia), Karen Dobie, said the industry’s outlook was “on its way up”, with total expenditure tipped to reach almost $72 billion by 2013. The growth in international tourism, particularly from Asian markets, was expected to bode well for the accommodation sector, with IBISWorld anticipating total spend across hotels, motels, resorts and serviced apartments to reach $11.4 billion in 2012-13.

cent in Brisbane. Good news for tourism industry service providers has also been growth on the aviation front. Tourism Australia reports there is more than $26 billion worth of aircraft and airport investment in the pipeline. This goes hand in hand with increasing inbound capacity, as airlines from emerging markets like China introduce new direct services to Australia. Recent additions have included new routes announced by China Southern, China Eastern and Sichuan Airlines. All this positive news is, of course, tempered by warnings that we’re not out of the woods yet. There are pockets of the residential real estate market, for example, still battling issues of poor affordability and stock oversupplies. And government belt-tightening is rarely off the front page. In Queensland, the Newmanled LNP government’s significant cuts to jobs in the public sector have been much publicised. At the same time, the resources sector has edged back from the dizzying heights of the mining boom. But, according to Resort Brokers Australia, a slow-down in one sector almost always translates to growth in another. “In our case, redundancies and employment reductions such as those now being experienced in the public sector and mining industry, always lead to increased demand for motels, holiday parks and management rights,” Crooks said. “We are already seeing this trend emerge again. “Former public servants with generous redundancy packages and cashed-up former mining sector workers see the benefits of buying themselves a secure job, a rewarding lifestyle and an investment that offers strong returns.”

“And with domestic tourism, which currently contributes 77.3 per cent of total accommodation revenue, also on the up, the future is certainly looking much brighter for Australian accommodation operators,” Ms Dobie added.

As if to underline the point, two operators recently interviewed for the tourism informer by our regular columnist K. Ink have come to the accommodation sector from miningrelated jobs. Crooks expects they’ll be joined by many more over the next 12 months.

Indeed, Tourism Australia’s official Tourism Forecasting Committee, chaired by demographer Bernard Salt, expects domestic visitor nights to grow to 290 million nights this financial year, an increase of 2.1 per cent.

“They took the opportunity to secure highpaying jobs during the mining boom, but it is not a lifestyle you can sustain, especially not for families,” he said.

Results to date have been very positive. When the occupancy figures came in after the September school holidays, major players, including Mantra Group and Wotif. com, reported strong growth in bookings compared to last year. In Queensland, the bookings were reportedly up 16 per cent on the Gold Coast, compared to the same period last year. They rose 17 per cent in the State’s tropical north, 10-15 per cent on The Sunshine Coast and 10 per

“I’d say anyone moving out of the mining industry has timed it perfectly to buy tourist accommodation businesses, just as the market is set to climb. “I see this as a time of great opportunity and I’m looking forward to 2013 as a year when further market stabilisation and increasing confidence will lead to steady and sustained growth across both the tourism and property industries.”

RESORTBROKERS.COM.AU 33

he Springsure Overlander Motel is a fantastic property that is only 5 years old. Built in stages, the last 10 units were erected only 1 year ago. Springsure is a small rural township located 70kms (35 minutes) south west of the booming town of Emerald. This attractive property is built of completely maintenance free materials. It would make a fantastic investment whether you buy the entire motel in one line, or the land and buildings as a commercial investment. The motel consists of a 2 bedroom manager’s residence which opens into an attractive office/ reception area. It also boasts a stylish restaurant which seats 50 people and a further 12 can enjoy alfresco dining on the deck. The cocktail bar has a good ambience where people enjoy a drink before and after dinner. The whole design of the operation requires minimum staffing. The current owners are serious about selling this property. In the last financial year the motel ran at almost 100% occupancy. 34 RESORTBROKERS.COM.AU

Central Qld mining motel BE A PART OF THE BOOM!

However the sale price has been based on an occupancy of just 75% and a slightly lower tariff than what was achieved last year. Despite the press, this area has two new coal mines that are about to open, so ongoing business is assured. This property has always been under management and would fire with an owner/operator! • 40 rooms consisting of 12 self-contained studios with small kitchenettes • No pool - however, there is a fantastic public pool just 100m up the road • Direct internet connection / Foxtel • Big guest laundry with coin operated washers and driers • Well located at the start of the main street in Springsure

Ian Crooks EXCLUSIVE AGENT Mobile: 0411 171 648 Brisbane office: (07) 3878 3999 Email: iancrooks@resortbrokers.com.au

Trudy Crooks EXCLUSIVE AGENT Mobile: 0477 882 210 Brisbane office: (07) 3878 3999 Email: trudycrooks@resortbrokers.com.au

Nett profit: $1,244,000 (2012) / $1,035,000 (2013) Turnover: $936,372 (with 30 units) 2011 / $1,683,169 (2012) PRICE: $5,750,000 REF: FH002177 / LH002180 / INV002181

Australasia’s largest serviced apartment group SUBSTANTIAL OFF THE PLAN LEASEHOLDS Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

n offer is two separate opportunities to secure the initial leasehold interests of new serviced apartment businesses in suburban Melbourne and Adelaide CBD. Both are under construction and are due for completion in the second quarter of 2013. Each property will be completed to a 4.5 Star standard and will provide the successful purchaser with the opportunity to be part of the Quest Serviced Apartment franchise network.

PRICE: POA

REF: LH002159 / LH002161

With nearly 25 years in the serviced apartment market, Quest has achieved continual growth with in excess of 140 businesses in the franchise network. Significant market research has identified

that both properties are ideally situated to service the accommodation needs of the surrounding areas. Both Quest Frankston on the Bay and Quest on Franklin will offer long secure leasehold tenure and provide an initial rent free period and periodic market reviews. • Quest Frankston on the Bay features 82 fully furnished apartments including 65 studios, 13 x 1 bedroom and 4 x 2 bedroom • Quest on Franklin features 89 fully furnished apartments (117 Keys) 50 one bedroom, 11 x 2 bedroom, 17 x twin key 2 bedroom and 11 x twin key 3 bedroom • Long lease tenure. • Initial rent free period • Market reviews at each option and annual 4% increases • Each apartment will be furnished to the highest standards of the Quest Group • Significant franchisor support provided

RESORTBROKERS.COM.AU 35

ituated in the heart of booming Mt Isa is this 19 room, separately constructed, villa-type, motel complex. The motel consists of 18 single self-contained rooms and 1 double self -contained room, all with their own ensuite and detached laundry. There is also a 2 bedroom manager’s unit. The initial 9 rooms were constructed in 2007 with the additional 10 rooms constructed in late 2008. The business is easily run with the current vendor operating it remotely. All rooms are currently booked on a long-term basis. There are two staff members – 1 full time and 1 part time. Both staff members have been with the business for over 2 years and are passionate about their job. They would be more than happy to stay when the business changes hands. This business is easily run and with the nearby phosphate mine just being approved, there is certainly going to be a growing demand for accommodation in the town. An inspection will certainly impress.

36 RESORTBROKERS.COM.AU

Outstanding opportunity on Mt Isa freehold 22.5% RETURN Mount Isa came into existence because of the vast mineral deposits found in the area. Mount Isa Mines (MIM) is one of the most productive single mines in world history, based on combined production of lead, silver, copper and zinc. • 19 self-contained units and 2 bedroom manager’s unit • Low set timber framed vinyl and hardiplank clad buildings • Built in two stages in 2007 and 2008 • No restaurant or food • Rates are $110 per night • 50% tariff paid to secure room when worker on their week off • Located in the Mt Isa CBD

Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 3999 Email: chrisrowe@resortbrokers.com.au

Steve Campbell EXCLUSIVE LISTING Mobile: 0407 220 668 Brisbane office: (07) 3878 3999 Email: stevecampbell@resortbrokers.com.au

Nett profit: $417,500 Turnover: $579,600 PRICE: $1,880,000

REF: FH002185

Caretaking only in serene surroundings

SHOWING 16.75% OVERALL RETURN Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

Nett profit: $114,378 PRICE: $682,500

REF: REF:INV002166 MR001779

his near new complex of eighty townhouses and villa development is located in the serene area of Bellbowrie. Retirement developments have been working on this project for over 5 years, bringing it to the beautifully presented complex it is now. The villas offer an absolute freehold title, land and buildings so they may be sold, mortgaged or bequeathed at any time. This 55+ community is designed for independent living…. enjoy a perfect northerly aspect from the large undercover entertainer patio or verandah. The villas are conveniently located near a substantial shopping centre including a Coles supermarket and major public transport routes are within easy walking

distance. Because the estate harvests all the stormwater into huge storage tanks, there are no council imposed restrictions on hosing and watering. 4-5 days of work per week with an outstanding 2 bedroom unit or 3 bedroom townhouse with lots of extras. With resort like feature like the swimming pool & gym. Large community centre with theatre, pool table and commercial kitchen which can be used by any resident for use, free of charge. The centre also overlooks a stunning pond that is maintained by council. Brand new 10 year agreement on the accommodation module. Different manager units options with two and bedroom townhouse and villas available. • 72 units built - the final 8 are already under construction • Body corporate salary $114,378 increasing by CPI • Standard module (under the act caretaking only must be on the

RESORTBROKERS.COM.AU 37

Editorial

The many faces of the accommodation industry CATIE LANGDON - PART 3 IN OUR SERIES

Continuing our series profiling the many faces of Australia’s accommodation industry, we introduce you to the leaders and innovators, characters and canny operators of tourism. These are their stories. consumer-generated promotions, evolving into a $250 million three-year campaign that now runs in 25 countries, in 17 different languages. “It has been downloaded more than 30 million times, which makes it one of the world’s most successful advertising campaigns,” McEvoy says with understandable satisfaction. “With a strong digital and social media focus, it works with consumers and it works because people want to partner with it. It demonstrates a more sophisticated, contemporary and energetic Australia.” When asked about the 2020 target, McEvoy is realistic, but upbeat. “People always refer to it as a $140 billion target, but our target is really the $115 billion to $140 billion range.

Andrew McEvoy:

Australian tourism’s rainmaker

Andrew McEvoy is about to enter his fourth year as managing director at Tourism Australia. He’s adamant there has never been a better time to be part of this country’s dynamic travel and accommodation sector. And he never misses an opportunity to tell you why. That’s his job, of course. But there is no doubting his conviction. Tourism Australia (TA) is the agency tasked with attracting international visitors to our shores, and encouraging those of us lucky enough to live here to travel within them, for leisure and business. McEvoy oversees the organisation’s global marketing activity aimed at driving growth in an industry that currently generates more than $95 billion in total spending each year. That figure is already well up on where it sat in 2010 when he stepped into the role. Leaving aside earnings from day travel, overnight tourism expenditure back then 38 RESORTBROKERS.COM.AU

totalled around $70 billion. In the 2012 financial year, it reached $78 billion. But McEvoy and his team aim ever higher. Under the Tourism 2020 plan, TA has set itself the major challenge to double overnight consumption to $140 billion. So, what will it take to achieve this ambitious target by 2020? “A great deal of hard work,” McEvoy insists. “There is no silver bullet, rather a determined strategic approach and a lot of hard work by a lot of people.” That work is underway in earnest. And the strategy seems to be working. With the support of TA chairman, former Qantas boss Geoff Dixon, McEvoy and his team are achieving some impressive results. Recently they rolled out the latest instalment of the “There’s nothing like Australia” campaign, which began in 2010 with an invitation to Australians to share their favourite local holiday destinations with the world. This triggered one of the biggest ever

“Hitting that range requires growth of around 6 per cent per annum, which is actually not that ambitious. We are running better than trend, and we are starting to hit our targets. “I am very confident we’ll get there. And that will be quite an achievement.” In these words, you can hear the confidence and determination that prompted his chairman to describe McEvoy as “a great advocate for tourism.” Dixon was recently quoted in an article in The Australian (Damon Kitney, Sept. 21) saying McEvoy is “very good strategically, but also very good on his feet. After a period of upheaval at TA, he has brought a real sense of direction to the place.” McEvoy came to TA, he said, with some definite ideas to expand the role of the organisation to better facilitate investment in the tourism sector. “That was always my frustration,” McEvoy admitted. “That people were just relying on the next big ad. TA has become a more full service agency. But it still goes back to our core strength, which is marketing. “We are a marketing entity. We will always drive tourism through traditional and now digital marketing and distribution activities and networks.

“But it is also about the key things we need to grow Australian tourism, and they are infrastructure and access. It is firstly about how good your product is, then how good is the access to your product, and then its effective marketing and distribution.” That’s where McEvoy returns to his point that now is the best time to invest in Australian tourism. Growing and improving Australia’s accommodation and aviation sectors are major priorities. “We need additional hotel rooms in our capital cities, and not so much more, but better, higher quality rooms in the regions,” he says. “We need more signature product, accommodation that celebrates the destination it’s built in. Australia can do that so well and there should be more of it.” For investors, he says, accommodation is a lucrative sector with great appeal. “The hotel sector has been the best performing asset class for the last three years, ahead of office, retail and industrial. Owners and operators are making money. “This year alone, something like $1.4 billion worth of hotel deals have been transacted in Australia, and more than 80 per cent of this is coming from international investors. It is a gradual process building room stock, but the pipeline is strong.” On the aviation front, big things are happening more quickly. Inbound capacity is building strongly. “Qantas and Virgin Airlines are of course our primary partners. But we now partner with 20

carriers globally, having secured major deals with airlines such as Emirates and Etihad, China Southern and China Eastern, Singapore Airlines and several low-cost carriers. “It is true TA is taking a more commercial role,” McEvoy explained. “But ours is more of a rainmaker role. We tell the story of why Australia is the best place to invest. “We work in partnership with Austrade. We understand the consumer and they understand the investment community. We sell into the investment community, then get out of the way.” McEvoy agrees TA’s primary focus is international visitor growth, and that it has deliberately and significantly accelerated its pursuit of Asian markets. This is a ‘yield strategy’, aimed squarely at chasing the markets that will deliver the greatest benefit. “Domestic tourism is strong. It accounts for about three quarters of our market in terms of volume. But not in terms of spend,” he’s quick to point out. “International visitors now generate around 38 per cent of our tourism income. By 2020, that will be more like 50 per cent. Our focus is on yield, not numbers.” He returns to an oft-repeated message about quality. “We have to lead with our best”, McEvoy insists. And that applies to everyone with a stake in Australian tourism, beginning with individual owners and operators. “The best predictor of the future is consumer behaviour,” he says. “Success in our industry comes down to the quality of your

4,000 tweets, 1,000 facebook posts, from 250 humans in Canberra An estimated 4.2 million Australians were able to share in the experiences of the 250 lucky ‘Humans’ that travelled to Canberra for the first weekend of The Human Brochure. Thousands of tweets, Facebook posts, Instagram pictures and Foursquare checkins were posted over the past weekend, as the first round of Humans to visit Canberra shared their experiences of our nation’s capital with their extensive social media networks. The Human Brochure is a world-first advocacy campaign from Australian Capital Tourism that will bring 500 social media savvy Australians to Canberra for a free ultimate weekend getaway – the only condition being attendees had to share their experiences via social media. This past weekend saw the first group of 250 Humans take on Canberra and resulted in an onslaught of #HumanBrochure across

all social media channels. It’s estimated this reached over 4.2 million Australians, with the hash tag trending in the top five for most of the weekend, beating out the Windows 8 launch, Halloween and even Justin Beiber for a short time. The campaign website, www. humanbrochure.com.au, was launched prior to the weekend, and is now continuing to aggregate all content using #HumanBrochure to ultimately create the world’s first Human Brochure all about Canberra. Sentiment analysis of social media activity over the weekend showed visitors overwhelmingly had a positive experience, sharing thousands of unique updates, comments, reviews, photos and videos of their time in Canberra. Ian Hill, Director of Australian Capital Tourism, said “The weekend was a big success with a fantastic level of engagement

product and service. “In my experience, the most successful operators are those who have great attention to detail and great service acumen, and who put a lot of emphasis not only on attracting customers, but on getting them to come back. “More than ever, power is in the hands of the consumer. It has always been that way. But what has changed now is technology, the scale of the networks, the ability for messages, positive or negative, to go viral. “If your customers have a good experience, they will tell your story better than anyone.” Which, when you think of it, is where the whole concept of “There’s nothing like Australia” began – with Australians telling the world what we love about this country. Andrew McEvoy first moved into the tourism industry some 20 years ago, after an initial career in journalism. The “transience” of journalism – today’s news, tomorrow’s fish and chip wrapper – left him unfulfilled. He wanted a role that involved working towards goals and achieving outcomes. He still uses the skills he learned as a journalist, but now he is telling the story of Australia on the world stage. His stories are aimed at bringing the world to Australia to sample its unique experiences. “Australia lies in one of the most exciting growth regions in the world, Asia” he says. “And we are the most sought-after destination in that region. “This is an incredibly exciting time to be in tourism. The opportunities are immense.”

Editorial

and sharing. The campaign has been designed to broaden the appeal of the ACT and show the real side of what our fabulous destination has to offer. “Whether they were an adventurer pedalling up and down Mt Stromlo, a foodie enjoying their seven-course degustation menu, one of the arts and culture group gathering in the gallery or one of our fun families that met Lauren Jackson at the AIS, everyone had a great story to tell and a fabulous experience in Canberra”. Douglas Nicol, Creative Partner and Director at The Works, the agency that created the campaign, added “The concept was simple, get social media influencers to experience Canberra and tell people about it, and that’s exactly what they’ve done across all social media platforms. The numbers are beyond our expectations and importantly the sentiment is also tremendously positive.” RESORTBROKERS.COM.AU 39

ocated right on the water at the southern end of the Hinchinbrook Channel, this property overlooks the heritage listed Hinchinbrook Island. Hinchinbrook Marine Cove comprises of 1.5 hectares of tropical gardens with 20 motel rooms, 9 waterfront apartments, 12 x 2 bedroom townhouses and 11 cabins. The property also features a commercial laundry, a 3 bedroom manager’s apartment, 2 x 3 bedroom apartments, licensed restaurant, full commercial kitchen, large conference centre, shop (with fuel), BBQ facilities, 2 large in-ground swimming pools and access to two boat ramps and fishing pontoons. The current owners have operated the business for just over two years as owner operators and have turned this property into a successful and profitable business. The business relies on a variety of income sources with a definite split between accommodation, food and beverage and the Channel Inn (a retail shop selling fuel and takeaway food) . The accommodation is sourced through various sites and is a mix between corporate (government and private

40 RESORTBROKERS.COM.AU

Australia’s best kept secret LEASEHOLD OFFERING

enterprise), domestic travellers (fisherman and locals) and international tourists. The current vendors of the business have secured the freehold component with the freehold owners under a ‘put and call option’. This provides a future opportunity to purchase the entire site.

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 399 Email: shanemullins@resortbrokers.com.au

The trading income for the first 3 months of this financial year is in excess of $600,000. This is an exceptional opportunity. ENQUIRE NOW! • Lease - 20 years from 2010 • Rent free period until August 2013 • Magnificent water views • Large conference centre • Option of three manager’s apartments • 2 x large swimming pool

Nett profit: $505,000 Turnover: $2,022,000 (2012) PRICE: POA REF: FH002122

The working man’s money pot THIS IS YOUR OPPORTUNITY! Trudy Crooks EXCLUSIVE AGENT Mobile: 0477 882 210 Brisbane office: (07) 3878 3999 Email: trudycrooks@resortbrokers.com.au

Nett profit: $523,730 PRICE: $1,200,000

REF: LH002179

walk to Gladstone airport and opposite Harvey Road Tavern and Dan Murphys. In the area there are many shops including Harvey Norman and Bunnings. If you are a football fan the Marley Brown Football Oval (home to football in Gladstone) is a 2 minute walk away.

This property can easily be run by a husband and wife team who oversee the 5 casual cleaners and cooking staff.

This property consists of 26 good motel rooms, a central in-ground pool, plenty of communal seating areas and a small fully staffed 26 seat restaurant for in-house guests only.

• 26 generous sized motel rooms • This property has good open flow and is well laid out • In-ground pool • BBQ area • Easily run restaurant • 3 bedroom manager’s unit • A fantastic detached work shed

re looking to make a lot of money quickly? If you are this is the one for you! Located in bustling Gladstone this motel runs at nearly 80% occupancy. It benefits from the booming coal seam gas trade and all related industries.

The manager’s residence is a good sized unit and adjoins the dining room and kitchen. It consists of 3 good sized bedrooms, lounge and separate dinning room.

A buyer with vision who is willing to make the working man feel comfortable will be rewarded ten fold and will set themselves up for life.

Hurry! Don’t miss this opportunity!

The property is located within 5 minutes RESORTBROKERS.COM.AU 41

$485,000 PRICE CUT

esort Brokers are proud to offer for sale the 4 Star Outrigger Resort, Burleigh Heads. The property is in the heart of Queensland’s Gold Coast and is only 1 minute walk to a patrolled surfing beach. The resort includes management and letting agreements over 55 studio suites, together with conference and business facilities, outdoor resort facilities, undercover security parking and an off road coach bay. The air-conditioned manager’s unit consists of 2 bedrooms with built-ins, ensuite and main bathroom, open plan living/ dining adjoining modern kitchen, a private courtyard and a basement car park. It also includes an attached reception, 4 store rooms, 2 signage areas, tool and pool store room and laundry. Burleigh Heads is one of the most picturesque suburbs on the fabulous Gold Coast. It is centrally located, with Coolangatta to the south and Surfers Paradise to the north.

42 RESORTBROKERS.COM.AU

G.C. 4 star Management Rights WILL TRADE INCOME GENERATING ASSET UP TO $1M The main tourist attraction of Burleigh Heads is a national park that is full of natural beauty and a variety of wildlife. Facilities include: • Ferelli’s Restaurant (operated by others / not included in sale) • Swimming pool • Spa • Children’s wading pool • Conference & convention facilities • Office services / business centre • Safety deposit box • BBQ entertaining area • Coin operated laundry • Secure basement car park

Ian Dore Mobile: 0412 752 238 Brisbane office: (07) 3878 399 Email: iandore@resortbrokers.com.au

Nett profit: $283,157 PRICE: $1,750,000

REF: MR002158

Gateway to the Sunshine Coast

Up a short set of stairs is the bright and airy 3 bedroom manager’s residence with ensuite, separate laundry and large bedrooms. The modern kitchen and lounge area open into a covered patio.

STUNNING MANAGEMENT RIGHTS

The latest national tourism figures indicate a renewed popularity in holidaying at home, with the number of Australians taking a Queensland holiday increasing 6% to 7.6 million in the year to June 30. The Sunshine Coast is already seeing this strong growth and solid advance bookings are eveident.

Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 3999 Email: glennmillar@resortbrokers.com.au

Tyler Millar EXCLUSIVE AGENT Mobile: 0411 271 761 Brisbane office: (07) 3878 3999 Email: tylermillar@resortbrokers.com.au

Nett profit: $317,982 PRICE: $2,249,000

REF: MR002083

ocated at the southern end of Queensland’s Sunshine Coast, this well maintained 7 year old complex is the first landmark holiday building you see as you enter Caloundra’s CBD from Brisbane. The complex features 53 x 2 and 3 bedroom apartments over 11 levels. A major feature is the resort’s 12th floor rooftop accessed via two high speed elevators. Facilities include a fully equipped gym, sauna, BBQs, heated swimming pool and spa. The views over the Pumicestone Passage, Bribie Island and the Glasshouse Mountains are spectacular. The complex features a large hotel style lobby and spacious reception area with a number of work stations, as well as a private back office.

This complex is well presented and will appeal to buyers looking to capitalise on this growth potential. • Long agreements with 18 years remaining on term • 53 apartments, 38 of which are in the current letting pool • Located in CBD minutes from the beach, shopping restaurants and major attractions • The resort is officially 4.5 star rated as well as having the T-QUAL quality assurance accreditation

RESORTBROKERS.COM.AU 43

Editorial

(both overseas and interstate) and natural increase. These two components are used to compute demand for residential housing.

Babies donâ&#x20AC;&#x2122;t buy houses ALLY McDADE - LANDMARK WHITE

The first component of population growth is migration. When the issue of dwelling under-supply was promoted circa 2004, migration to Queensland was booming and showed no signs of slowing. In 2008, total migration to Queensland had peaked at roughly 84,000 new residents. This level of migration was a 35% increase from two years prior and is believed to be in direct response to additional employment opportunities in Queensland and a then, more livable and affordable State. Three years later, both interstate and international migration have plummeted by 54% and 47% respectively. Whilst it may appear population growth has returned to long term trends, if the natural increase component is removed, the decline in migration is apparent and illustrates the real level of demand for residential housing. Migration is arguably the most significant contributor to demand for housing in Queensland and the declining migration levels from 2009 to 2010 have significantly eroded demand. Unfortunately for Queensland, increasing migration is a slow process that only comes from a strong economy, affordable housing and a lower cost of living. Apart from mining employment, external market forces have, at present, removed these advantages. The second component of housing demand is natural population increase which is comprised from the equation; births less deaths. It is understood that some estimates compute dwelling demand based on total population growth (migration and natural increase). This calculation is fundamentally incorrect, as birth rates do not constitute demand for additional housing. Simply put, babies donâ&#x20AC;&#x2122;t buy houses. They do however contribute to household size.

Reports of residential housing undersupply in Queensland have echoed through the market since 2004. Eight years on, the primary factors driving demand for residential property in Queensland have shifted dramatically, yet many reports suggest a current shortage of dwellings. The last three years of population movement in Queensland have recorded a significant decline in migration levels. Additionally, the 2011 census data released on June 21st reports the average household 44 RESORTBROKERS.COM.AU

size for Queensland has remained stable at 2.6 persons per household. These changes to the core drivers of residential housing demand indicate suggestions of a current housing shortage are in need of review. Evidently, there is no denying Queensland faces long-term supply concerns due to the projected recovery of population growth, however at present there is limited cause for concern. Population growth is the primary driver of the residential market comprising migration

Changes in household size are an important element in determining demand for residential housing. The 2006 census recorded average household size in Queensland had fallen from 2.7 persons per household in 2001, to 2.6 persons per household. Since this period, forecasts indicate that as at the 2010/2011 financial year, average household size has fallen to approximately 2.56 persons per household. Additional forecasts indicate average household size will fall to 2.45 persons per household by 2031. This declining household size has been a strong catalyst in assuming a significant increase in demand for housing and therefore suggestions of a current under-supply of residential housing in Queensland.

Queensland Population Movement 2011

33,550

9,608

Demand and Supply of Queensland Residential Dwellings

35,791

60,000

2010

50,000

2009 Number of dwellings

2008 2007 2006 2005

40,000 30,000 20,000

2004 2003

10,000

2002 0

20,000

40,000

60,000 people

net overseas migration

80,000

100,000

net interstate migration

120,000

2007

natural increase

Source: ABS & LandMark White Research

The first release of the 2011 ABS census data notes average household size has remained stable at 2.6 persons per household. Based on current affordability pressures, increasing household costs and the general low level of consumer sentiment, LandMark White is not surprised by this result. Current record high saving patterns and struggling retail trade figures suggest Queensland residents are cutting costs. This environment is resulting in an aversion to commit to a mortgage, and possibly a move to shared accommodation to reduce rental costs. Based on the stable household size and stalled migration figures, LandMark White has calculated virtually no under-supply of

residential housing on a State basis. Based on our estimates, the four years from 2007 to 2010 indicate a combined demand of approximately 154,000 homes with supply totalling 150,000 homes. This results in an under-supply of 4,000 dwellings. Given average demand over this four year period equates to circa 38,500 homes per annum, this level of under-supply equates to just over 1 month of demand. We therefore sit at equilibrium. As migration continues to stall and household size remains stable, there appears to be no short term concerns of a residential housing shortage. The stagnant economy, rising unemployment rate and concerns regarding overseas economies

2008 total demand

2009

2010

total supply

Source: ABS & LandMark White Research

continue to plague Australians and are predicted to undermine all sectors of the residential market in the coming 12 months. An encouraging sign however is that migration levels increased slightly for 2011, off their lows in 2010. Perhaps this indicates we may2010 have passed the bottom of the cycle. If population growth recovers to long term expected trends, and the construction industry remains static, Queensland is sure to face an under-supply of residential housing. Increasing the Queensland population will be driven by a strong economic recovery. When this recovery comes, the Queensland market will move to an under-supply with the inherent upward pressure on prices that brings.

RESORTBROKERS.COM.AU 45

n offer is the leasehold interest of the Marine Hotel, Cardwell, a licensed hotel/tavern including accommodation (8 motel units), 15 gaming machines, TAB, Keno and off premise attached bottle shop. It operates all services 7 days a week to locals, corporate workers and tourists. This business benefits from a large local base (the only pub In town), which is fuelled by local events, frequent live entertainment and good fishing. The Marine Hotel is located on the Bruce Highway overlooking the wonders of Hinchinbrook Island. Cardwell is located at the northern entrance of the pristine Hinchinbrook Channel and offers an unparalleled gateway to Hinchinbrook Island and the Great Barrier Reef. The Hinchinbrook region is renowned for containing some of the most outstanding and spectacular islands, reefs and waterways of the Great Barrier Reef including, of course, some great fishing and crabbing. 46 RESORTBROKERS.COM.AU

I’m still standing & better than ever HOTEL LEASEHOLD OFFERING The hotel was completely refurbished in the last 12 months after the effects of Cyclone Yasi. The hotel has benefitted greatly from this refurbishment with newer poker machines, a new commercial kitchen, a brand new bar area (including cold rooms and fresh coat of paint), all resulting in increased trading for all. A great opportunity! • 8 motel units • Commercial kitchen • 15 new gaming machines • TAB/Keno facilities • 2 bedroom manager’s residence • Detached bottleshop on-site • Large front deck over-looking the Pacific Ocean with uninterrupted views of Hinchinbrook Island • 8 years remaining on lease

Shane Mullins EXCLUSIVE AGENT Mobile: 0447 185 001 Brisbane office: (07) 3878 399 Email: shanemullins@resortbrokers.com.au

Nett profit: $827,000 Turnover: $3,100,000 PRICE: $1,750,000 + SAV REF: LH002158

Freehold opportunity in North Queensland city THIS MUST BE SOLD!

Email: chrisrowe@resortbrokers.com.au

e are offering the freehold interest of the Coolabah Motel in Townsville, North Queensland. This is a 38 room motel with 2 manager’s residences. The motel is situated on Bowen Road, Townsville’s very popular motel strip. It occupies over 1 acre of freehold land and is positioned to attract traffic entering the city from all directions.

Nett profit: $317,000 PRICE: $2,285,000 ONO

There is a restaurant and fully equipped commercial kitchen, both closed for some time. Some refurbishment has been completed over the last few years including new bathrooms to the executive units, new carpets, flat screen TV’s, fresh painting, and new kitchen bench tops to all units. All rooms are self contained and offer basic cooking.

Chris Rowe EXCLUSIVE AGENT Mobile: 0408 225 220 Brisbane office: (07) 3878 399

REF: FH002164

This is an opportunity for a new and enthusiastic operator to cash in on the lucrative hospitality industry currently being experienced in North Queensland. This motel is positioned well to attract business from the Defence Force, hospital, JCU University, as well as general tourist trade. This Vendor MUST sell and has listed at a very realistic price. Inspect now to avoid disappointment. • 38 rooms of various type including; executive, standard, family, and budget. Also 3 bedroom unit for groups. • All rooms are self contained and have near new kitchen fitouts • New bathrooms to executive units • Restaurant and kitchen closed, opportunity to increase revenue with breakfast • 2 bedroom fully self contained manager’s apartment • Swimming pool and BBQ for guests • Currently showing 15% return on investment, capable of much better • THIS PROPERTY MUST SELL!! RESORTBROKERS.COM.AU 47

having reached finality in negotiating the terms of their bargain, are immediately bound by the agreement and neither party may withdraw.

Editorial

Although strictly the more formal agreement, once entered into, discharges and replaces the earlier agreement, execution of the document is a matter of formality. (2) It may be a case in which the parties have completely agreed upon all the terms of their bargain and intend no departure from or addition to that which their agreed terms express or imply, but nevertheless have made performance of one or more of the terms conditional upon the execution of a formal document.

Offer & Acceptance DAVID BURROUGH - HILLHOUSE BURROUGH McKEWON In the midst of negotiations for the purchase of a motel parties haggle, over price, dates and terms. We wish to alert you to some of the pitfalls of these pre contractual negotiations and agreements. Negotiations should canvass the five cornerstones of a binding contract as follows: 1. Offer 2. Acceptance 3. Certainty 4. Consideration 5. Intention to create legal relations. During pre contractual negotiations it is commonplace that a letter of offer and acceptance is executed by the parties.

The parties reach agreement upon terms of a contractual nature and may also agree that the subject matter of their negotiation is to be dealt with by a formal contract. At this point the agreement reached may belong to any of three cases. (1) It may be one in which the parties have reached finality in arranging all the terms of their bargain and intend to be immediately bound to the performance of those terms, but at the same time propose to have the terms restated in a form which will be fuller or more precise but not different in effect. In cases falling within (1) the parties,

In cases falling within (2) the parties have also reached finality in negotiating the terms of their bargain, and are immediately bound, but the obligation to perform the contract is postponed until the execution of the formal document. In carrying out specific performance of such a contract the first step is the ordering of the settlement and execution of a formal contract. (3) The case may be one in which the intention of the parties is not to make a concluded bargain at all, unless and until they execute a formal contract. Agreements falling into cases (1) and (2) have numerous drawbacks especially for the purchaser. An error in an offer and acceptance document can render you liable for extra stamp duty if the wrong purchasing entity is named in the contract. We recommend that you take experienced professional advice prior to signing on the dotted line.

NRAS &management rights what does it mean? FRANK HIGGINSON - HYNES LAWYERS Many resident managers would recall the times when housing affordability was a real (and political) issue. It is not a political issue anymore, but we are now starting to live with the legacies of what that political pressure produced. One of the results of that the Residential Tenancies and Rooming Accommodation Act was amended to require landlords to give at least two months’ notice of termination of a tenancy while tenants 48 RESORTBROKERS.COM.AU

could terminate a tenancy on two weeks notice. This isn’t so fair in a soft rental market, but it remains the law. Another legacy was the creation of the National Rental Affordability Scheme. If you google ‘NRAS’ you will find a plethora of information online about what it means along with multiple ads for sales of NRAS properties. In the very simplest of terms, if: • a new unit is NRAS approved; and

• t he owner of the unit rents it to eligible tenants (based on income brackets set by the Federal government) at a discount to the current market rental of at least 20%; then, that owner will receive generous tax rebates/ offsets from both the federal and state government at the end of every financial year. These incentives are increased annually by reference to a generous index.

The rebates will end up being well more than the loss of the rental over the course of the 12 months. The scheme is for a decade, so the relatively better returns for investors are substantial. Anecdotally, it appears that NRAS approved units are what the investment market is currently preferring to buy ahead of non NRAS units. In a slow sales market it means developers are seeking NRAS approvals for units in their developments. This all has implications for management rights. The perfect management rights letting pool has no common ownership of lots (other than perhaps two or so units) or common influence over lot owners (such as an investment club). NRAS certainly changes that. We saw our first real NRAS issues arise for a client in May 2011 in relation to an off the plan purchase. Over the last 12 months as NRAS approved units have been built, there are now many complexes that have NRAS units in them. Going forward, if you are buying off the plan (particularly in Brisbane), it is more than likely that your management rights will include an NRAS component, particularly if the units are in the $500,000 or less price bracket. We will also start to see more resales of existing management rights complexes with NRAS units in them. It is normally not the developers themselves that obtain the NRAS approvals. They are usually obtained by an NRAS ‘provider’. These providers are a mix of not-for-profit and for-profit organisations and they all run their NRAS programs as they choose - which means differences in every model. Our experience has been that some of them are very good to work with. Some aren’t. There are various reasons for that, one of which is that the providers simply do not understand how NRAS and management rights need to co-exist. If we polish off the crystal ball for a minute, we think that NRAS units in years to come will remain more sought after than nonNRAS units for property investors. This is simply because of the better financial returns. If this is right, there should be less chance of NRAS units selling to owner occupiers. It follows that there should be more stability and continuity for a letting pool of NRAS units. Offsetting that is the additional compliance (and risk) that comes with managing NRAS units. You need to make sure you understand the additional work you are needed to do (including charging for it) and the additional approvals required for it. You also need to understand the provider and ensure your business relationship with that provider and the owners carries the necessary protections. Managed right (and that can be done) NRAS should not a problem in a management rights business.

Editorial

The best in the west ALEX COOK - RESORT BROKERS AUSTRALIA At Resort Brokers Australia, one of the most common strap lines we hear from our more ‘country based’ motel brokers is “coast for show, inland for dough”. The saying has been around for so long that nobody can deny it must have some validity. It doesn’t take a genius to work out what message this catchy little line is trying to get across. If you are looking at buying an accommodation business, and are keen to maximise the return on your investment and your cash-flow, it’s worth considering some locations away from Australia’s world famous coastlines. The numbers speak for themselves. Whether you’re looking to a purchase a passive freehold investment, a freehold going concern business or a leasehold, the industry standard returns on investment will be far superior in more remote country based towns. For example, whereas you would typically expect to see a 28% 30% return on a motel lease in a major city or coastal town, if you travelled a few hours west and beyond, you will find opportunities with returns in the 40% 50% range (and better). With freehold investments, the returns will jump from 9% - 10% up to 12% - 14%, and with going concerns, the returns will jump from 14% 16% up to 18% - 22%. Now, some people would argue that opting for a country town as opposed to a more populated hub will have a detrimental effect on your lifestyle. Resort Brokers very own country town specialist, Lindsay Cooper, has a different attitude. “When you buy a motel, you’re working the business day-to-day. Sure, you get some down-time and it’s very rewarding, but essentially it’s a 7-day a week job. If you’re going to spend the vast majority of your time in the motel, you may as well choose one where you can make the most money you possibly can”. Company MD Ian Crooks elaborates on this further. “Time-off when you’re running a motel isn’t taking a couple days over the weekend. Time-off when you’re running a motel means taking a well-earned 1 – 2 week break every 3 months”. He points out that managers running more remote motels are usually so far better off in financial terms that they can really make the most

of their holiday. “The income compared to debt servicing is so much more favourable that they often don’t know how to spend all their cash”. He explains that they can afford to fly all over Australia to catch up with family, and can often take several overseas holidays each. Remember, it’s not just about having enough money to get away; it’s about having enough money to pay for relief staff. Ian goes on to explain how the ability to take regular, relaxing, rejuvenating holidays is one of the most important factors in successful motel management. “You become so involved in your business that if you don’t get away, it’s very easy to burn yourself out”. So in reality, opting for a motel in a more remote area and subsequently having more disposable income can actually be a benefit to your lifestyle. Ian also adds that the social aspect of living in country towns can have a really positive impact on quality of life. “No disrespect to city people (after all, I am one), but you meet incredibly genuine, honest and reliable people out in the country. Smaller communities bread closer relationships. If you spend a few years in a country town I guarantee you’ll make friends for life. They’re also great, safe places to bring up children”. So, before you dismiss an offering simply because you haven’t heard of the location, take a bit longer to look at the return. You might just find you end up earning an income you never dreamed possible. One stand out example is The Quilpie Motor Inn, listed by Lindsay Cooper. With a net profit of $342,000, you’ll pick up the lease for $450,000. That’s a 77% return. Just think, with a 50% lend ratio you could pay off your entire debt in 1 year and still pay yourself a good salary in the meantime. Other stand out opportunities in this month’s Informer include the Augathella Palms, showing over 60% return on the leasehold and over 30% on the going concern, and the Summit Backpackers, showing whopping 22.5% return on the freehold investment. That’s a pretty good return for doing nothing. Keep your eye out on our website; there are some absolute gems if you look a bit further afield. RESORTBROKERS.COM.AU 49

Editorial

One door closes, another one opens BY K.INKY - RESORT BROKERS AUSTRALIA Workers with once-in-a-lifetime redundancy pay-outs, cashed-up miners and people seeking a new direction in life are expected to jumpstart Australia’s next big boom in motel and management rights sales, as they turn their backs on previous careers and explore the possibility of running their own business. Many workers would prefer to look to fresh pastures, rather than fight for the limited jobs available in their traditional sectors. Resort Brokers Australia founder Ian Crooks has seen this before. “Back in the last big recession in the early 90’s it quickly became a motel and management rights heyday. There were lots of redundancy packages around driving a variety of people to buy into accommodation businesses” he said. “We’re looking at a repeat of that now” There are many people exploring their options; not just those made redundant but those who have felt the negative impact of the GFC on their superannuation, those looking for a complete sea-change and those simply looking to take control of their own destiny by starting their own business. For many who fall into this category, motels and management rights opportunities can be particularly attractive. Most people in the work force already possess the skills required to operate an accommodation business successfully. Most important is being a people person with an openminded attitude towards people from all walks of life. A basic level of administration and computer competency is required, but this can be learnt with bit of patience and dedication. For the most part, motel and management rights businesses are usually preestablished, with a clear and quantifiable trading history. Typically, there is a decent hand over period between the vendor and the purchaser. All purchases will be subject to stringent due diligence, so it should always be clear what a purchaser is getting into. Almost all opportunities offer a home and business rolled into one, making the transition from a ‘previous life’ to a ‘new life’ relatively straight forward. In a nutshell, assuming the right process is followed and the motivations are correct, there is very little left to chance. As an interesting case study, we recently spoke with two young couples living in Rockhampton who have successfully made the move from the mines into motel ownership. Jason and Ang Horn, who’s two young children Kirby and Erin are aged 3 and 1 respectively, have operated the Mid City 50 RESORTBROKERS.COM.AU

Motor Inn for the last 16 months. They describe themselves as unabashed capitalists; hardworking and entrepreneurial, they always knew they wanted their own business. Prior to this, they had both held down good jobs, picking up skills they still use today. Jason had worked in the mines for 13 years; the first 9 as an operator, then a final 4 years as a pit supervisor. Ang’s background is as a site administrator; initially for Brambles Industrial Services, later Anglo – American in Dawson, where she spent 7 years. The main driving factor behind the Horn’s decision to purchase the motel was a strong desire to redress that all-important work/life balance. In simple terms, they just weren’t getting enough time with the kids. Indeed, this is a very common complaint about life in the mines; the shifts patterns are long and onerous and generally do not fit in well with a normal family routine. The wives end up feeling that they are raising the kids alone, the fathers feel that they are missing out and the family suffers. They did their homework well, researching heavily and drawing up a list of important criteria that would shape their search for the right property. In order to fit their lifestyle and ambitions they decided that their motel should have no restaurant, that 20-30 units was a sufficient as a starting point, that good living conditions were essential, that a length lease was required for security. Importantly, they also looked for some potential to improve the business through a more professional approach and by giving excellent customer service. As is often critical when embarking on a husband and wife operated business, Jason and Ang were clear in setting out their individual roles. Jason runs the housekeeping, makes the breakfasts and does any general maintenance work. Ang does the marketing and book-keeping. Front of house duties are shared equally between them. For them, this has proven to be a winning formula. When combined with hard work, commitment to the business, good communication and a jointdecision making process, success was always inevitable. Financially, the business is performing above and beyond the couple’s expectations and the outlook moving forward is positive. When asked what the future holds, Ang tells me that “we are definitely staying in the industry”. The main challenge they face is to get some time away from the business. To this end, they have employed a receptionist for a couple of hours a day and have locked in a leave period every 3 months. The skills they acquired in past jobs

are now being applied in a new and exciting industry and they are rapidly becoming very adept operators. Another couple excited to be first time moteliers are Andrew and Andrea Shaw, owners of the Cosmopolitan Motel and Serviced Apartments in Rockhampton. Their property offers 22 motel units and 14 apartments for more long-term guests. Very much like the Horn’s, their choice was based around giving them more time to spend with their children. They also have friends in the business who were able to provide some valuable advice. Nonetheless, it is clear from the outset that they had the skills to run a profitable business. Andrea is the everfriendly front woman; she knows her guests by first name and the long stayers appreciate the interest in their day-to-day affairs. Having worked as a P.A. in a previous life, she is more than at home in the office. Andrew is a knock-about-bloke originally from the bush who had been a drive-in driveout miner for 15 years. Based in Yeppoon, he worked a 10 days on / 4 days off roster. Having to constantly adjust between 12 hour day and night shifts, the job was both physically and mentally demanding. Miners and men working away from home make up a large proportion of The Cosmopolitan’s clientele. Andrew and Andrea feel they understand the needs of their guests and go out of their way to create a ‘home away from home’. The have developed a well-used social area around the pool with a pool table and BBQ. “I know these blokes because I used to one of them. At the end of the day, all you really want to do is have a cold beer and have a chat…like at home” Andrew explains. The empathy they have with their guests will undoubtedly keep them coming back for more. With repeat business driving occupancy along nicely, this appears to be working already. Each operator brings their own unique personality, life experiences, and ideas to their business. If this is combined with a positive, can-do attitude, this can only be a good thing. As already suggested, the most important thing in this business is people skills. When guests pull up for a night’s stay, it’s amazing how important it is to be made to feel welcome. If you can give your guests this, you’re halfway to being a successful operator. The husband and wife teams mentioned above are just 2 examples of the many success stories we come across. If you’re considering a change in direction into the accommodation industry, don’t underestimate yourself….you might just find out that you’re a natural.

Opened in 2007, this architecturally stunning building is already demonstrating net returns of over $333,000 and with a major shortage of high quality accommodation in the area, it will continue to perform and grow well into the future. The resort is only 6 years old; it is in the early stages of a growth cycle, and has the potential to gain a number of further apartments in the letting pool. This resort is 4.5 star in both facilities and apartment fit out and features a large hotel style foyer. The luxurious apartments are self-contained and feature spa bath,

Upmarket management rights

GREAT SUNSHINE COAST LOCATION

air-conditioning, fully equipped kitchen including dishwasher and ice dispensing fridge, laundry and plasma TV. • Ground floor 3 bedroom, 2 bathroom managers residence • Huge growth potential • No set hours in agreements • 19 years remaining on agreements

ARCHITECTURAL OFF THE PLAN MANAGEMENT RIGHTS

Steve Campbell EXCLUSIVE LISTING Mobile: 0407 220 668 Email: stevecampbell@resortbrokers.com.au

REF: MR002147

Glenn Millar EXCLUSIVE AGENT Mobile: 0412 277 804 Brisbane office: (07) 3878 3999 Email: glennmillar@resortbrokers.com.au

REF: MR002087

First class business only in Nundah Nett profit: $147,000 PRICE: $550,000

Nett profit: $333,754 PRICE: $2,385,520

Situated just 8km from Brisbane’s CBD, Park Vue is perfectly located. Designed by one of Queensland’s finest award winning architects, each apartment has an emphasis on urban living, with interior fitouts that are both contemporary and timeless in style.

• 54 units in the complex • Projections based on 46 in the letting pool • 25 year agreements • Body Corp Remuneration $54,000 • No requirement to live on site • Facilities include pool and BBQ area • Perfectly located amongst the retail and dining delights of Nundah Village, Toombul Centro and Clayfield • Construction commencing in February 2013, settlement January 2014

Seldom do opportunities present themselves where the business is not tied to a unit in the complex. Be quick to secure this fantastic opportunity! RESORTBROKERS.COM.AU 51

This tranquil near new complex consists of sixty-four units with majority of which are in the letting pool. This fifty-five plus community has a fantastic community centre with full service kitchen including every appliance one could desire. The 1 bedroom units (in 2 unit blocks) make for a strong rental demand. Very good body corporate salary considering the workload. On the accommodation module with very good tenure on the term. This easily run business is showing over 23% return on the overall investment. The vendors are very motivated!

Fantastic 55+ complex showing 23.4% ROI EXTREMELY MOTIVATED VENDORS • This near new sixty four unit complex is beautifully designed and in very tranquil surroundings • All 60 units in the letting pool are 1 bed meaning there’s always a strong rental demand • On the accommodation module with 18 years on the term • Very good body corporate salary for the workload at $108K pa increasing by CPI. • Cooking of a hot lunch for 20-25 people - it can easily be outsourced with the current cook keen to stay

In desirable New Farm - 20% return

CRUISY LIFESTYLE - ABILITY TO WORK FROM ANYWHERE Nett profit: $178,457 PRICE: $875,000

Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

REF: LH002168 52 RESORTBROKERS.COM.AU

This is a marvellous opportunity to purchase an easily run business in ever popular New Farm. This truly is a dream to run with operating hours only between 7.30am– 12.30pm. This beautiful Queenslander consists of 14 rooms with a mix of single and double rooms. No need to live on site as your clientele is majority young professionals. Surrounded by a smorgasbord of eateries, super-chic cafes, bars and entertainment precincts. It is also within walking distance to the award

Nett profit: $150,000 PRICE: $650,000

Tim Crooks EXCLUSIVE AGENT Mobile: 0422 208 450 Brisbane office: (07) 3878 3999 Email: timcrooks@resortbrokers.com.au

REF: MR002127

winning Emporium, James Street retail area. Completely renovated with nothing to do to with a light and airy office. The beautiful polished wooden floors flow into the breezy deck, ideal for zoning out on your laptop and reading a book. • Swimming pool • Brand new bed linen, flat screens and WI FI • Great tenure with 22 years on the lease • Quiet inner-city location in trendy New Farm • On site laundry for guests (all cleaning of linen is out sourced) • Fantastic weekend manager, keen to stay on • Good upside with tariffs increases and demand for short term accommodation increasing all the time

Large management rights in Eagleby

If you are looking for a great income and a manageable work load and want to live in a beautiful residence that is large and finished to a high standard, then look no further. This complex is immaculately presented and consists of 103, 3 bedroom townhouses of which 98 are in the letting pool. The net income at $329,600 and growing shows the potential of this property. It was built in 2007 and is located the South Brisbane suburb of Eagleby with easy access to the Gold Coast and Brisbane. There are no set office hours so you can easily get away for that game of golf or to go fishing!

BIG NETT INCOME

• Large Net income • $110,000 body corporate remuneration • 2 hours per day caretaking • 20 years left on the agreements • No set office hours • Immaculate managers residence • Great body corporate committee • You can live off site and rent out the managers unit if required

ENTRY LEVEL FREEHOLD MOTEL

Jim Chapman EXCLUSIVE AGENT Mobile: 0413 444 782 Melbourne office: (03) 9347 3100 Email: jimchapman@resortbrokers.com.au

REF: FH002167

David Janett Mobile: 0404 204 672 Brisbane office: (07) 3878 3999 Email: davidjanett@resortbrokers.com.au

REF: MR002106

Rush in, its worth the effort Nett profit: $47,940 Turnover: $92,525 PRICE: $ 530,000 plus sav

Nett profit: $329,600 PRICE: $2,150,000

Quite simply a great opportunity to secure a smart motel freehold and business in a rural town some 160 kms north east of Melbourne. This solid brick 8 unit 3 star motel provides a 3 bedroom fully self contained owners residence, licenced restaurant (used for groups/functions only), in-ground solar heated pool, BBQ large shed and additional land for further development.

• Owners residence provides 3 bedrooms with built in robes, 2 bathrooms, large kitchen, lounge/dining, laundry and balcony • Facilities include in-ground solar heated pool, BBQ and substantial storage shed with mezzanine level and 3 phase power • Total land area 3,010 sq. mts. (Area available for future expansion) • Licenced restaurant (used for groups/ meeting/ functions only) • With no near competition this property would ideally suit a person seeking an entry level freehold • Would benefit from listing on web-based booking sites and a web-page RESORTBROKERS.COM.AU 53

beautiful leasehold motel consisting of 17 x 4 star AAA rooms. It boasts a larger than average 3 bedroom, 2 bathrooms (1 ensuite) manager’s unit with a massive lounge and combined dining room and kitchen. The unit is attached to the reception and restaurant which means easy access and operation. 21.5 years remain on the lease of this immaculately kept motel. The property has highway frontage right in the middle of town, and shows strong occupancy and tariffs. It is currently run by a husband and wife team with casual cleaners. The Bushranger Motor Inn offers luxury ground floor rooms in the heart of the historic township of Uralla. All rooms have split system air-conditioning and free AUSTAR. The property also includes the beautiful heritage listed Stokers Restaurant and Bar, circa 1864, with welcoming log fires. You have got to try the hearty breakfasts. All town amenities are within 200 metres. Come and experience everything you would expect from a 4 star property.

54 RESORTBROKERS.COM.AU

Beautiful 4 star property with highway frontage SUPERB LEASEHOLD IN NEW ENGLAND REGION • 17 x 4 star AAA motel rooms • 21.5 years to run on the lease • Huge 3 bedroom, 2 bathrooms manager’s quarters • 45 seat restaurant - equates to only 10 % of turnover, so huge upside • Motel is 14 years young • Town centre positioning with full highway frontage • Healthy tariffs • Half way between Sydney and Brisbane

Lindsay Cooper EXCLUSIVE AGENT Mobile: 0418 711 047 Brisbane office: (07) 3878 3999 Email: lindsaycooper@resortbrokers.com.au

This is a must inspect property in lovely country NSW town!

Nett profit: $132,000 Turnover: $475,000 PRICE: $425,000 REF: LH002088

Editorial

GST Update for Management Rights Operators TONY ROSSITER - HOLMANS ACCOUNTANTS Qantas Airways Limited v Commission of Taxation Earlier this year I published an article advising that business operators in the Accommodation Industry – Management Rights, Hotels, Motels and Caravan Parks – may be exempt from paying GST on cancellation fees, and that GST refunds from the Australian Taxation Office may be forthcoming by amending prior BAS returns. This information pertained to a Federal Court decision in the case of Qantas Airways Limited v Commission of Taxation [2011] FCAFC 113. On Tuesday 25 September 2012, the High Court of Australia ruled that Qantas will have to pay the Australian Taxation Office (ATO) over $34 million in GST it collected from passengers who booked tickets but then failed to turn up for their flights. In this landmark ruling, the High Court of Australia determined Qantas had still provided a service to those customers and therefore owed the ATO the outstanding GST. The ATO claimed Qantas (and its budget subsidiary Jetstar) owed $26.6 million in GST collected on unused tickets, and that the Flying Kangaroo owed a further $7.6 million on fares for which no refunds were ever claimed. Qantas said that as it never actually provided the flights to those particular passengers, it did not owe the tax to the ATO. But the ATO, whose claim related to GST collected in the first eight years of the GST legislation, successfully argued the airline had provided a service by keeping the fares for its customers.

“Flights were sold and bookings taken on the basis that Qantas would use its best endeavours to carry the passenger and baggage” the judgment says. “Consequently, even if the passenger did not actually travel, there was a taxable supply incurring GST liability.” That meant Qantas had to hand over the tax passengers paid. Qantas originally appealed to the Federal Court when the ATO demanded GST payment, and it ruled in favour of Qantas; however the Taxation Commissioner launched another appeal to the High Court, leading to the landmark decision. It appears that this may not be the end of the matter, with Qantas considering further appeal options. So at this stage, for Management Rights operators, it’s business as usual (so far as GST on non-refundable booking fees is concerned). We will, of course, keep you abreast of any further developments. Travel Agents’ Commission, GST and Management Rights Many Management Rights operators accept reservations from on-line accommodation reservation agencies, predominantly based within Australia. However, not all on-line accommodation reservation agencies are Australian-based – Booking.com is based in Amsterdam, the Netherlands – adding confusion to the manner in which GST is treated. Booking.com operates as a “travel agent” as defined by the Australian Taxation Office.

The case could have implications for other businesses that charge GST on non-refundable services, such as accommodation providers, tour companies and other transport operators.

Travel Agents supply services to domestic operators. These services include arranging the supply of “land product” to a traveller. For this service they receive commission from the domestic operator who is the supplier of the land product to the traveller.

The High Court ruled by majority that Qantas made a “taxable supply” whenever it received a booking.

Note: The term “Travel Agent” is not limited to registered travel agents, but can cover other tourism enterprises such as airlines,

hotels, management rights operators and professional conference organisers – who arrange domestic and overseas travel on behalf of another person or persons. Note: The term “land product” includes accommodation, transport other than air transport (such as travel by train, car or sea), car hire, tickets to exhibitions or entertainment events and other similar tourism services other than air transport. Issue How is commission treated for GST purposes as it relates to commission paid to an overseas travel agent from a domestic operator in respect of an Australian travel package? Decision Where an overseas land product provider supplies Australian land product direct to a domestic operator, that supply is generally not a taxable supply, depending on the particular circumstances. Where the domestic operator uses the services of an overseas travel agent to arrange the sale of the Australian land product there is a supply from the travel agent to the domestic operator. This supply is GST-free under Section 38-360 because the overseas travel agent makes the supply in the course of its enterprise which takes place outside Australia. For those in the Accommodation Industry, the most common example is Booking.com. Booking.com has experienced a meteoric rise in popularity in recent times. You will note that invoices issued by Booking.com do not include GST and you should not be claiming GST on these payments. The information, recommendations, opinions or conclusions provided above are generic in nature and do not express individual advice. You should always consult your professional representatives before taking any action. Holmans welcome any queries you may have in relation to the above matters. RESORTBROKERS.COM.AU 55

Industry Specialists

THE MANAGEMENT RIGHTS LAWYERS Servicing resident unit managers throughout Queensland and New South Wales Brisbane 07 3007 3777 Level 15, 167 Eagle Street Brisbane Q 4000

[

Gold Coast 07 3007 3777 Corporate House, 155 Varsity Pde, Varsity Lake Q 4227

RESORT MANAGEMENT ADVISORS

SPECIALISTS IN: Review of operations | Pre-opening planning Owner representation | Operations management For professional assistance contact: tjshort@attglobal.net or phone 0413 752 717

Valuations and Property Advice Specialists in Accommodation Properties and Businesses Prepurchase advice, preparing for sale, rent assessment, and valuation panellist for a wide range of banks.

Owen Barbeler (07) 3620 7900

Owen Barbeler

Brisbane T: 07 3620 7900 E: owen.barbeler@m3propert

Management rights experts

Associate Director

Getting the right legal advice is critical - don’t put your management rights investment at risk. Frank Higginson, Sharon Flood and the team at Hynes Lawyers can assist you with all your management rights needs. Frank Higginson frank.higginson@ hyneslawyers.com.au

Sharon Flood sharon.flood@ hyneslawyers.com.au Qualifications

Owen has worked in the valuation industry valuations.

Owen has experience across many types of accommodation properties including hotels, motels, resorts, student accommodation, management rights and affordable housing. He also has expertise in the valuation of service stations, and has provided valuation advice to oil companies, major fuel retailers and distributors (including large portfolio valuations), along with single and multi-site owners. Owen has valued many unique and specialised properties which have included marina, education and airport assets. He undertakes valuations of freehold, leasehold and going concern assets in all parts of Queensland and interstate. Owen prepares valuations and advice for first mortgage security, financial reporting, acquisition and disposal purposes, and also assists owners of specialised properties in matters such as development feasibility, rent assessments, resumption compensation and disputes.

Buying or selling Hotels Caravan Parks, Motels, Management Rights? Call (07) 3220 1144 or email@hillhouse.com.au

www.hillhouse.com.au

> Bachelor of Business

since 2002 and specialises in going concern Subscribe to our newsletter at marketing@hyneslawyers.com.au. Management (Real E

Development), Unive Queensland

> Associate of the Aus Property Institute (AA

> Certified Practising V

> Certified Practising V (Business)

> Registered Valuer, Qu > Registered Valuer, New South Wales

m3property.c

 Specialist Business Advisor to the Accommodation Industry  Specialist Business Advisor to the Accommodation Industry  Verifications Reports  Verifications Reports  Trust Account Audits  Trust Account Audits  Business Services  Business Services  Taxation Specialist Business Advisor to the  Taxation  SpecialistAccommodation Business Advisor to the Accommodation Industry Industry  Accounting Verifications Accounting Reports Verifications Reports | Trust Account Audits | Business  Benchmarking Benchmarking Trust Account Audits

Services | Taxation Accounting | Benchmarking

Sunshine Coast Brisbane/Gold Coast  Business Services Sunshine Coast JohnCoast Siemon Brisbane/Gold Sam Hodgetts John Siemon Sam(07) Hodgetts (07) 5474 8955  Taxation 3421 3421 (07) 5474 8955 (07) 3421 3421  Accounting Email: cpa@mcadamsiemon.com.au Email: www.mcadamsiemon.com.au cpa@mcadamsiemon.com.au  Benchmarking www.mcadamsiemon.com.au ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’ Sunshine Coast Brisbane/Gold Coast ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’ John Siemon Sam Hodgetts (07) 5474 8955 (07) 3421 3421 Email: cpa@mcadamsiemon.com.au www.mcadamsiemon.com.au ‘ALL PROFESSIONAL FEES QUOTED UP FRONT’

RESORTBROKERS.COM.AU 56

Specialising in Hotels & Motels Management Rights Caravan Parks Child Care Centres

Service Stations Residential Development Industrial

Looking to reach the accommodation and tourism industry? Why not advertise here

Commercial & Retail

BRISBANE P 07 3226 0000 F 07 3226 0099 E mailbris@lmw.com.au | www.landmarkwhite.com.au

You will see a range of industry specialists are advertising in our widely 100 read Informer. 95

Circulation 75 7,500 - mailed hard copies 15,350 - sent digitally 100

If25you would like a company advert on 95 this page please contact: 5 75

Carla Cook: 0467 600 611 0 carlacook@resortbrokers.com.au 25 5 0

Resort Brokers Australia would like to thank you all for your on going support this year. We hope you all have a wonderful Christmas and a prosperous 2013! Enclosed is a little present to help you plan your upcoming year

57 RESORTBROKERS.COM.AU

The Original and still No. 1

Our Exclusive Listings

You won’t see these fantastic properties anywhere else

DESCRIPTION

PROPERTY TYPE

LOCATION

UNITS

PERM/ TEMP

NETT

PRICE

Apartments at Glen Isla on the Isle

Motel L/H

Cowes

Temp

$59,042

$200,000

Bundaberg corporate motel leasehold

Motel L/H

Bundaberg

Temp

$274,348

$960,000

Luxury holiday complex

Management Rights

Maroochydoore

Holiday

$333,754

$2,385,520

First class location. First class permanent building

Management Rights

Bribie Island

Perm

$100,236

$750,000

60% ROI - Western Queensland opportunity

Motel L/H

Augathella

Temp

$176,000

$290,000

Perfect First Time Motel

Motel F/H

Quenbeyan

Temp

$166,594

$1,150,000

Leasehold - 41% return in Bendigo

Motel L/H

Bendigo

Temp

$310,264

$765,000

The only business prospering from the high ozzie dollar

Backpacker L/H

Bundaberg

Temp

$237,000

$630,000

4 star leasehold in country NSW

Motel L/H

Uralla

Temp

$132,208

$425,000

Immaculate 4 star leasehold motel in Cairns

Motel L/H

Cairns

Temp

$130,000

$425,000

Motel lease in Parkhurst

Motel L/H

Parkhurst

Temp

$239,847

$790,000

Capital City CBD Leasehold opportunity

Motel L/H

Adelaide

Temp

$749,868

$2,800,000

Leasehold opportunity in large regional Victorian city

Motel L/H

Sale

Temp

$387,856

$1,320,000

Award winning corporate motel + new 30 year lease

Motel L/H

Warrnambol

Temp

$230,948

$860,000

30 year lease on a brand new Luxury apartment complex

Motel L/H

Copacabana

Temp

$250,000

$350,000

5 yrs old & in booming mining town, can’t get better than this!

Motel L/H

Dysart

Temp

$1,156,202 $3,850,000

Eco Tourism opportunity North Queensland

Motel F/H

Townsville

Temp

N/A

$1,600,000

Townsville CBD permanent Complex

Management Rights

Townsville

Perm

$140,000

$560,000

4 star apartment & conference resort snowy mountains

Management Rights

Jindabyne

120

Holiday

$2,995,000

Your ‘Gateway’ To A Solid Freehold Country Motel

Motel F/H

Kyogle

Temp

$85,340

$625,000

Elegant Blue Mountains Leasehold for only $150k

Motel L/H

Leura

Temp

$150,000

Modern high netting permanent $303K nett

Management Rights

Brisbane

103

PERM

$330,000

$2,150,000

A real coastal opportunity

Motel L/H

Cardwell

Temp

$250,000

Melbourne residential tower - caretaking / management

Management Rights

Melbourne

152

Perm

$168,437

$575,000

Easy Workload in Calamvale

Management Rights

Brisbane

Perm

$86,553

$785,000

Easily Run Mediterranean Management Right - Mermaid Beach

Management Rights

Mermaid Beach

Holiday

$113,654

$945,000

Low rent high profit -this one will set you up

Motel L/H

Ingham

Temp

$205,000

$675,000

In the heart of Brisbane – Ideal for one person

Management Rights

Brisbane

Perm

$132,290

$1,158,500

Luxury on the beach - literally!

Management Rights

Woorum

Holiday

$326,430

$2,152,150

Best of both worlds! 38 site caravan park with a 23 room motel

Motel F/H

Kempsey

Temp

$423,585

$2,900,000

First class business only off the plan opportunity!

Management Rights

Brisbane

Perm

$147,216

$550,000

Fantastic Pottsville Beach Motel - Nth Coast NSW

Management Rights

Pottsville Beach 24

Temp

$182,000

$635,000

Fantastic leasehold Motel, North Queensland City

Motel F/H

Townsville

Temp

$574,951

$3,600,000

Earn $15,000 per month Body Corporate Salary

Management Rights

Cairns

Mixed

$230,000

$1,375,000

Leasehold motel in popular Rockhampton

Motel L/H

Rockhampton

Temp

$459,039

$1,500,000

Rare business only & caretaking only - be quick!

Management Rights

Brassall

124

Perm

$122,600

$530,000

Leasehold motel showing a massive 49% return!!

Motel F/H

Charters Towers 30

Temp

$177,000

$360,000

Fantastic 55+ complex showing a 23.4% return

Management Rights

Brisbane

Perm

$150,000

$650,000

Trading it’s head off! 17.5% ROI - freehold in Roma

Motel F/H

Wallumbilla

Temp

$401,000

$2,290,000

Melbourne residential management rights

Management Rights

Melbourne

Perm

$150,370

$910,000

Waterfront complex in Townsville

Management Rights

Townsville

Temp

$502,000

$2,650,000

Redundant? Buy a top job!

Management Rights

Rockhampton

Mixed

$227,095

$1,200,000

58 RESORTBROKERS.COM.AU

Trade Page GOT A PROPERTY & WILLING TO TRADE? WELCOME TO OUR PAGE ALL ABOUT TRADES

WATERFRONT MANAGEMENT RIGHTS – JUST $2.5M A real opportunity arises for a passive investor to buy this outstanding business making 575k per annum after management. Vendor will trade a home or unit on the Gold Coast up to $1M.

MAIN BEACH LUXURY PENTHOUSE FOR EXCHANGE Regarded as the best residential complex in Main Beach Liberty Pacific Penthouse owner will exchange for income producing commercial property under management. Keys Realty at Main Beach in conjunction with Resort Brokers

Ian Crooks - 0411 171 648 | Jim Keys 0418 753 595

Lis Jus te t d

Ian Crooks - 0411 171 648

GOLD COAST PROPERTIES TO TRADE PLUS CASH!! Two Gold Coast properties One @ Main beach and the other @ Budds Beach $2.4m plus cash to $3m to $4m, for income producing commercial property under management. (or low cost housing or unit development site ready to start!!) Keys Realty at Main Beach in conjunction with Resort Brokers

1 WILL TRADE HOUSE OR APARTMENT TO VALUE OF $800K Seller is offering massive sub-penthouse in Main Beach with large North and South facing views of the entire Gold Coast offered for sale $ $2m plus. Contessa is situated on over 2 acres of manicured grounds. Keys Realty at Main Beach in conjunction with Resort Brokers

MAIN BEACH PENTHOUSE PLUS CASH!! An opportunity presents itself to take this very modern fully renovated 2 level penthouse as part payment for your income producing commercial property. Spacious 442m2 offering a choice of indoor and outdoor entertaining lifestyles. (Penthouse value is $2.65m + cash for your property). Keys Realty at Main Beach in conjunction with Resort Brokers

Ian Crooks - 0411 171 648 | Jim Keys 0418 753 595

WILL TRADE UP TO $2M AGAINST MOTEL OR MR Will Trade up to $2m against either a Motel or Management Rights. House details are as follows: Dual Family home with separate entries, large 1060m2 waterfront block Gold Coast and 5 bedroom, 3.5 bathrooms and 2 + car LUG. House value $875,000 Ian Dore - 0412 752 238

3 4

WILL CONSIDER TAKING PROPERTY AS PART PAYMENT Unique natural bush land up-market resort in south coast, NSW. 3 Bedroom manager’s residence. Has to be seen to appreciate the property & potential. Prime position close to town with very motivated vendor. Generous training period & some vendor finance Huge 100 acre block of land Price $2,500,000

GOLD COAST MANAGEMENT RIGHTS TRADE $1M FREEHOLD MOTEL - CONSIDER HOUSE TRADE ONLY Burleigh Heads management rights business Varsity Lakes 11 Cornell On offer - the freehold interest of an 18 unit motel, 2 Court $1,750,000 incl $400,000 managers 2 bedroom bedroomDual-Family owners’ accommodation, licensed 180° of Water Views! Super-Sized Home on Large 1060m2 Block restaurant unit Netting $283,157 and will trade to $1million or and in-ground pool. Recently refurbished through-out, A property of this type is a rare find in Varsity Lakes - 60 squares of dual-family living on a huge • Private grounds, pool & spa 1060m2 block with spectacular 180o water views. Just a stroll from Varsity College and the • Glass fencing along lakefront Vendor finance to $300,000. Sale Price: $1,750,000 | the current vendors are ready for their next challenge. commercial district, this cul de sac address is quiet and secure. An impressive portico entry opens to • 2-storey guest/granny flat fully renovated living areas, including a Euro-equipped kitchen with glorious lake views. An open fire • 5 living areas, 5 bedrooms They will consider all trades on houses only. Managers Unit: $400,000 | Net Profit: $283,157 warms the ground floor lounge while upstairs living areas link to the two-storey guest apartment • 3.5 bathrooms, keyless entry adjoining the double garage. Four bedrooms in the main home include an upstairs master suite with • Air conditioned throughout Turnover $750,000 | nett $460,000 | Price $2.35m dressing room and spa ensuite. • Close to schools & university

Russell Rogers - 0416 166 909

Ian Dore - 0412 752 238

Ian Dore - 0412 752 238 RESORTBROKERS.COM.AU 59

Auction

Thursday 4th Octob Venue: RW Broadbe View Saturday & Th Sam Guo 0423 064 sam.guo@raywhite Julia Kuo 0402 668 www.raywhitebroa Ray White Broadbe

Recently Sold “We have 102 Management Rights & Motels since the 15th January 2012”

FREEHOLD MOTEL BALLARAT, VIC

MANAGEMENT RIGHTS NERANG, QLD

INVESTMENT MOTEL AYR, QLD

LEASEHOLD MOTEL MOSSMAN, QLD

MANAGEMENT RIGHTS TOWNSVILLE, QLD

LEASEHOLD MOTEL MANAGEMENT RIGHTS KATOMBA, NSW GYMPIE

MANAGEMENT RIGHTS NOOSA HEADS, QLD

LEASEHOLD MOTEL GUNDEGAI, NSW

LEASEHOLD MOTEL DARRA, QLD

FREEHOLD MOTEL QUEANBEYAN, NSW

MANAGEMENT RIGHTS PELICAN WATERS, QLD

LEASEHOLD MOTEL TIN CAN BAY, NSW

60 RESORTBROKERS.COM.AU

Relief Managers DIRECTORY We have many more relief managers in our directory. Please contact us if you require a full list. Please note that this is a directory only. Resort Brokers Australia do not interview or qualify any of the managerâ&#x20AC;&#x2122;s below. Name: Delwyn and John Gane Mobile: 0421 987 462 Email: N/A Manager type: Motel Location: SE Qld / Central Qld

Name: Ray and Bev Hearn Mobile: 0429 420 826 Email: management@yourpark.com.au Manager type: Caravan Park Location: South Qld / Nth NSW

Name: Llew and Trisha Pointon Mobile: 0400 035 359 Email: llewp@tpg.com.au Manager type: Motel Location: Nationwide

Name: Steve and Pam McMullen Mobile: 0418 497 214 Email: sgpj.mcmullen@bigpond.com Manager type: Motel Location: Nth / Coastal NSW

Name: Graeme Fillipe and Deborah Wallace Mobile: 0427 512 751 Email: graemedeb@motelmanagers.com.au Manager type: Motel Location: South Qld / Nth NSW

Name: Simon and Anne Frost Mobile: 0433 921 029 Email: simon@serviceplease.com.au Manager type: Motel Location: Nationwide

Name: Phillip and Sharyn Stallman Mobile: 0428 931 589 Email: pjstal@bigpond.com Manager type: Motels, MR & CP Location: Nationwide

Name: Bob and Judy Sheppard Mobile: 0419 784 215 Email: bj.sheppard8@bigpond.com Manager type: N/A Location: NSW

Name: Sue and Hubert Rietberg Mobile: 0418 883 233 Email: sueandhugh@iinet.net.au Manager type: All properties Location: Brisbane / Sunshine & Gold Coast

Name: Lyne and Wayne Foster Mobile: 0437 217 621 Email: waynefos@dodo.com.au Manager type: Motels Location: Nth / Nth East NSW

Name: Chris and Carmel Moloney Mobile: 0400 483 291 Email: ccmoloney-315@hotmail.com Manager type: Motels Location: Nationwide & N.Z.

Name: Michael Hunter Mobile: 0439 950 900 Email: N/A Manager type: Motel Location: Qld

Name: Carol and Harry Turnbull Mobile: 0428 399 733 Email: N/A Manager type: N/A Location: Nationwide

Name: Peter and Julie Johnston Mobile: 0409 218 751 Email: N/A Manager type: Motel / MR Location: Qld

Name: Robyn and William Campbell Mobile: 0409 838 856 Email: rgcampbell@hotmail.com Manager type: N/A Location: Nationwide

Name: Louise and Siggy Dannell Mobile: 0408 901 927 Email: lsdannell@bigpond.com Manager type: All Location: East SA

Name: Paige Renshaw Mobile: 0438 847 941 Email: paigeandrea@hotmail.com Manager type: Management Rights Location: Nationwide

Name: Karla Harding Mobile: 0414 767 499 Email: bnbangel@fastmail.net Manager type: B&B / Guesthouses Location: Nationwide

Name: Sylvia and Gilbert De Michiel Mobile: 0419 204 773 Email: sylvia@anzacs.net Manager type: N/A Location: East Vic / Qld / NSW

Name: Gary and Robyn Loakes Mobile: 0408 798 352 Email: grl21@bigpond.com Manager type: All Location: Nationwide

Name: Scott Walters Mobile: 0488 726 888 Email: dougie.71@hotmail.com Manager type: Management Rights Location: Nationwide

Name: Tony and Dawn Davies Mobile: 0412 065 348 Email: dawn.tony@hotmail.com Manager type: Hotel / Motel / CP Location: West Qld

Name: Anastasia and Gus Johnson Mobile: 0408 021 303 Email: anastasiajohnson@bigpond.com Manager type: Resort Location: SE / NE Qld

Name: Jan and Allen Morton Mobile: 0417 529 129 Email: N/A Manager type: N/A Location: Sunshine Coast

Name: Christopher Hillman Mobile: 0488 550 005 Email: christopher.hillman@bigpond.com Manager type: Motels, MR, Resorts Location: Nationwide - Capital Cities

Name: Paul and Arlene Moore Mobile: 0404 855 711 Email: pfandammoore@live.com Manager type: Hotel / Motel / CP Location: Qld & NSW

Name: David and Belinda Gustafson Mobile: 0403 219 562 Email: gustafsondavid@hotmail.com Manager type: N/A Location: NSW / Qld

Name: Elisabeth Grimm Mobile: 0414 751 142 Email: yellowroses4me2222@yahoo.com.au Manager type: Management Rights Location: Gold Coast

Name: Greg and Linda McWhirter Mobile: 0409 882 803 Email: thamacz@octa4.com.au Manager type: Motels Location: Nationwide

Name: Sabrina Simmonite Mobile: 0410 926 221 Email: qldreliefmanagers@bigpond.com Manager type: Management Rights Location: Brisbane, Sunshine & Gold Coast RESORTBROKERS.COM.AU 61

Our team

‘We cover the country’

Ian Crooks

MANAGING DIRECTOR NATIONWIDE

David Janett

BROKER SOUTH & WEST BRISBANE

Alex Cook BROKER GOLD COAST

Russell Rogers

BROKER SOUTH COAST, NSW

Julie Davidson

NATIONAL TEAM MANAGER

62 RESORTBROKERS.COM.AU

Ian Dore

MANAGER & NATIONAL NEG NTH. NSW & GOLD COAST

Glenn Millar

BROKER SUNSHINE COAST

Lynn Booth BROKER CENTRAL QLD

Shane Wynhoven BROKER SYDNEY CBD, NSW

Sarah Wilkinson

OFFICE ADMINISTRATOR

Tim Crooks

BROKER CBD & SOUTH BRISBANE

Tyler Millar

BROKER SUNSHINE COAST

Len Booth

BROKER CENTRAL QLD

Jim Chapman BROKER NORTH EAST, VIC

Emma Krause

ACCOUNTS MANAGER

Steve Campbell

BROKER BRISBANE CBD & SURROUNDS

Lindsay Cooper BROKER WEST QLD & NTH NSW

Shane Mullins BROKER FAR NORTH QLD

Stuart Charles BROKER WEST, VIC

Dianne Atkinson

FINANCIAL CONTROLLER

Neville Littleton BROKER BRISBANE NORTH

Trudy Crooks

SALES MANAGER / BROKER GOLD COAST

Chris Rowe BROKER NORTH QLD

Tony Payne

BROKER SOUTH EAST, VIC

Carla Cook

MARKETING MANAGER

Directory NORTHERN TERRITORY

QUEENSLAND BRISBANE - HEAD OFFICE Telephone: Facsimile: Email: sales@resortbrokers.com.au

07 3878 3999 07 3878 1199

PO Box 5004, West End Qld 4101 Ian Crooks - Managing Director Trudy Crooks - Sales Manager

0411 171 648 0477 882 210

Management Rights Division Tim Crooks Neville Littleton Steve Campbell David Janett

0422 208 450 0407 727 194 0407 220 668 0404 204 672

Motel Division Ian Crooks Steve Campbell

0411 171 648 0407 220 668

CENTRAL WEST/ SOUTH WEST/ SOUTH EAST QLD Caravan Parks / Pubs/ Motels Division Lindsay Cooper 0418 711 047 07 5510 3900 07 5510 3111

Management Rights Division Ian Dore Alex Cook Trudy Crooks

0412 752 238 0467 600 610 0477 882 210

Motel Division Ian Dore

0412 752 238

SUNSHINE COAST Management Rights Division Glenn Millar Tyler Millar

0412 277 804 0411 271 761

CENTRAL QUEENSLAND A/h: 07 4155 6330 Facsimile: 07 4155 6440 Motel Division Len Booth

NEW SOUTH WALES Telephone: Facsimile: PO Box 78, Freshwater NSW 2069

362 Montague Road, West End Qld 4101

GOLD COAST Telephone: Facsimile:

Motels / Hotels / Caravan Parks / Management Rights Chris Rowe 0408 225 220

0438 139 422

02 9904 8224 02 9904 8867

NORTHERN NSW Motels/ Management Rights/ Hotels Division Ian Dore - Northern NSW 0412 752 238 CENTRAL/ NORTH WEST NSW Caravan Parks / Pubs/ Motels Division Lindsay Cooper

0418 711 047

SYDNEY CBD & GREATER SYDNEY & CENTRAL NSW Motels/ Backpackers/ Private Hotels Division Shane Wynhoven 0424 174 592 CENTRAL WEST NSW Motels/ Caravan Parks Division Jim McDonald

0433 143 308

SOUTH COAST, NSW Motels/ Caravan Parks Division Russell Rogers

0416 166 909

VICTORIA Telephone: 03 9347 3100 Facsimile: 03 9347 3111 PO Box 1100, Carlton VIC 3053 NORTH EAST VIC Motels/ Caravan Parks/ Management Rights Division Jim Chapman 0413 444 782 WEST VIC Motels/ Caravan Parks Division Stuart Charles

0458 588 472

SOUTH EAST VIC Motels/ Caravan Parks Division Tony Payne

0418 329 421

TASMANIA Motels/ Hotels/ Caravan Parks Division Jim Chapman

0413 444 782

FAR NORTH QUEENSLAND Motels / Hotels / Caravan Parks / Management Rights Shane Mullins 0447 185 001 NORTH QUEENSLAND Motels / Hotels / Caravan Parks / Management Rights Chris Rowe 0408 225 220

RESORTBROKERS.COM.AU 63

QUEENSLAND OFFICE PO Box 5004, West End, QLD 4101 (07) 3878 3999 NEW SOUTH WALES OFFICE PO Box 78, Freshwater, NSW 2096 (02) 9904 8224 VICTORIA OFFICE PO Box 1100, Carlton, VIC 3053 (03) 9347 3100 facebook.com.au/resortbrokersaustralia resortbrokers.com.au

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