Welcome to 2019 – The Year of Opportunity

16/01/2019 by Rod Askew – RCA Business Brokers

WooHoo another year is here.

What will 2019 hold in store for us.

At the close of 2018, the banks had made it very clear that they wouldn’t be throwing money at management rights businesses and it was taking much longer to get loans across on most deals.

Will that change and will a new year bring new thinking on their part as contracts are sent to credit departments?

Only time will tell.

Perhaps the finance brokers out there can shed some light on their thoughts of where the Bank’s heads are at this year.

We closed 2018 with a bang and the settlement of Morgan Suites in South Brisbane, just 5 days before Christmas.

Terrific business with a nett income above the $1 million mark.

We will be referring to the sale of Morgan Suites as the miracle deal as there were no less than 7 different solicitors involved in the transaction.

The vendor’s solicitor, the purchaser’s solicitor, 3 separate bodies corporate with 3 different solicitors, the bank’s solicitor and the shop / office leasehold owner’s solicitor.

Miracle Deal.

That is not to say that solicitors complicate deals and make life difficult, just that 7 different legal opinions in the one deal is a first for me personally.

Interest in buying management rights is still high.

Again, the end of 2018 saw us receive an unprecedented level of enquiry for management rights and we desperately need more businesses to sell.

Enquiry for both off the plan and existing businesses has been extremely high, particularly where the nett income is over the $250,000 per year mark.

If any owners out there want to start 2019 by selling their management rights business, then we would love to hear from you and have the opportunity to offer your business to our ever growing list of buyers.

Melbourne continues to be in demand with experienced management rights owners looking for new frontiers, however getting developers down there, particularly their lawyers to accept the MLR concept can be very time consuming and tiring at times.

We have a faithful following of developers in Victoria who have incorporated management rights in several developments now and will continue to do so in the future.

Well, head down and let’s get stuck into 2019.

Please give us a call for a coffee or a chat about your business or the management rights business in general.

We would love to hear from you.

Have a great year.

Best regards

The RCA team.