Buying the management rights to a business
Management rights can give the purchaser a lifestyle, and a good return on their investment.
This makes an ideal investment for those wanting a unique, relaxed lifestyle for both individuals and couples, particularly on the NSW South Coast. Most management rights apply to businesses such as motels and larger complexes.
Many of the duties include general maintenance of the premises and the rooms, cleaning, and servicing the apartments or the rooms. Through management rights, you would become the manager of the complex, and your management position would be part of the strata plan.
The entry capital required to get into management rights must include the real estate value of the unit to be purchased and the business component expressed as a multiplier of NP according to the local formula, which depends on location.
In (say) Noosa NP X up to 6 is not uncommon (due to location), whereas on the South Coast of NSW it is around 4 times.
Management rights give you more than a job – they give the right person a lifestyle, particularly on the NSW South Coast.