Identifying the Right Business

Make your list of “must have’s”, but don’t have too many pre-conceived ideas when you start looking at properties. Keep an open mind and “take your blinkers off”. There are several variables that you come across in your early investigations.

• Freehold or Leasehold With leasehold properties, you need to be fully aware of all the lease conditions and make an assessment on the sustainability of the lease.

• The size of the property Whether you want a larger operation which can be run with staff or do you want a smaller operation where you do most of the work.

• Location Is there a particular area that you want or are you prepared to locate where the right property is.

• Restaurant Do you want a food and beverage operation or a bed and breakfast. Don’t be turned off buying a motel simply because it has a restaurant component that you are not comfortable with. There can be many advantages in providing food and beverage to your guests and there are many easily prepared food options available. If you don’t have a passion for hospitality we strongly suggest that you operate your restaurant for in-house guests only. This generally means that you will only open your restaurant Monday to Thursday nights to cater for your corporate clients.

• Owner’s residence This will be dependent upon the number of family members that will be with you.

• State of repair of the property Are you looking for a property and business that needs a substantial upgrade or one that is operating well and needs little in way of improvement.

• Financial return on your investment What level of income are you requiring from the property. Keep in mind that a massive advantage in operating a Motel or CVP, is that you live out of the property. The bulk of your living expenses (accommodation, electricity, telephone, motor vehicle, etc.) are part of accepted Business expenses.

Your first place to look for the right property is on our website. It allows you to search for properties with as little as one criteria or many, including Freehold or Leasehold Motel, Caravan Parks or Hotels for Sale, Price range, by State, a Specific Region or even just one town. For any properties that interest you simply select the ‘Email Me Further Details’ option a full Information Memorandum on the property.

We also offer an extended pictorial feature of the properties with our Property Slideshows. Feel free to telephone our Brokers and “pick their brains” on properties or the Industry in general.

Negotiating to Buy

When you have found the right property and you are confident that your Finance is in order, you will begin negotiations with your Broker to buy the property. Your Broker is experienced in these negotiations and will give you all the assistance you need.

Once you have an Offer to Purchase accepted by the owner, you will enter into a “Heads of Agreement” with the owner for the purchaseof the property. This document is not a legally binding a contract, and is used to draw up the Contracts for Sale. In Queensland transactions, the Broker can draw up the Contracts for Sale and send them through to the respective Lawyers. In other States, the owner’s Lawyer draws up the Contracts.

The process from offer and acceptance through to settlement can be a very prolonged and frustrating one, so you need to be patient. Having industry specialists working for you during this time can be a significant advantage. Financial due diligence can take two to three weeks, legal due diligence can be similar and finance approval these days is usually four to six weeks depending if a valuation is required.

First Buyers Information Booklet