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16/11/2009 -
Management Rights Valuation Method |
| Management Rights Valuation Method |
- The normal valuation method is not used as a set formula. The popularity and demand at the time establishes true value.
- The manager's unit has both residential and a commercial entitlement, quite often with an office, etc. Its market value usually exceeds the value of residential home units of similar style.
- Various prestige high rise complexes have sold for over five times the annual net income, with the current rate being about 4.0 to 5.2 times the net income. (Covering all QLD and NSW areas)
- Net income is usually equated at $4,000 - $6,000 per holiday unit, and approximately $1,000 - $1,500 per annum for permanent letting unit.
- Occupancy rates depend on location, size and style of buildings, etc.
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