1. Re-occurring revenues - there is money landing in your bank account while you are eating lunch on Christmas day.
2. If you already have a rent roll, you may be able to use your rent roll and the one you are buying as security to borrow 100% of the money for the acquisition.
3. It is highly likely it will be positively geared acquisition and add profit to bottom line from day one. Even after additional staff cost and loan repayments.
4. It is a wealth creating asset.
5. A real estate trainer said to me many years ago, "He or she who owns the listings owns the market". Owning a large rent roll gives you more ownership of the local market. Along with the reoccurring management income, your business will have the lion’s share of sales listings that come from your rent roll, further enhancing your businesses local profile. More for lease, for sale, and for auction boards, more VPA, more on-line presence. Simply just more!
6. If you own it long enough and you are over 55 when you sell you get considerable capital gains tax concessions, meaning you may not pay any capital gains at all on the sale. Imagine selling your business/rent roll for millions with little or no capital gains tax applicable.
Please note: The above is not intended to be financial advice and should not be relied upon for any purpose whatsoever. You should conduct your own enquiries and obtain your own independent legal, financial and taxation advice.
Comments