The minimum amount of cash or equity in your house that you need to purchase management rights is approx $150,000.
A general rule to determine the purchase price of the complex is multiplying your cash input by 2.85 times. Example:
The size of the complex will be subject to there being sufficient income to repay your loans, general living costs and taxes.
The majority of financiers that specialise in management rights will lend between 60% – 75% of the purchase price of the complex. Example below on a purchase price of $1,100,000
Less min cash $400,000
The funding amount of $760,000 is generally broken up into 2 loans.
The 1st loan is based on 80% of the market value of the managers unit structured over 30 yrs or interest only
The balance of funding can be structured over the remaining term of the agreements with the body corporate. Interest only loans is sometimes available.
$320,000 Interest only = $1,550pm (Interest only)
$440,000 over 15 years = $3,830m (principal and interest)
$760,000 $5,380pm / $64,560pa
Interest rates will vary depending on the location, term of the agreement and the cash flow of the complex