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Purchased
Commercial property leased by a global tenant
Leased by a global tenant for 3 years, this investment clears over $25,000pa in passive income after 100% of the outgoings and a 70% mortgage cost at the current interest rates! As busy professionals, our clients have purchased this second property and are looking to replace their income eventually. Their first property was a high-yielding industrial property in QLD, and the pair of properties now give them more than $50,000 in passive income.
Purchase Details
Asking Price
1150000
Purchase Price
1070000
Deposit (assuming
70
% debt)
321000
Stamp Duty
46805.7
Building Report*
700
Solicitor Cost*
6500
Valuation*
3000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
378005.7
Purchase Price + Purchasing Cost
1127005.7
Net Annual Cash Flow Return
64400
Net Yield on Property
6.02
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.71
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
378005.7
Cost of Loan
(Assume
5.25
% pa on
70
% debt)
39236.25
Return of Equity
(Pure cash flow return)
6.63
%
Return of Equity with a
5% Capital Growth Rate:
20.79
%
Return of Equity with a
7% Capital Growth Rate:
26.45
%
Return of Equity
10% Capital Growth Rate:
34.94
%
*approximate number
Key Highlights
• Building Area: 560m2
• NLA: 560m2
• Global tenant
• Net income = $64,400pa
• Triple net lease with the tenant paying land tax, rental management and 100% of the outgoings
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