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Purchased
Acquired for one of our clients – A rare 923 sqm freehold asset at this price point with an exceptional yield of 7.2%.
The client, a seasoned investor, looking to purchase their second commercial wanted a freehold asset with a high yield. The client knew this would be tough brief given the price point, however our acquisition team found a gem, the key was to make a quick decision and put the property under contract. An established baker, the tenant has just exercised the option of his lease expiring in July 2029.
Key Highlights
• 927sqm freehold• NLA 343sqm
• 14 car bays + overflow
• Net rent $82,992pa + Outgoings + GST
• Purchase Price $1,150,000• Established tenant
• Frontage to two streets• Future development site with beneficial access
Purchase Details
Asking Price
1520000
Purchase Price
1250000
Deposit (assuming
70
% debt)
345000
Stamp Duty
Nil
50341
Building Report*
1000
Solicitor Cost*
6500
Valuation*
2000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
29034.5
Total Cash Required
433875.5
Purchase Price + Purchasing Cost
1238875.5
Net Annual Cash Flow Return
82992
Net Yield on Property
7.22
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.70
%
Cash-On-Cash Returns
Deposit Needed =
% + Costs
433875.5
CASH FLOW AFTER
MORTGAGE COSTS
MORTGAGE COSTS
Cost of Loan
(Assume
6.5
% pa on
70
% debt)
56875
Return of Equity
(Pure cash flow return)
7.07
%
Return of Equity with a
5% Capital Growth Rate:
20.32
%
Return of Equity with a
7% Capital Growth Rate:
25.62
%
Return of Equity
10% Capital Growth Rate:
33.57
%
*approximate numbers
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