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Purchased
Modern industrial warehouse!
This is our valued client’s first purchase with Rethink Investing. They were looking for a top-grade industrial asset to hold for a very long period. After looking for a few months, we landed on this extremely attractive asset due to the ASX tenant and the property’s sheer size for the price point. A great overall investment that will give our client over $1,000 per week in passive income even after the mortgage expenses.
Key Highlights
• Building Area: 1,120m2
• NLA: 2,001m2
• Leased to 2025
• Guarantee, secured by an ASX listed tenant
• Tenant pays all outgoings, incl rental management fees and land tax
Purchase Details
Asking Price
1350000
Purchase Price
1245000
Deposit (assuming
70
% debt)
373500
Stamp Duty
Nil
55845
Building Report*
600
Solicitor Cost*
6500
Valuation*
3000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
439445
Purchase Price + Purchasing Cost
1310945
Net Annual Cash Flow Return
78030
Net Yield on Property
6.27
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.95
%
Cash-On-Cash Returns
Deposit Needed =
% + Costs
439445
CASH FLOW AFTER
MORTGAGE COSTS
MORTGAGE COSTS
Cost of Loan
(Assume
3
% pa on
70
% debt)
26145
Return of Equity
(Pure cash flow return)
11.81
%
Return of Equity with a
5% Capital Growth Rate:
25.97
%
Return of Equity with a
7% Capital Growth Rate:
31.64
%
Return of Equity
10% Capital Growth Rate:
40.14
%
*approximate numbers
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