No items found.

Opportunity, value-add and cash-flow!

This was our client’s first purchase through Rethink Investing. We helped complete all the due diligence on a property that had some minor challenges with a building/pest report and some missing rental paperwork. In the end, we secured a substantial discount for our buyer and they are now set up for some strong profit in the coming years.

Purchased off-market, we secured this incredible multi-tenanted investment with rent spread over 6 tenancies. There is a great value add opportunity to strata title the lot, giving the buyer the ability to sell individually. Presenting great cash flow and future add value. A great addition to their portfolio!

Purchase Details
Asking Price
1950000
Purchase Price
1680000
Deposit (assuming
70
% debt)
504000
Stamp Duty
75894
Building Report*
1000
Solicitor Cost*
5500
Valuation*
2500
Other Fees* (Depreciation
report, bank fees)
Total Cash Required
588894
Purchase Price + Purchasing Cost
1764894
Net Annual Cash Flow Return
128223
Net Yield on Property
7.63
%
Net Yield Accounting for
Purchasing Costs
7.27
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
588894
Cost of Loan
(Assume
3
% pa on
70
% debt)
35280
Return of Equity
(Pure cash flow return)
15.78
%
Return of Equity with a
5% Capital Growth Rate:
30.05
%
Return of Equity with a
7% Capital Growth Rate:
35.75
%
Return of Equity
10% Capital Growth Rate:
44.31
%
*approximate number

Key Highlights

• Building Area: 1,397m2

• Land Area: 2716m2

• Net Return $128,223 p/a

• 6 tenancies, each with separate roller door access

• Opportunity to subdivide

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