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Purchased
Double income asset
We helped our client secure this premium retail asset in Canberra and completed all the due diligence for a successful acquisition. This is our valued client’s first purchase with Rethink Investing. They are a very experienced investor who own many residential properties. They are now transitioning into quality commercial investments like this one.
Purchase Details
Asking Price
2700000
Purchase Price
2590000
Deposit (assuming
70
% debt)
777000
Stamp Duty
118157
Building Report*
900
Solicitor Cost*
7000
Valuation*
3500
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
906557
Purchase Price + Purchasing Cost
2719557
Net Annual Cash Flow Return
152212
Net Yield on Property
5.88
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.6
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
906557
Cost of Loan
(Assume
3
% pa on
70
% debt)
63429
Return of Equity
(Pure cash flow return)
8.79
%
Return of Equity with a
5% Capital Growth Rate:
23.08
%
Return of Equity with a
7% Capital Growth Rate:
28.79
%
Return of Equity
10% Capital Growth Rate:
37.36
%
*approximate number
Key Highlights
• Building Area: 349m2
• Two quality tenants on long leases
• Fixed 3.5% & 3.75% annual rental increases
• Modern centre built in 2007
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