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Purchased

Industrial warehouse with multiple value ads

  • Quality Capital City Industrial Suburb
  • Long Term Tenant
  • Easy to re-let these types of assets

Purchase Details

Asking Price

$1,090,000

Purchase Price

$1,000,000

Deposit (assuming 70% debt) - 30%

$300,000

Stamp Duty

$43,154.90

Building Report*

$550

Solicitor Costs

$4,000

Valuation

1,200

Total Cash Required

$348,904.90

Purchase Price + Purchasing Costs

$1,048,904.90

Net Annual Cash Flow Return

$65,000

Net Yield on Property

6.5%

Net Yield Accounting for Purchase Costs

6.2%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$348,904.90

Cost of loan (assume 3% pa on 70% debt):

$21,000.00

Return on Equity (pure cash flow return):

12.61%

Return on Equity with a 5% Capital Growth Rate:

26.94%

Return on Equity with a 7% Capital Growth Rate:

32.67%

Return on Equity with a 10% Capital Growth Rate:

41.27%

*approximate numbers

Building Type: Industrial Asset
Building Area: Unit 1 – 412m2, Unit 2 – 374m2

Land Area: 1321m2
WALE: 2

How we helped this client

Our client had a maximum budget of $1 million. They were looking for an asset with a large land component in a capital city. For this budget it was a challenge however we secured this property in Perth for $1 million that came with 1321m2 of land and two warehouses rented by the same tenant. We like this property because it can be leased collectively or separately as two lots, providing a strong cash flow for the investor. The property was also under rented which means there is some future upside if the rent is ever risen to the market level.

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