Join Rethink Commercial Education - Sign up for the 3rd exclusive cohort waiting list!

Purchased

Long term Medical tenant

  • $99,000 + GST + tenants pay outgoings
  • 7 consulting rooms, Theatre Room, Reception Area and Staff kitchenette
  • Prominent corner positioning

Purchase Details

Asking Price

$1,600,000

Purchase Price

$1,475,000

Deposit (assuming 70% debt) - 30%

$442,500

Stamp Duty

$70,500

Building Report*

$800

Solicitor Costs

$4,000

Valuation

2,500

Total Cash Required

$520,300

Purchase Price + Purchasing Costs

$1,552,800

Net Annual Cash Flow Return

$99,000

Net Yield on Property

6.71%

Net Yield Accounting for Purchase Costs

6.38%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$520,300

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

$30,975

Return on Equity (pure cash flow return):

13.07%

Return on Equity with a 5% Capital Growth Rate:

27.25%

Return on Equity with a 7% Capital Growth Rate:

32.92%

Return on Equity with a 10% Capital Growth Rate:

41.42%

*approximate numbers

Building Type: Medical asset
Building Area: 275m2

Land Area: 400m2
WALE: 2.8 years

How we helped this client

Our client wanted help to secure an off-market property and after looking at a number of them, this asset was for them. It was a high yielding sub $2m freestanding medical asset. Properties like this are rarely seen at yields over 5%. This one was secured at 6.71%. We like this property because this medical commercial asset has a long-established medical specialist tenant having occupied the site since 2009. This site has dual street access and great retail exposure, with a glass shop front. Better yet, this is a freestanding asset.

More properties

Contact Us