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Purchased
High yielding industrial asset in Brisbane
We recently secured this incredible industrial asset for our valued client at the entry level price of $445,000. The property will produce over $400 per week in passive income after 100% of the outgoings (including the mortgage). This was our client's second purchase with Rethink Investing. We liked this property because of the yield and the location being in a middle ring suburb of Brisbane. There are also some good upsides from the ability to raise the rent once this lease is over.
Key Highlights
• Building Area: 305m2
• Land Area: 305m2
• 6.7% net income + growth
• 5 year lease
• Food related business (essential service)
Purchase Details
Asking Price
510000
Purchase Price
445000
Deposit (assuming
70
% debt)
133500
Stamp Duty
Nil
8214
Building Report*
700
Solicitor Cost*
4000
Valuation*
2000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
148414
Purchase Price + Purchasing Cost
459914
Net Annual Cash Flow Return
30000
Net Yield on Property
6.74
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.52
%
Cash-On-Cash Returns
Deposit Needed =
% + Costs
148414
CASH FLOW AFTER
MORTGAGE COSTS
MORTGAGE COSTS
Cost of Loan
(Assume
3
% pa on
70
% debt)
9345
Return of Equity
(Pure cash flow return)
13.92
%
Return of Equity with a
5% Capital Growth Rate:
28.91
%
Return of Equity with a
7% Capital Growth Rate:
34.91
%
Return of Equity
10% Capital Growth Rate:
43.90
%
*approximate numbers
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