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Purchased

High yielding industrial asset in Brisbane

  • 6.7% net income + growth
  • 5 year lease
  • Food related business (essential service)

Purchase Details

Asking Price

$510,000

Purchase Price

$445,000

Deposit (assuming 70% debt) - 30%

$133,500

Stamp Duty

$8,214

Building Report*

$700

Solicitor Costs

$4,000

Valuation

$2,000

Total Cash Required

$148,414

Purchase Price + Purchasing Costs

$459,914

Net Annual Cash Flow Return

$30,000

Net Yield on Property

6.74%

Net Yield Accounting for Purchase Costs

6.52%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$148,414

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

$9,345

Return on Equity (pure cash flow return):

13.92%

Return on Equity with a 5% Capital Growth Rate:

28.91%

Return on Equity with a 7% Capital Growth Rate:

34.91%

Return on Equity with a 10% Capital Growth Rate:

43.90%

*approximate numbers

Building Type: Industrial Asset
Building Area: 305m2

Land Area: 305m2
WALE: 5

How we helped this client

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.

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