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Purchased

Sit back and enjoy the passive income

  • 6% net income + growth
  • 2+2 year lease
  • Entry level price point

Purchase Details

Asking Price

$500,000

Purchase Price

$467,000

Deposit (assuming 70% debt) - 30%

$140,100

Stamp Duty

$9,058

Building Report*

$700

Solicitor Costs

$4,000

Valuation

$2,000

Total Cash Required

$155,858

Purchase Price + Purchasing Costs

$482,758

Net Annual Cash Flow Return

$28,000

Net Yield on Property

6%

Net Yield Accounting for Purchase Costs

6.80%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$155,858

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

$9,807

Return on Equity (pure cash flow return):

11.67%

Return on Equity with a 5% Capital Growth Rate:

26.65%

Return on Equity with a 7% Capital Growth Rate:

32.65%

Return on Equity with a 10% Capital Growth Rate:

41.64%

*approximate numbers

Building Type: Industrial Asset
Building Area: 113m2

Land Area: 147m2
WALE: 2

How we helped this client

We recently secured this property for one of our valued clients. This bite sized investment will produce the new owner a passive income of $344 per week even after the mortgage and 100% of outgoings and land tax have been accounted for, plus increases of 3% and fixed rental increases annually. Industrial assets like this are in extremely high demand and we found this one off-market for our client saving them on price due to not having to compete with other buyers.

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