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Purchased

High yielding medical practice

  • $162,900 pa + GST + Outgoings
  • Secure long-term tenant since 2000
  • 3+3 year lease

Purchase Details

Asking Price

$2,200,000

Purchase Price

$2,000,000

Deposit (assuming 70% debt) - 30%

$600,000

Stamp Duty

$102,000

Building Report*

$750

Solicitor Costs

$4,500

Valuation

$3,000

Total Cash Required

$707,250

Purchase Price + Purchasing Costs

$2,107,250

Net Annual Cash Flow Return

$162,900

Net Yield on Property

8.15%

Net Yield Accounting for Purchase Costs

7.73%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$707,250

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

$38,500

Return on Equity (pure cash flow return):

17.59%

Return on Equity with a 5% Capital Growth Rate:

31.73%

Return on Equity with a 7% Capital Growth Rate:

37.38%

Return on Equity with a 10% Capital Growth Rate:

45.87%

*approximate numbers

Building Type: Medical
Building Area: 520m2

Land Area: 600m2
WALE: 3

How we helped this client

This was our valued client’s second property purchased with us. They were seeking the highest possible yield they could find in a medical investment, and this was quite a high-yield considering the current tight market. We searched Australia wide for three months before finding this ideal asset. Our client also lived overseas so they needed our help to carry out 100% of the due-diligence in which we found no faults in the asset, the lease, the numbers or the tenant. All around this was a very strong deal.

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