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Purchased

7 year lease to multinational tenant!

  • Tenant option in place to November 2035
  • $55,700 net pa
  • Security with $37,000 bank guarantee

Purchase Details

Asking Price

$1,200,000

Purchase Price

$1,052,000

Deposit (assuming 70% debt) - 30%

$315,600

Stamp Duty

$45,866

Building Report*

$600

Solicitor Costs

$5,500

Valuation

$2,000

Total Cash Required

$369,566

Purchase Price + Purchasing Costs

$1,105,966

Net Annual Cash Flow Return

$55,700

Net Yield on Property

5.29%

Net Yield Accounting for Purchase Costs

5.04%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$369,566

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

$22,092

Return on Equity (pure cash flow return):

9.09%

Return on Equity with a 5% Capital Growth Rate:

23.33%

Return on Equity with a 7% Capital Growth Rate:

29.02%

Return on Equity with a 10% Capital Growth Rate:

37.56%

*approximate numbers

Building Type: Retail
Building Area: 150m2

NLA: 150m2
WALE: 7 years

How we helped this client

This was our client’s second purchase with Rethink Investing. They were looking for an investment with a long secure lease to help facilitate lending. After 100% of the mortgage and outgoings were accounted for, this solid commercial investment clears them nearly $700 per week in passive income.

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