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Purchased

Commercial property leased by a global tenant

  • Global tenant
  • Net income = $64,400pa
  • Triple net lease with the tenant paying land tax, rental management and 100% of the outgoings

Purchase Details

Asking Price

$1,150,000

Purchase Price

$1,070,000

Deposit (assuming 70% debt) - 30%

$321,000

Stamp Duty

$46,805.70

Building Report*

$700

Solicitor Costs

$6,500

Valuation

$3,000

Total Cash Required

$378,005.70

Purchase Price + Purchasing Costs

$1,127,005.70

Net Annual Cash Flow Return

$64,400

Net Yield on Property

6.02%

Net Yield Accounting for Purchase Costs

5.71%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$378,005.70

Cost of loan (assume 5.25% pa on 70% debt):

Return on Equity (pure cash flow return):

6.63%

Return on Equity with a 5% Capital Growth Rate:

20.79%

Return on Equity with a 7% Capital Growth Rate:

26.45%

Return on Equity with a 10% Capital Growth Rate:

34.94%

*approximate numbers

Building Type: Retail
Building Area: 560m2

NLA: 560m2
WALE: 5

How we helped this client

Leased by a global tenant for 3 years, this investment clears over $25,000pa in passive income after 100% of the outgoings and a 70% mortgage cost at the current interest rates!

As busy professionals, our clients have purchased this second property and are looking to replace their income eventually. Their first property was a high-yielding industrial property in QLD, and the pair of properties now give them more than $50,000 in passive income.

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