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Purchased

Prime corner position!

  • 2 car spaces
  • 5+5 year lease
  • Currently returning $64,680pa net

Purchase Details

Asking Price

$1,120,000

Purchase Price

$1,050,000

Deposit (assuming 70% debt) - 30%

$315,000

Stamp Duty

$42,752

Building Report*

$500

Solicitor Costs

$5,500

Valuation

$2,500

Total Cash Required

$366,252

Purchase Price + Purchasing Costs

$1,101,252

Net Annual Cash Flow Return

$64,680

Net Yield on Property

6.16%

Net Yield Accounting for Purchase Costs

5.87%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$366,252

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

$22,050

Return on Equity (pure cash flow return):

11.64%

Return on Equity with a 5% Capital Growth Rate:

25.97%

Return on Equity with a 7% Capital Growth Rate:

31.71%

Return on Equity with a 10% Capital Growth Rate:

40.31%

*approximate numbers

Building Type: Retail
Building Area: 177m2

NLA: 177m2
WALE: 5

How we helped this client

This was our clients’ first commercial purchase after purchasing PPOR, a purpose-built café/restaurant that was the perfect addition to their growing portfolio. We liked the hot spot location, long-standing tenant and prime corner position. They already have plans in place to add a second asset by the end of the year through Rethink Investing’s buyer’s agency.

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