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Purchased
Rental income and equity!
This was our clients first property. They were after a multi-tenant industrial asset to spread out their income risk. This WA asset was the perfect combination of low risk, upside and being within their budget.
Key Highlights
• Building Area: 980m2
• NLA: 2,100m2
• 3x industrial units on one title
• 2 director guarantees in the lease
• Annual increases CPI (Perth 5.7% ABS 2021)
Purchase Details
Asking Price
1450000
Purchase Price
1630000
Deposit (assuming
70
% debt)
489000
Stamp Duty
Nil
75753
Building Report*
900
Solicitor Cost*
8000
Valuation*
3000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
576653
Purchase Price + Purchasing Cost
1717653
Net Annual Cash Flow Return
93000
Net Yield on Property
5.71
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.41
%
Cash-On-Cash Returns
Deposit Needed =
% + Costs
576653
CASH FLOW AFTER
MORTGAGE COSTS
MORTGAGE COSTS
Cost of Loan
(Assume
3
% pa on
70
% debt)
34230
Return of Equity
(Pure cash flow return)
10.19
%
Return of Equity with a
5% Capital Growth Rate:
24.32
%
Return of Equity with a
7% Capital Growth Rate:
29.98
%
Return of Equity
10% Capital Growth Rate:
38.46
%
*approximate numbers
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