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Purchased

Premium location with an allied health tenant

  • Lease = 5 + 5 years
  • Total net income = $117,000
  • Outgoings = 100% payable by the tenant

Purchase Details

Asking Price

$1,950,000

Purchase Price

$1,725,000

Deposit (assuming 70% debt) - 30%

$517,500

Stamp Duty

$86,209.26

Building Report*

$600

Solicitor Costs

$7,000

Valuation

$3,000

Total Cash Required

$614,309.26

Purchase Price + Purchasing Costs

$1,821,809.26

Net Annual Cash Flow Return

$117,000

Net Yield on Property

6.78%

Net Yield Accounting for Purchase Costs

6.42%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$614,309.26

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

$63,393.75

Return on Equity (pure cash flow return):

8.73%

Return on Equity with a 5% Capital Growth Rate:

22.77%

Return on Equity with a 7% Capital Growth Rate:

28.38%

Return on Equity with a 10% Capital Growth Rate:

36.81%

*approximate numbers

Building Type: Retail
Building Area: 154m2

NLA: 154m2
WALE: 2

How we helped this client

This is our clients’ third property with Rethink Investing, which met all of their criteria and a minimum yield requirement of 6.50%. A low-maintenance asset that would be a “set and forget” property purchased specifically for their SMSF. 

This property comes with a medical tenant on a 5 + 5 year lease, clearing over $53,000pa in passive income after 100% outgoings and 70% mortgage costs at the current interest rates!

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