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Purchased

ASX Tenant with Great Rental Uplift

  • NET Annual income of $140,000 p.a + GST (this is after rental management and land tax)
  • Industrial warehousing
  • Strong established tenant

Purchase Details

Asking Price

$2,450,000

Purchase Price

$1,950,000

Deposit (assuming 65% debt) - 35%

$682,500

Stamp Duty

$100,009.60

Building Report*

$1,000

Solicitor Costs

$7,500

Valuation

$3,000

Total Cash Required

$794,009.60

Purchase Price + Purchasing Costs

$2,061,509.60

Net Annual Cash Flow Return

$140,000

Net Yield on Property

7.18%

Net Yield Accounting for Purchase Costs

6.79%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$794,009.60

Cost of loan (assume 6% pa on 65% debt):

$76,050

Return on Equity (pure cash flow return):

8.05%

Return on Equity with a 5% Capital Growth Rate:

20.33%

Return on Equity with a 7% Capital Growth Rate:

20.33%

Return on Equity with a 10% Capital Growth Rate:

25.25%

*approximate numbers

Building Type: Industrial
Building Area: 1,600m2

Land Area: 4,271m2
WALE: 

We sourced and secured this solid industrial investment with an established tenant providing a strong return for our valued client. By negotiating off-market, the Rethink Investing team was able to secure this asset for a reduced purchase price. One of the benefits of working with Australia’s largest commercial buyer’s agency is that we offer a specialist commercial end to end service. From the moment you become a client of Rethink Investing, purchasing an investment property becomes stress free. We take you through the entire property investing process from start to finish. Your new job will be to sit back and relax.



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