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Purchased

Solid cash flow + capital growth!

  • National tenant
  • 700m2 Net Lettable Area
  • 1,550m2 Total Land Area

Purchase Details

Asking Price

$2,150,333

Purchase Price

$2,000,000

Deposit (assuming 70% debt) - 30%

$600,000

Stamp Duty

$102,653

Building Report*

$600

Solicitor Costs

$5,500

Valuation

$2,000

Total Cash Required

$710,753

Purchase Price + Purchasing Costs

$2,110,753

Net Annual Cash Flow Return

$127,600

Net Yield on Property

6.38%

Net Yield Accounting for Purchase Costs

6.05%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$710,753

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

$42,000

Return on Equity (pure cash flow return):

12.04%

Return on Equity with a 5% Capital Growth Rate:

26.11%

Return on Equity with a 7% Capital Growth Rate:

31.74%

Return on Equity with a 10% Capital Growth Rate:

40.18%

*approximate numbers

Building Type: Industrial
Building Area: 1,550m2

NLA: 700m2
WALE: 3

How we helped this client

Secured by the Rethink Investing team for our valued client, this 1,550m2 freehold lot is 12km from the CBD with an established national tenant in place. This was our client’s second commercial property purchased with us. They were looking for a passive income investment for their SMSF which would also be exposed to some strong capital growth. This freehold asset fit their budget perfectly. Rethink Investing helped secure the investment and carry out all aspects of the due-diligence and the client is keen to work on a third commercial investment.

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