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Purchased

Multi-tenant Freehold Investment

  • Diverse Income Profile: 11 retail and office tenancies
  • Net income of $155,510.92, (after 100% of outgoings including mgt fees and land tax)
  • Main road location with easy parking

Purchase Details

Asking Price

$2,300,000

Purchase Price

$2,080,000

Deposit (assuming 65% debt) - 35%

$728,000

Stamp Duty

$107,994.46

Building Report*

$1,500

Solicitor Costs

$12,000

Valuation

$5,000

Total Cash Required

$854,494.46

Purchase Price + Purchasing Costs

$2,206,494.46

Net Annual Cash Flow Return

$155,510.92

Net Yield on Property

7.48%

Net Yield Accounting for Purchase Costs

7.05%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$854,494.46

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

$81,120

Return on Equity (pure cash flow return):

8.71%

Return on Equity with a 5% Capital Growth Rate:

20.88%

Return on Equity with a 7% Capital Growth Rate:

25.75%

Return on Equity with a 10% Capital Growth Rate:

33.05%

*approximate numbers

Building Type: Retail
Building Area: 802m2

Land Area: 3,825m2
WALE: 2.5

This 3,825m2 freehold property offers two lots, providing increased liquidity and reduced risk. It has a great yield for its quality and is located in an area with a low vacancy rate. The property has a long history of high occupancy and fast-filling vacancies. As a result, Rethink Investing secured this property for our valued client for just over $2m. During the due diligence, we found that the income was higher than what was advertised, boosting the net yield to an impressive 7.48% after all costs.

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