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Purchased

Clean and tidy Perth industrial asset

  • Concrete tilt panel construction
  • $144,334 net return (Lot 1 $75,334 + Lot 2 $69,000)
  • Container height roller door

Purchase Details

Asking Price

$2,250,000

Purchase Price

$2,150,000

Deposit (assuming 70% debt) - 30%

$645,000

Stamp Duty

$102,000

Building Report*

$500

Solicitor Costs

$5,500

Valuation

$2,500

Total Cash Required

$755,500

Purchase Price + Purchasing Costs

$2,260,500

Net Annual Cash Flow Return

$144,334

Net Yield on Property

6.71%

Net Yield Accounting for Purchase Costs

6.39%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$755,500

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

$45,150

Return on Equity (pure cash flow return):

13.13%

Return on Equity with a 5% Capital Growth Rate:

27.36%

Return on Equity with a 7% Capital Growth Rate:

33.05%

Return on Equity with a 10% Capital Growth Rate:

41.59%

*approximate numbers

Building Type: Industrial
Building Area: 1521m2

NLA: 2,400m2
WALE: 3

How we helped this client

This was our client’s first commercial property. They were looking for a clean and tidy industrial asset with a decent yield. After viewing a few different assets Rethink Investing presented them, they landed on this property which is located in Perth. It was a fairly straightforward process throughout due-diligence as the tenants were paying on time, the building report was near perfect and all the legalities of the leases and the building passed with flying colours. The client is now on the hunt for their second commercial asset through Rethink Investing.

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