PurchasedChildcare Commercial NET Annual income of $159,681 p.a + GST (after rental management and land tax) Lease Term – 11-year lease to ASX listed G8 Education – 78 place childcare centre Increases – Annual increases (The Greater of CPI or 3%)Purchase DetailsAsking Price$2,800,000Purchase Price$2,400,000Deposit (assuming 65% debt) - 35%$840,000Stamp Duty$127,649.50Building Report*$900Solicitor Costs$7,500Valuation$3,500Total Cash Required$979,549.50Purchase Price + Purchasing Costs$2,539,549.50Net Annual Cash Flow Return$159,681.54Net Yield on Property6.65%Net Yield Accounting for Purchase Costs6.29%Cash-On-Cash ReturnsDeposit Needed = 35% + Costs:$979,549.50Cost of loan (assume 6% pa on 65% debt):$93,600Return on Equity (pure cash flow return):6.75%Return on Equity with a 5% Capital Growth Rate:19.00%Return on Equity with a 7% Capital Growth Rate:23.90%Return on Equity with a 10% Capital Growth Rate:31.25%*approximate numbersBuilding Type: Commercial Building Area: 619m2Land Area: 1,793m2 WALE:This is our clients 1st purchase with Rethink Investing. They were looking for a recession-proof asset with a good yield. We were lucky enough to find them the highest yielding childcare in Australia! This deal was secured off-market by us for our valued client.More properties Contact UsGet in touchIf you’re interested in joining the lucrative world of commercial property, contact us now.*required fields Name* first name last name Phone*Email* HiddenDate Lead Submitted DD slash MM slash YYYY NameThis field is for validation purposes and should be left unchanged.