Purchased Double income asset Two quality tenants on long leases Fixed 3.5% & 3.75% annual rental increases Modern centre built in 2007 Purchase Details Asking Price $2,700,000 Purchase Price $2,590,000 Deposit (assuming 70% debt) - 30% $770,000 Stamp Duty $118,157 Building Report* $900 Solicitor Costs $7,000 Valuation $3,500 Total Cash Required $906,557 Purchase Price + Purchasing Costs $2,719,557 Net Annual Cash Flow Return $152,212 Net Yield on Property 5.88% Net Yield Accounting for Purchase Costs 5.60% Cash-On-Cash Returns Deposit Needed = 30% + Costs: $906,557 Cost of loan (assume 4% pa on 70% debt): $72,520 Return on Equity (pure cash flow return): 8.79% Return on Equity with a 5% Capital Growth Rate: 23.08% Return on Equity with a 7% Capital Growth Rate: 28.79% Return on Equity with a 10% Capital Growth Rate: 37.36% *approximate numbers Building Type: Commercial Building Area: 349m2 NLA: / WALE: 5.8 How we helped this client We helped our client secure this premium retail asset in Canberra and completed all the due diligence for a successful acquisition. This is our valued client’s first purchase with Rethink Investing. They are a very experienced investor who own many residential properties. They are now transitioning into quality commercial investments like this one. More properties Contact Us Get in touch If you’re interested in joining the lucrative world of commercial property, contact us now. *required fields Name* first name last name Phone*Email* Date Lead Submitted Date Format: DD slash MM slash YYYY NameThis field is for validation purposes and should be left unchanged.