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Purchased

Off-market industrial investment!

  • Net income = $205,560, with the tenant paying for all outgoings
  • Significant land holding of 4,218m2
  • 60.2m of frontage on a busy road

Purchase Details

Asking Price

$3,000,000

Purchase Price

$2,815,243

Deposit (assuming 65% debt) - 35%

$985,335.05

Stamp Duty

$153,176.49

Building Report*

$1,000

Solicitor Costs

$8,500

Valuation

$4,000

Total Cash Required

$1,152,011.54

Purchase Price + Purchasing Costs

$2,981,919.49

Net Annual Cash Flow Return

$205,560

Net Yield on Property

7.30%

Net Yield Accounting for Purchase Costs

6.89%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$1,152,011.54

Cost of loan (assume 5% pa on 65% debt):

$91,495.40

Return on Equity (pure cash flow return):

9.90%

Return on Equity with a 5% Capital Growth Rate:

22.12%

Return on Equity with a 7% Capital Growth Rate:

27.01%

Return on Equity with a 10% Capital Growth Rate:

34.34%

*approximate numbers

Building Type: Industrial
Building Area: 1,714m2

NLA: 4,218m2
WALE: 2.3

How we helped this client

This is our client’s third purchase with Rethink Investing, which was purchased off-market directly from the fund manager. They now have a substantial passive income from three high-yielding commercial properties, with previous purchases in the Central Coast, NSW and southeast QLD. This third investment, located in a major regional centre, currently has a robust economy with a 200,000 population.

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