Join Rethink Commercial Education - Sign up for the 3rd exclusive cohort waiting list!

Purchased

Well located freestanding retail with strong growth potential!

  • Freehold corner block minutes from a major regional CBD
  • High exposure location with 20,000 passing vehicles daily
  • 18 onsite car parks + 30KW Solar System

Purchase Details

Asking Price

$3,000,000

Purchase Price

$2,830,000

Deposit (assuming 70% debt) - 30%

$849,000

Stamp Duty

$153,499

Building Report*

$800

Solicitor Costs

$5,500

Valuation

$3,000

Total Cash Required

$1,011,799

Purchase Price + Purchasing Costs

$2,992,799

Net Annual Cash Flow Return

$213,000

Net Yield on Property

7.53%

Net Yield Accounting for Purchase Costs

7.12%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,011,799

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

$49,525

Return on Equity (pure cash flow return):

16.16%

Return on Equity with a 5% Capital Growth Rate:

30.14%

Return on Equity with a 7% Capital Growth Rate:

35.74%

Return on Equity with a 10% Capital Growth Rate:

44.13%

*approximate numbers

Building Type: Retail
Building Area: 1451m2

NLA: 792m2
WALE: N/A

How we helped this client

This property was recently secured OFF-MARKET for a valued Rethink Investing client.
This property is minutes from a major regional CBD, situated on one of the busiest arterial roads into town. This site is a great freestanding retail site with fantastic signage exposure to the 20,000 passing cars daily. The location of this asset is in great demand thus providing an amazing cash flow and strong growth prospect for the future owner. There is also potential to strata title in the future, making it a good add value asset STCA

More properties

Contact Us