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Purchased

5 x separate incomes

  • Established tenancy mix, national anchor
  • 1346m2 NLA across 5 separate commercial units
  • Annual increases of 3% or CPI

Purchase Details

Asking Price

$3,050,000

Purchase Price

$2,900,000

Deposit (assuming 70% debt) - 30%

$870,000

Stamp Duty

$157,500

Building Report*

$1,300

Solicitor Costs

$8,000

Valuation

$3,500

Total Cash Required

$1,040,300

Purchase Price + Purchasing Costs

$3,070,300

Net Annual Cash Flow Return

$215,000

Net Yield on Property

7.41%

Net Yield Accounting for Purchase Costs

7.00%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,040,300

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

$60,900

Return on Equity (pure cash flow return):

14.81%

Return on Equity with a 5% Capital Growth Rate:

28.75%

Return on Equity with a 7% Capital Growth Rate:

34.33%

Return on Equity with a 10% Capital Growth Rate:

42.69%

*approximate numbers

Building Type: Industrial
Building Area: 3428m2

NLA: 1346m2
WALE: 2.7

How we helped this client

This is our client’s fourth purchase through Rethink Investing’s commercial buyers agency services and they were looking to add another high yielding commercial property to their already substantial sized portfolio. This one was perfectly suited to their requirements. Our client is now in a position to retire due to the passive income their portfolio generates.

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