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Purchased

Multi-tenanted Commercial Investment

  • NET Annual income of $193,913 p.a + GST (this is after rental management and land tax)
  • Diverse blend of Medical, Retail & Professional tenancies
  • Highest Possible Real-Estate Returns = COMMERCIAL

Purchase Details

Asking Price

$3,300,000

Purchase Price

$2,950,000

Deposit (assuming 65% debt) - 35%

$1,032,500

Stamp Duty

$161,431.60

Building Report*

$1,200

Solicitor Costs

$8,000

Valuation

$4,000

Total Cash Required

$1,207,131.60

Purchase Price + Purchasing Costs

$3,124,631.60

Net Annual Cash Flow Return

$193,913

Net Yield on Property

6.57%

Net Yield Accounting for Purchase Costs

6.21%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$1,207,131.60

Cost of loan (assume 6% pa on 65% debt):

$115,050

Return on Equity (pure cash flow return):

6.53%

Return on Equity with a 5% Capital Growth Rate:

18.75%

Return on Equity with a 7% Capital Growth Rate:

23.64%

Return on Equity with a 10% Capital Growth Rate:

30.97%

*approximate numbers

Building Type: Retail
Building Area:798m2

Land Area: 2,695m2
WALE: 3.7 Years

Our valued client was looking for a commercial investment with multiple tenants in a growth corridor of Australia, and Rethink Investing was able to secure this strong performing mixed use centre off-market. This entry level freehold shopping centre offers great capital growth potential, as well as a day one net return of 6.57%. With interest rates at an all-time high, now is the perfect time to invest in a life-changing commercial property like this, before the next boom begins!



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