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Purchased

Showroom and warehouse!

  • Annual income: $212,180pa + outs + GST
  • Total net lettable area of 871sqm
  • WALE: 4.6 years

Purchase Details

Asking Price

$3,200,000

Purchase Price

$3,000,000

Deposit (assuming 70% debt) - 30%

$900,000

Stamp Duty

$153,025

Building Report*

$1,500

Solicitor Costs

$8,500

Valuation

$4,000

Total Cash Required

$1,067,025

Purchase Price + Purchasing Costs

$3,167,025

Net Annual Cash Flow Return

$212,180

Net Yield on Property

7.07%

Net Yield Accounting for Purchase Costs

6.70%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,067,025

Cost of loan (assume 4.5% pa on 70% debt):

$99,750

Return on Equity (pure cash flow return):

10.54%

Return on Equity with a 5% Capital Growth Rate:

24.59%

Return on Equity with a 7% Capital Growth Rate:

30.22%

Return on Equity with a 10% Capital Growth Rate:

38.55%

*approximate numbers

Building Type: Industrial
Building Area: 871m2

NLA: 4,138m2
WALE: 4.6

How we helped this client

This is our client’s 2nd purchase with Rethink Investing. They purchased a great industrial warehouse in Perth for their first purchase, and now they want to diversify with a property in Queensland that focuses on high yield. This asset was perfect as it came with a strong tenant, 7% net yield and a 5-year lease. 

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