Back to properties
Purchased
High growth location!
This is our client’s second purchase with Rethink Investing. They were looking for a high yielding commercial asset that would contribute to their passive income goals. After viewing a few assets we landed on this one due to the security of the lease, high growth location and strong yield for the market.
Key Highlights
• Building Area: 620m2
• NLA: 1,700m2
• Bank guarantee of $120,000
• Yearly increases of 3% or CPI, the greater of
• 3-year lease expires 21st February – March 2025 (recently renewed option)
Purchase Details
Asking Price
3500000
Purchase Price
3150000
Deposit (assuming
70
% debt)
945000
Stamp Duty
Nil
154323
Building Report*
900
Solicitor Cost*
7000
Valuation*
3000
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
1109223
Purchase Price + Purchasing Cost
3315223
Net Annual Cash Flow Return
214000
Net Yield on Property
6.79
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.46
%
Cash-On-Cash Returns
Deposit Needed =
% + Costs
1110223
CASH FLOW AFTER
MORTGAGE COSTS
MORTGAGE COSTS
Cost of Loan
(Assume
3
% pa on
70
% debt)
66150
Return of Equity
(Pure cash flow return)
13.32
%
Return of Equity with a
5% Capital Growth Rate:
27.50
%
Return of Equity with a
7% Capital Growth Rate:
33.18
%
Return of Equity
10% Capital Growth Rate:
41.69
%
*approximate numbers
More Properties
Discover more examples of our commercial properties transactions.
Start Creating Wealth Through Property Today
Insert your details to book a complimentary consultation with one of our expert Senior Buyer Advocates.
