Purchased High growth location! 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 $3,500,000 Purchase Price $3,150,000 Deposit (assuming 70% debt) - 30% $945,000 Stamp Duty $154,323 Building Report* $900 Solicitor Costs $7,000 Valuation $3,000 Total Cash Required $1,109,223 Purchase Price + Purchasing Costs $3,315,223 Net Annual Cash Flow Return $214,000 Net Yield on Property 6.79% Net Yield Accounting for Purchase Costs 6.46% Cash-On-Cash Returns Deposit Needed = 30% + Costs: $1,110,223 Cost of loan (assume 3% pa on 70% debt): $66,150 Return on Equity (pure cash flow return): 13.32% Return on Equity with a 5% Capital Growth Rate: 27.50% Return on Equity with a 7% Capital Growth Rate: 33.18% Return on Equity with a 10% Capital Growth Rate: 41.69% *approximate numbers Building Type: Industrial Building Area: 620m2 NLA: 1,700m2 WALE: 3 How we helped this client 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. More properties Contact Us Get in touch If you’re interested in joining the lucrative world of commercial property, contact us now. *required fields Name* first name last name Phone*Email* Date Lead Submitted Date Format: DD slash MM slash YYYY EmailThis field is for validation purposes and should be left unchanged.