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Purchased

Diverse rental return!

  • 44 car spaces
  • Annual income: $228,648pa + outs + GST
  • 100% flood free site

Purchase Details

Asking Price

$3,700,000

Purchase Price

$3,450,000

Deposit (assuming 70% debt) - 30%

$1,035,000

Stamp Duty

$192,142

Building Report*

$900

Solicitor Costs

$7,500

Valuation

$4,000

Total Cash Required

$1,239,542

Purchase Price + Purchasing Costs

$3,654,542

Net Annual Cash Flow Return

$228,648

Net Yield on Property

6.63%

Net Yield Accounting for Purchase Costs

6.26%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,239,542

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

$108,675

Return on Equity (pure cash flow return):

9.68%

Return on Equity with a 5% Capital Growth Rate:

23.60%

Return on Equity with a 7% Capital Growth Rate:

29.16%

Return on Equity with a 10% Capital Growth Rate:

37.51%

*approximate numbers

Building Type: Commercial
Building Area: 848m2

NLA: 2,142m2
WALE: 3

How we helped this client

This is our clients first purchase with us. They are successful business people who were looking to build a reliable secondary income. This asset fit their budget perfectly and offered them the security of multiple long term leases. Also this asset is in the flood free part of Gympie, after the floods many businesses are trying to move away from flood affected properties towards flood free ones like this. Making this asset more in demand than ever.

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