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Purchased

Multi-tenant freehold asset!

  • 11 tenants 
  • Annual income: $313,296pa + outs + GST
  • Multi-storey zoning allowing for future development opportunities

Purchase Details

Asking Price

$4,050,000

Purchase Price

$3,875,000

Deposit (assuming 65% debt) - 35%

$1,356,250

Stamp Duty

$218,266.56

Building Report*

$1,000

Solicitor Costs

$9,500

Valuation

$4,500

Total Cash Required

$1,589,516.56

Purchase Price + Purchasing Costs

$4,108,266.56

Net Annual Cash Flow Return

$313,296

Net Yield on Property

8.09%

Net Yield Accounting for Purchase Costs

7.63%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$1,589,516.56

Cost of loan (assume 5% pa on 65% debt):

$125,937.50

Return on Equity (pure cash flow return):

11.79%

Return on Equity with a 5% Capital Growth Rate:

23.98%

Return on Equity with a 7% Capital Growth Rate:

28.85%

Return on Equity with a 10% Capital Growth Rate:

36.17%

*approximate numbers

Building Type: Retail
Building Area: 1,935m2

NLA: 2,552m2
WALE: 2

How we helped this client

This is our client’s 1st property with Rethink Investing. Our client was looking for a high-yielding freehold asset, and after reviewing several assets, this is the one they landed on. Even after a 5% mortgage has been taken out of the cash flow numbers, the passive income remaining is an impressive $187,358 per annum.

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