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Purchased

Rental income and equity!

  • 4x industrial units on one title
  • Less than 5-years old construction, good depreciation
  • 7.5m internal height, container height roller door access to each unit

Purchase Details

Asking Price

$4,500,000

Purchase Price

$4,150,000

Deposit (assuming 70% debt) - 30%

$1,245,000

Stamp Duty

$234,233

Building Report*

$900

Solicitor Costs

$8,000

Valuation

$4,000

Total Cash Required

$1,492,133

Purchase Price + Purchasing Costs

$4,397,133

Net Annual Cash Flow Return

$233,000

Net Yield on Property

5.61%

Net Yield Accounting for Purchase Costs

5.30%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,492,133

Cost of loan (assume 3% pa on 70% debt):

$87,150

Return on Equity (pure cash flow return):

9.77%

Return on Equity with a 5% Capital Growth Rate:

23.68%

Return on Equity with a 7% Capital Growth Rate:

29.24%

Return on Equity with a 10% Capital Growth Rate:

37.59%

*approximate numbers

Building Type: Industrial
Building Area: 1,550m2

NLA: 3,250m2
WALE: 2.5

How we helped this client

This is our valued client’s first purchase with Rethink Investing. They were looking for an industrial asset to add to their portfolio. This property had the bonus of some upside in both rental income and equity through strata titling from one title to four. This would have the outcome of a $750,000 equity uplift!

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