Purchased Set-and-forget! 12-year lease expires 2034 Strong 6.24% net yield Total current net rent: $265,000 (after 100% of the outgoings) Purchase Details Asking Price $4,800,000 Purchase Price $4,250,000 Deposit (assuming 70% debt) - 30% $1,275,000 Stamp Duty $233,178 Building Report* $900 Solicitor Costs $8,000 Valuation $3,500 Total Cash Required $1,520,578 Purchase Price + Purchasing Costs $4,495,578 Net Annual Cash Flow Return $265,000 Net Yield on Property 6.24% Net Yield Accounting for Purchase Costs 5.89% Cash-On-Cash Returns Deposit Needed = 30% + Costs: $1,520,578 Cost of loan (assume 3% pa on 70% debt): $89,250 Return on Equity (pure cash flow return): 11.56% Return on Equity with a 5% Capital Growth Rate: 25.53% Return on Equity with a 7% Capital Growth Rate: 31.12% Return on Equity with a 10% Capital Growth Rate: 39.51% *approximate numbers Building Type: Retail Building Area: 1,335m2 NLA: 4,430m2 WALE: N/A How we helped this client This is our client’s third purchase with Rethink Investing. They were looking to buy a set-and-forget style of investment to help them prepare for retirement. This purchase was perfect as it came with the security of a global brand that has been in operation since 1965 (Gold’s Gym) and a very expensive fit-out, which would make it very difficult for the tenant to move. 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 PhoneThis field is for validation purposes and should be left unchanged.