Join Rethink Commercial Education - Sign up for the 3rd exclusive cohort waiting list!

Purchased

Large freehold retail asset

  • Net income: $329,108.81
  • Diverse tenancy mix
  • 41 parking bays

Purchase Details

Asking Price

$5,000,000

Purchase Price

$4,750,000

Deposit (assuming 65% debt) - 35%

$1,662,500

Stamp Duty

$271,991.20

Building Report*

$1,200

Solicitor Costs

$8,500

Valuation

$4,000

Total Cash Required

$1,948,191.20

Purchase Price + Purchasing Costs

$5,035,691.20

Net Annual Cash Flow Return

$329,108.81

Net Yield on Property

6.93%

Net Yield Accounting for Purchase Costs

6.54%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$1,948,191.20

Cost of loan (assume 5.25% pa on 65% debt):

$162,093.75

Return on Equity (pure cash flow return):

8.57%

Return on Equity with a 5% Capital Growth Rate:

20.76%

Return on Equity with a 7% Capital Growth Rate:

25.64%

Return on Equity with a 10% Capital Growth Rate:

32.95%

*approximate numbers

Building Type: Retail
Building Area: 1,257m2

NLA: 3,077m2
WALE: 4.4

How we helped this client

This highly exposed corner site is situated on a major thoroughfare with 22,306 vehicles passing daily. With four quality tenants in place, this asset will give our client a high level of income security. The investment clears over $167,000pa in passive income for the new owner. This is after 100% of the outgoings and 65% mortgage costs at the current interest rates!

This is our client’s first property with Rethink Investing. They were looking for a high-yielding property to help build passive income. This large freehold asset was exactly what our clients were looking for. Having multiple tenants diversifies their income risk, which was a big positive for them.

More properties

Contact Us