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Purchased

Medical based tenancy mix!

  • Annual increases of 3% or CPI
  • Net income $319,517 pa + GST
  • 1520m2 NLA across 4 separate commercial units

Purchase Details

Asking Price

$4,800,000

Purchase Price

$4,450,000

Deposit (assuming 70% debt) - 30%

$1,335,000

Stamp Duty

$220,290

Building Report*

$600

Solicitor Costs

$7,500

Valuation

$3,500

Total Cash Required

$1,566,890

Purchase Price + Purchasing Costs

$4,681,890

Net Annual Cash Flow Return

$319,517

Net Yield on Property

7.18%

Net Yield Accounting for Purchase Costs

6.82%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$1,566,890

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

$71,645

Return on Equity (pure cash flow return):

15.82%

Return on Equity with a 5% Capital Growth Rate:

30.02%

Return on Equity with a 7% Capital Growth Rate:

35.70%

Return on Equity with a 10% Capital Growth Rate:

44.22%

*approximate numbers

Building Type: Retail
Building Area: 3270m2

NLA: 1520m2
WALE: 2.5

How we helped this client

This was our client’s first purchase with Rethink Investing. They were looking to build a passive income so they could step back from work. This medical centre was perfect for them as they work in the industry themselves. To complete their passive income strategy, they are on the hunt for another asset of even greater value..

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