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Purchased

Rare Melbourne Metro Childcare Centre with a 6% net yield

 

Key Highlights
• A secure investment opportunity
• Newly built childcare centre with a 15-year lease
• Prime location close to six schools within a three-KM radius
• Excellent depreciation benefits and strong returns
• 21km north of the CBD
• Situated on an impressive 2,146m² corner site
• Neighbours Greenvale Shopping Centre

Purchase Details

Asking Price

$6,400,000

Purchase Price

$5,750,000

Deposit (assuming 70% debt) - 30%

$2,300,000

Stamp Duty

$357,494

Building Report*

$2,000

Solicitor Costs

$10,500

Valuation

$5,000

Total Cash Required

$2,800,169.50

Purchase Price + Purchasing Costs

$6,250,169.50

Net Annual Cash Flow Return

$345,400

Net Yield on Property

6.00%

Net Yield Accounting for Purchase Costs

5.52%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$2,797,169.50

Cost of loan (assume 6.5% pa on 70% debt):

$224,250

Return on Equity (pure cash flow return):

4.32%

Return on Equity with a 5% Capital Growth Rate:

14.60%

Return on Equity with a 7% Capital Growth Rate:

18.71%

Return on Equity with a 10% Capital Growth Rate:

24.87%

*approximate numbers

Building Type: Childcare

WALE: XXX Years 

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