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Purchased

Entry-level Freehold Commercial Investment with a National Tenant

  • Location: Townsville
  • NET Annual income of $55,250 p.a + GST (this is after rental management and land tax)
  • 3+3+3 year lease with CPI increases
  • National Tenant

Purchase Details

Asking Price

$800,000

Purchase Price

$760,000

Deposit (assuming 65% debt) - 35%

$228,000

Stamp Duty

$29,917.42

Building Report*

$600

Solicitor Costs

$6,500

Valuation

$2,500

Total Cash Required

$265,517.42

Purchase Price + Purchasing Costs

$799,517.42

Net Annual Cash Flow Return

$55,250.00

Net Yield on Property

7.27%

Net Yield Accounting for Purchase Costs

6.91%

Cash-On-Cash Returns

Deposit Needed = 35% + Costs:

$267,517.42

Cost of loan (assume 6% pa on 65% debt):

$31,920.00

Return on Equity (pure cash flow return):

8.72%

Return on Equity with a 5% Capital Growth Rate:

22.93%

Return on Equity with a 7% Capital Growth Rate:

28.61%

Return on Equity with a 10% Capital Growth Rate:

37.13%

*approximate numbers

Building Type: Retail
Building Area: 515m2

Land Area: 800m2
WALE: 

Rethink Investing sourced, negotiated and secured this well located investment off-market for our valued client. This commercial asset has a national tenant with a long lease, providing a solid return on investment. At Rethink Investing, Australia’s largest commercial buyer’s agency, we focus on targeting Australia’s highest yielding commercial properties, with a strong emphasis on capital growth and value-add strategies. Our experienced team will guide you through the entire process, from start to finish, so that you can sit back and relax knowing that your investment is in safe hands. Invest with confidence and let us take care of the rest.



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