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Purchased

Prime Property In Melbourne

  • Net income of $654,412, (after 100% of outgoings including mgt fees and land tax)
  • Constructed 2009, therefore offering depreciation benefits, and available well below replacement cost
  • General residential zoning, indicating the potential for future residential development

Purchase Details

Asking Price

$8,500,000

Purchase Price

$7,750,000

Deposit (assuming 60% debt) - 40%

$3,100,000

Stamp Duty

$487,485.50

Building Report*

$1,500

Solicitor Costs

$9,500

Valuation

$7,500

Total Cash Required

$3,605,985.50

Purchase Price + Purchasing Costs

$8,255,985.50

Net Annual Cash Flow Return

$654,412

Net Yield on Property

8.44%

Net Yield Accounting for Purchase Costs

7.93%

Cash-On-Cash Returns

Deposit Needed = 40% + Costs:

$3,605,985.50

Cost of loan (assume 6% pa on 60% debt):

$279,000

Return on Equity (pure cash flow return):

10.41%

Return on Equity with a 5% Capital Growth Rate:

21.16%

Return on Equity with a 7% Capital Growth Rate:

25.46%

Return on Equity with a 10% Capital Growth Rate:

31.90%

*approximate numbers

Building Type: Retail
Building Area: 2,220m2

Land Area:6,000m2 (corner site)
WALE:

This high-yielding investment opportunity is located in Melbourne. The freehold commercial property features two thriving tenants: Genesis Gym, a dynamic enterprise boasting over 2,000 members, and a sought-after swim school with bookings scheduled months in advance. These impressive tenancies ensure consistent income and security for our savvy investor client. Acquired exclusively off-market by Rethink Investing this exceptional asset outperforms the average 6% yield for similar investments with an outstanding 8.44% net return—evidence of its excellent value.

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