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Purchased

High performance industrial asset close to transport!

  • Net Return $54,750pa (+ Outgoings + GST)
  • Close proximity to CBD, road, sea and air transport
  • 7 year lease

Purchase Details

Asking Price

$950,000

Purchase Price

$920,000

Deposit (assuming 70% debt) - 30%

$184,000

Stamp Duty

$37,557

Building Report*

$450

Solicitor Costs

$4,500

Valuation

$2,500

Total Cash Required

$229,007

Purchase Price + Purchasing Costs

$965,007

Net Annual Cash Flow Return

$54,750

Net Yield on Property

5.95%

Net Yield Accounting for Purchase Costs

5.67%

Cash-On-Cash Returns

Deposit Needed = 30% + Costs:

$229,007

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

$18,400

Return on Equity (pure cash flow return):

15.87%

Return on Equity with a 5% Capital Growth Rate:

35.96%

Return on Equity with a 7% Capital Growth Rate:

43.99%

Return on Equity with a 10% Capital Growth Rate:

56.05%

*approximate numbers

Building Type: Industrial
Building Area: 219m2

NLA: 219m2
WALE: 7

How we helped this client

This property was recently secured for a valued Rethink Investing client. The industrial asset is located 16 radial kilometres to the CBD and provides direct access to all major arterials through the Gateway Motorway whilst being in close proximity to the Brisbane Airport and Port of Brisbane (Brisbane’s TradeCoast District). The tenant has signed on to a 7-year lease providing a stable cash flow and strong capital growth.

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