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Purchased

Metro industrial suburb!

  • Industrial office over two levels
  • Annual income: $60,000pa + outs + GST
  • 5-year lease expires June 2026 with 1 x 5-year option

Purchase Details

Asking Price

$1,050,000

Purchase Price

$985,000

Deposit (assuming 80% debt) - 20%

$197,000

Stamp Duty

$40,944.48

Building Report*

$600

Solicitor Costs

$6,500

Valuation

$2,500

Total Cash Required

$247,544.48

Purchase Price + Purchasing Costs

$1,035,544.48

Net Annual Cash Flow Return

$60,000

Net Yield on Property

6.09%

Net Yield Accounting for Purchase Costs

5.79%

Cash-On-Cash Returns

Deposit Needed = 20% + Costs:

$247,544.48

Cost of loan (assume 4.5% pa on 80% debt):

$35,460

Return on Equity (pure cash flow return):

9.91%

Return on Equity with a 5% Capital Growth Rate:

29.81%

Return on Equity with a 7% Capital Growth Rate:

37.77%

Return on Equity with a 10% Capital Growth Rate:

49.70%

*approximate numbers

Building Type: Industrial
Building Area: 236m2

NLA: 236m2
WALE: 5

How we helped this client

Rethink Investing found a sub $1M asset with strong fundamentals for our client’s first property purchase with us. A property that ticked all the boxes – based in a capital city metro, with +6% net yield, a long lease and CPI increases for solid rental growth in the short term.

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