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Purchased
Metro industrial suburb!
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.
Purchase Details
Asking Price
1050000
Purchase Price
985000
Deposit (assuming
80
% debt)
197000
Stamp Duty
40944.48
Building Report*
600
Solicitor Cost*
6500
Valuation*
2500
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
Total Cash Required
247544.48
Purchase Price + Purchasing Cost
1035544.48
Net Annual Cash Flow Return
60000
Net Yield on Property
6.09
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.79
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
247544.48
Cost of Loan
(Assume
4.5
% pa on
80
% debt)
35460
Return of Equity
(Pure cash flow return)
9.91
%
Return of Equity with a
5% Capital Growth Rate:
29.81
%
Return of Equity with a
7% Capital Growth Rate:
37.77
%
Return of Equity
10% Capital Growth Rate:
49.7
%
*approximate number
Key Highlights
• Building Area: 236m2
• NLA: 236m2
• Industrial office over two levels
• Annual income: $60,000pa + outs + GST
• 5-year lease expires June 2026 with 1 x 5-year option
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