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Purchased
High yielding industrial asset in Brisbane
We recently secured this incredible industrial asset for our valued client at the entry level price of $445,000. The property will produce over $400 per week in passive income after 100% of the outgoings (including the mortgage). This was our client's second purchase with Rethink Investing. We liked this property because of the yield and the location being in a middle ring suburb of Brisbane. There are also some good upsides from the ability to raise the rent once this lease is over.
Purchase Details
Asking Price
510000
Purchase Price
445000
Deposit (assuming
70
% debt)
133500
Stamp Duty
8214
Building Report*
700
Solicitor Cost*
4000
Valuation*
2000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
510000
Total Cash Required
148414
Purchase Price + Purchasing Cost
459914
Net Annual Cash Flow Return
30000
Net Yield on Property
6.74
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.52
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
148414
Cost of Loan
(Assume
3
% pa on
70
% debt)
9345
Return of Equity
(Pure cash flow return)
13.92
%
Return of Equity with a
5% Capital Growth Rate:
28.91
%
Return of Equity with a
7% Capital Growth Rate:
34.91
%
Return of Equity
10% Capital Growth Rate:
43.9
%
*approximate number
Key Highlights
• Building Area: 305m2
• Land Area: 305m2
• 6.7% net income + growth
• 5 year lease
• Food related business (essential service)
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