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Purchased
Sit back and enjoy the passive income
We recently secured this property for one of our valued clients. This bite sized investment will produce the new owner a passive income of $344 per week even after the mortgage and 100% of outgoings and land tax have been accounted for, plus increases of 3% and fixed rental increases annually. Industrial assets like this are in extremely high demand and we found this one off-market for our client saving them on price due to not having to compete with other buyers.
Purchase Details
Asking Price
500000
Purchase Price
467000
Deposit (assuming
70
% debt)
140100
Stamp Duty
9058
Building Report*
700
Solicitor Cost*
4000
Valuation*
2000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
500000
Total Cash Required
155858
Purchase Price + Purchasing Cost
482758
Net Annual Cash Flow Return
28000
Net Yield on Property
6
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.8
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
155858
Cost of Loan
(Assume
3
% pa on
70
% debt)
9807
Return of Equity
(Pure cash flow return)
11.67
%
Return of Equity with a
5% Capital Growth Rate:
26.65
%
Return of Equity with a
7% Capital Growth Rate:
32.65
%
Return of Equity
10% Capital Growth Rate:
41.64
%
*approximate number
Key Highlights
• Building Area: 113m2
• Land Area: 147m2
• 6% net income + growth
• 2+2 year lease
• Entry level price point
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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