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Purchased
Clients enjoy passive income through this commercial property at an entry level price point
We recently secured this commercial 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 Fees* (Depreciation
report, bank fees)
report, bank fees)
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
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