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Purchased
High yielding medical practice
This was our valued client’s second property purchased with us. They were seeking the highest possible yield they could find in a medical investment, and this was quite a high-yield considering the current tight market. We searched Australia wide for three months before finding this ideal asset. Our client also lived overseas so they needed our help to carry out 100% of the due-diligence in which we found no faults in the asset, the lease, the numbers or the tenant. All around this was a very strong deal.
Purchase Details
Asking Price
2200000
Purchase Price
2000000
Deposit (assuming
70
% debt)
600000
Stamp Duty
102000
Building Report*
750
Solicitor Cost*
4500
Valuation*
3000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
2200000
Total Cash Required
707250
Purchase Price + Purchasing Cost
2107250
Net Annual Cash Flow Return
162900
Net Yield on Property
8.15
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
7.73
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
707250
Cost of Loan
(Assume
3
% pa on
70
% debt)
38500
Return of Equity
(Pure cash flow return)
17.59
%
Return of Equity with a
5% Capital Growth Rate:
31.73
%
Return of Equity with a
7% Capital Growth Rate:
37.38
%
Return of Equity
10% Capital Growth Rate:
45.87
%
*approximate number
Key Highlights
• Building Area: 520m2
• Land Area: 600m2
• $162,900 pa + GST + Outgoings
• Secure long-term tenant since 2000
• 3+3 year lease
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