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Purchased
7 year lease to multinational tenant!
This was our client’s second purchase with Rethink Investing. They were looking for an investment with a long secure lease to help facilitate lending. After 100% of the mortgage and outgoings were accounted for, this solid commercial investment clears them nearly $700 per week in passive income.
Purchase Details
Asking Price
1200000
Purchase Price
1052000
Deposit (assuming
70
% debt)
315600
Stamp Duty
45866
Building Report*
600
Solicitor Cost*
5500
Valuation*
2000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
1200000
Total Cash Required
369566
Purchase Price + Purchasing Cost
1105966
Net Annual Cash Flow Return
55700
Net Yield on Property
5.29
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.04
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
369566
Cost of Loan
(Assume
3
% pa on
70
% debt)
22092
Return of Equity
(Pure cash flow return)
9.09
%
Return of Equity with a
5% Capital Growth Rate:
23.33
%
Return of Equity with a
7% Capital Growth Rate:
29.02
%
Return of Equity
10% Capital Growth Rate:
37.56
%
*approximate number
Key Highlights
• Building Area: 150m2
• NLA: 150m2
• Tenant option in place to November 2035
• $55,700 net pa
• Security with $37,000 bank guarantee
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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