Back to properties
Purchased
Prime corner position!
This was our clients’ first commercial purchase after purchasing PPOR, a purpose-built café/restaurant that was the perfect addition to their growing portfolio. We liked the hot spot location, long-standing tenant and prime corner position. They already have plans in place to add a second asset by the end of the year through Rethink Investing’s buyer’s agency.
Purchase Details
Asking Price
1120000
Purchase Price
1050000
Deposit (assuming
70
% debt)
315000
Stamp Duty
42752
Building Report*
500
Solicitor Cost*
5500
Valuation*
2500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
1120000
Total Cash Required
366252
Purchase Price + Purchasing Cost
1101252
Net Annual Cash Flow Return
64680
Net Yield on Property
6.16
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.87
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
366252
Cost of Loan
(Assume
3
% pa on
70
% debt)
22050
Return of Equity
(Pure cash flow return)
11.64
%
Return of Equity with a
5% Capital Growth Rate:
25.97
%
Return of Equity with a
7% Capital Growth Rate:
31.71
%
Return of Equity
10% Capital Growth Rate:
40.31
%
*approximate number
Key Highlights
• Building Area: 177m2
• NLA: 177m2
• 2 car spaces
• 5+5 year lease
• Currently returning $64,680pa net
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
Oops! Something went wrong while submitting the form.
More Properties
Discover more examples of our commercial properties transactions.
