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Rare medical asset with long-term upside

This was a rare chance to purchase an entry-level freehold investment off-market. The property is located in an area surrounded by many of the biggest brands (McDonalds, Aldi, Woolworths, Hungry Jacks, Big W, Pizza Hut, KFC, etc.)

We believe this investment is under-rented, which implies long-term upside. Our Australian clients living abroad sought a secure, low-maintenance investment. This cost-effective freehold commercial property was ideal, as the rents were below market value, providing potential for increased returns when the lease expires.

Purchase Details
Asking Price
1225000
Purchase Price
1150000
Deposit (assuming
70
% debt)
345000
Stamp Duty
50872
Building Report*
1200
Solicitor Cost*
6500
Valuation*
1500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
1225000
Total Cash Required
405072
Purchase Price + Purchasing Cost
1210072
Net Annual Cash Flow Return
72100
Net Yield on Property
6.27
%
Net Yield Accounting for
Purchasing Costs
5.96
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
405072
Cost of Loan
(Assume
6
% pa on
70
% debt)
48300
Return of Equity
(Pure cash flow return)
5.88
%
Return of Equity with a
5% Capital Growth Rate:
20.07
%
Return of Equity with a
7% Capital Growth Rate:
25.75
%
Return of Equity
10% Capital Growth Rate:
34.27
%
*approximate number

Key Highlights

• Building Area: 340m2

• Land Area: 832m2

• Net annual income of $72,100p.a + GST (this is after rental management and land tax)

• High levels of daily vehicular traffic

• New fit-out completed 2021

• 3+3+3 year net lease

Get in touch

If you’re interested in joining the lucrative world of commercial property, contact us now.

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