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Two industrial units, one title!

This high yielding Brisbane asset was recently secured by Rethink investing before it was formally advertised. This property is actually two separate industrial units under one title, which gives greater flexibility to tenants and you as the owner. It has recently had solar panels installed and all windows tinted.

Our client’s first commercial investment, they were looking for a low risk asset which came with a secure tenant and an above average yield. Our clients were overseas throughout the entire purchasing process so we made things possible by acting on their behalf on all aspects of the due-diligence.

Purchase Details
Asking Price
1250000
Purchase Price
1167000
Deposit (assuming
70
% debt)
350100
Stamp Duty
44509.5
Building Report*
550
Solicitor Cost*
5500
Valuation*
2000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
1250000
Total Cash Required
402659.5
Purchase Price + Purchasing Cost
1219559.5
Net Annual Cash Flow Return
74240
Net Yield on Property
6.36
%
Net Yield Accounting for
Purchasing Costs
6.09
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
402659.5
Cost of Loan
(Assume
3
% pa on
70
% debt)
24507
Return of Equity
(Pure cash flow return)
12.35
%
Return of Equity with a
5% Capital Growth Rate:
26.84
%
Return of Equity with a
7% Capital Growth Rate:
32.64
%
Return of Equity
10% Capital Growth Rate:
41.33
%
*approximate number

Key Highlights

• Building Area: 467m2

• NLA: 467m2

• Unit A Breakdown: 237sqm – 112sqm office & 125sqm warehouse

• Unit B Breakdown: 227sqm – 126sqm office & 101sqm warehouse

• $74,240 Net + GST + Outgoings

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

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