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Purchased
Rental income and equity!
This was our clients first property. They were after a multi-tenant industrial asset to spread out their income risk. This WA asset was the perfect combination of low risk, upside and being within their budget.
Purchase Details
Asking Price
1450000
Purchase Price
1630000
Deposit (assuming
70
% debt)
489000
Stamp Duty
75753
Building Report*
900
Solicitor Cost*
8000
Valuation*
3000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
1450000
Total Cash Required
576653
Purchase Price + Purchasing Cost
1717653
Net Annual Cash Flow Return
93000
Net Yield on Property
5.71
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.41
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
576653
Cost of Loan
(Assume
3
% pa on
70
% debt)
34230
Return of Equity
(Pure cash flow return)
10.19
%
Return of Equity with a
5% Capital Growth Rate:
24.32
%
Return of Equity with a
7% Capital Growth Rate:
29.98
%
Return of Equity
10% Capital Growth Rate:
38.46
%
*approximate number
Key Highlights
• Building Area: 980m2
• NLA: 2,100m2
• 3x industrial units on one title
• 2 director guarantees in the lease
• Annual increases CPI (Perth 5.7% ABS 2021)
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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