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Purchased
Capital growth play!
This is our client’s third property with Rethink Investing. They are well on their way to reaching their passive income goals through high yielding commercial real estate. This industrial property provides not only a strong income but will also be a capital growth play.
Purchase Details
Asking Price
1800000
Purchase Price
1700000
Deposit (assuming
70
% debt)
510000
Stamp Duty
21230.3
Building Report*
900
Solicitor Cost*
7000
Valuation*
3500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
1800000
Total Cash Required
644703
Purchase Price + Purchasing Cost
1834703
Net Annual Cash Flow Return
104886
Net Yield on Property
6.17
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.72
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
644703
Cost of Loan
(Assume
3
% pa on
70
% debt)
35700
Return of Equity
(Pure cash flow return)
10.73
%
Return of Equity with a
5% Capital Growth Rate:
23.92
%
Return of Equity with a
7% Capital Growth Rate:
29.19
%
Return of Equity
10% Capital Growth Rate:
37.1
%
*approximate number
Key Highlights
• Building Area: 719m2
• NLA: 1,417m2
• 40 onsite carparks
• 2x tenants on 5 year leases
• Total current net rent: $104,886 pa
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If you’re interested in joining the lucrative world of commercial property, contact us now.
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