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Purchased
Premium location with an allied health tenant
This is our clients’ third property with Rethink Investing, which met all of their criteria and a minimum yield requirement of 6.50%. A low-maintenance asset that would be a “set and forget” property purchased specifically for their SMSF. This property comes with a medical tenant on a 5 + 5 year lease, clearing over $53,000pa in passive income after 100% outgoings and 70% mortgage costs at the current interest rates!
Purchase Details
Asking Price
1950000
Purchase Price
1725000
Deposit (assuming
70
% debt)
517500
Stamp Duty
86209.26
Building Report*
600
Solicitor Cost*
7000
Valuation*
3000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
1950000
Total Cash Required
614309.26
Purchase Price + Purchasing Cost
1821809.26
Net Annual Cash Flow Return
117000
Net Yield on Property
6.78
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.42
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
614309.26
Cost of Loan
(Assume
5.25
% pa on
70
% debt)
63393.75
Return of Equity
(Pure cash flow return)
8.73
%
Return of Equity with a
5% Capital Growth Rate:
22.77
%
Return of Equity with a
7% Capital Growth Rate:
28.38
%
Return of Equity
10% Capital Growth Rate:
36.81
%
*approximate number
Key Highlights
• Building Area: 154m2
• NLA: 154m2
• Lease = 5 + 5 years
• Total net income = $117,000
• Outgoings = 100% payable by the tenant
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