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Purchased
Solid cash flow + capital growth!
Secured by the Rethink Investing team for our valued client, this 1,550m2 freehold lot is 12km from the CBD with an established national tenant in place. This was our client’s second commercial property purchased with us. They were looking for a passive income investment for their SMSF which would also be exposed to some strong capital growth.
This freehold asset fit their budget perfectly. Rethink Investing helped secure the investment and carry out all aspects of the due-diligence and the client is keen to work on a third commercial investment.
Purchase Details
Asking Price
2150333
Purchase Price
2000000
Deposit (assuming
70
% debt)
600000
Stamp Duty
102653
Building Report*
600
Solicitor Cost*
5500
Valuation*
2000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
2150333
Total Cash Required
710753
Purchase Price + Purchasing Cost
2110753
Net Annual Cash Flow Return
127600
Net Yield on Property
6.38
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.05
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
710753
Cost of Loan
(Assume
3
% pa on
70
% debt)
42000
Return of Equity
(Pure cash flow return)
12.04
%
Return of Equity with a
5% Capital Growth Rate:
26.11
%
Return of Equity with a
7% Capital Growth Rate:
31.74
%
Return of Equity
10% Capital Growth Rate:
40.18
%
*approximate number
Key Highlights
• Building Area: 1,550m2
• NLA: 700m2
• National tenant
• 700m2 Net Lettable Area
• 1,550m2 Total Land Area
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