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Multi-tenant Freehold Investment

This 3,825m2 freehold property offers two lots, providing increased liquidity and reduced risk. It has a great yield for its quality and is located in an area with a low vacancy rate. The property has a long history of high occupancy and fast-filling vacancies.

As a result, Rethink Investing secured this property for our valued client for just over $2m. During the due diligence, we found that the income was higher than what was advertised, boosting the net yield to an impressive 7.48% after all costs.

Purchase Details
Asking Price
2300000
Purchase Price
2080000
Deposit (assuming
65
% debt)
728000
Stamp Duty
107994.46
Building Report*
1500
Solicitor Cost*
12000
Valuation*
5000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
2300000
Total Cash Required
854494.46
Purchase Price + Purchasing Cost
2206494.46
Net Annual Cash Flow Return
155510.92
Net Yield on Property
7.48
%
Net Yield Accounting for
Purchasing Costs
7.05
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
854494.46
Cost of Loan
(Assume
6
% pa on
65
% debt)
81120
Return of Equity
(Pure cash flow return)
8.71
%
Return of Equity with a
5% Capital Growth Rate:
20.88
%
Return of Equity with a
7% Capital Growth Rate:
25.75
%
Return of Equity
10% Capital Growth Rate:
33.05
%
*approximate number

Key Highlights

• Building Area: 802m2

• Land Area: 3,825m2

• Diverse Income Profile: 11 retail and office tenancies

• Net income of $155,510.92, (after 100% of outgoings including mgt fees and land tax)

• Main road location with easy parking

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