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Purchased
Multi-income property!
Our client was looking for a multi-income property to spread out the leasing risk. This 7 x tenancy asset was a good example of a diversified income. The property also has many avenues of value and potentials, such as strata titling, raising rents, increasing the WALE and even a small renovation on parts of the property to lift it to another level.
Purchase Details
Asking Price
2250000
Purchase Price
2100000
Deposit (assuming
70
% debt)
630000
Stamp Duty
108773
Building Report*
800
Solicitor Cost*
8500
Valuation*
3000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
2250000
Total Cash Required
751073
Purchase Price + Purchasing Cost
2221073
Net Annual Cash Flow Return
128500
Net Yield on Property
6.12
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.79
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
751073
Cost of Loan
(Assume
3
% pa on
70
% debt)
44100
Return of Equity
(Pure cash flow return)
11.24
%
Return of Equity with a
5% Capital Growth Rate:
25.22
%
Return of Equity with a
7% Capital Growth Rate:
30.81
%
Return of Equity
10% Capital Growth Rate:
39.2
%
*approximate number
Key Highlights
• Building Area: 1207m2
• NLA: 585m2
• 7 total tenancies, 100% tenanted
• Currently returning $128,500pa net
• Annual increases of 3% to 5%
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If you’re interested in joining the lucrative world of commercial property, contact us now.
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