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Purchased
Childcare Commercial
This is our clients 1st purchase with Rethink Investing. They were looking for a recession-proof asset with a good yield. We were lucky enough to find them the highest yielding childcare in Australia! This deal was secured off-market by us for our valued client.
Purchase Details
Asking Price
2800000
Purchase Price
2400000
Deposit (assuming
65
% debt)
840000
Stamp Duty
127649.5
Building Report*
900
Solicitor Cost*
7500
Valuation*
3500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
2800000
Total Cash Required
979549.5
Purchase Price + Purchasing Cost
2539549.5
Net Annual Cash Flow Return
159681.54
Net Yield on Property
6.65
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.29
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
979549.5
Cost of Loan
(Assume
6
% pa on
65
% debt)
93600
Return of Equity
(Pure cash flow return)
6.75
%
Return of Equity with a
5% Capital Growth Rate:
19
%
Return of Equity with a
7% Capital Growth Rate:
23.9
%
Return of Equity
10% Capital Growth Rate:
31.25
%
*approximate number
Key Highlights
• Building Area: 619m2
• Land Area: 1,793m2
• NET Annual income of $159,681 p.a + GST (after rental management and land tax)
• Lease Term – 11-year lease to ASX listed G8 Education – 78 place childcare centre
• Increases – Annual increases (The Greater of CPI or 3%)
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