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Purchased
Off-market purchase with solid investment returns!
This ‘Total Tools’ investment was recently secured off-market for a valued Rethink Investing client. This was a unique opportunity to secure an ‘A’ class building with an ‘A’ class tenant off-market! Make no mistake if this property was online there would be 100+ buyers competing heavily for it. Properties with tenants of this quality on 5 year leases sell well under 5% yields at the auction houses these days. Only Rethink Investing can deliver you properties like this.
Purchase Details
Asking Price
2600000
Purchase Price
2500000
Deposit (assuming
70
% debt)
750000
Stamp Duty
133250
Building Report*
800
Solicitor Cost*
5000
Valuation*
2500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
2600000
Total Cash Required
891550
Purchase Price + Purchasing Cost
2641550
Net Annual Cash Flow Return
157900
Net Yield on Property
6.32
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.98
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
891550
Cost of Loan
(Assume
3
% pa on
70
% debt)
52500
Return of Equity
(Pure cash flow return)
12.8
%
Return of Equity with a
5% Capital Growth Rate:
26.82
%
Return of Equity with a
7% Capital Growth Rate:
32.43
%
Return of Equity
10% Capital Growth Rate:
40.84
%
*approximate number
Key Highlights
• Building Area: 2567m2
• NLA: 1100m2
• ‘A’ class building with an ‘A’ class tenant
• Reliable income from long 5+5+5 year lease
• 2567m2 freehold corner block
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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