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Purchased
Neighbourhood centre with proven record of capital growth
The property’s purchase price was $2,585,000, boasting an impressive 6.72% net yield. What’s more, this gem has a proven track record of remarkable capital growth. With all four tenants operating in essential services, it’s a recession-proof, set-and-forget asset.
Our journey from engagement to settlement spanned six months, and it wouldn’t have been possible without the collaborative efforts of our exceptional team and the unwavering trust our client placed in us.
Purchase Details
Asking Price
2800000
Purchase Price
2565469
Deposit (assuming
65
% debt)
893912.15
Stamp Duty
137832.49
Building Report*
1200
Solicitor Cost*
8000
Valuation*
3000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
2800000
Total Cash Required
1047946.64
Purchase Price + Purchasing Cost
2715501.49
Net Annual Cash Flow Return
173782
Net Yield on Property
6.77
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.4
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1047946.64
Cost of Loan
(Assume
6.25
% pa on
65
% debt)
104222.18
Return of Equity
(Pure cash flow return)
6.64
%
Return of Equity with a
5% Capital Growth Rate:
18.88
%
Return of Equity with a
7% Capital Growth Rate:
23.77
%
Return of Equity
10% Capital Growth Rate:
31.12
%
*approximate number
Key Highlights
• $2,585,000, boasting an impressive 6.72% net yield
• All four tenants operating in essential services
• A recession-proof, set-and-forget asset
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If you’re interested in joining the lucrative world of commercial property, contact us now.
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