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Purchased
Iconic hotel and public bar!
This is our client’s third property with Rethink Investing. So far they have a mix of industrial, office and now hospitality properties. They are looking to build a very large self-sustaining portfolio and this extremely high yielding asset will be the perfect addition to their portfolio.
Purchase Details
Asking Price
3400000
Purchase Price
2700000
Deposit (assuming
70
% debt)
810000
Stamp Duty
145493
Building Report*
1200
Solicitor Cost*
8500
Valuation*
4000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
3400000
Total Cash Required
969193
Purchase Price + Purchasing Cost
2859193
Net Annual Cash Flow Return
286000
Net Yield on Property
10.59
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
10
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
969193
Cost of Loan
(Assume
3
% pa on
70
% debt)
56700
Return of Equity
(Pure cash flow return)
19.16
%
Return of Equity with a
5% Capital Growth Rate:
30.05
%
Return of Equity with a
7% Capital Growth Rate:
34.41
%
Return of Equity
10% Capital Growth Rate:
40.95
%
*approximate number
Key Highlights
• Building Area: 2,023m2
• NLA: 2,052m2
• The property has a maximum capacity of approx 800+
• The income is so strong it would pay itself off in seven years
• Currently returning $286,000pa net
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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