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Purchased
Showroom and warehouse!
This is our client’s 2nd purchase with Rethink Investing. They purchased a great industrial warehouse in Perth for their first purchase, and now they want to diversify with a property in Queensland that focuses on high yield. This asset was perfect as it came with a strong tenant, 7% net yield and a 5-year lease.
Purchase Details
Asking Price
3200000
Purchase Price
3000000
Deposit (assuming
70
% debt)
900000
Stamp Duty
153025
Building Report*
1500
Solicitor Cost*
8500
Valuation*
4000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
3200000
Total Cash Required
1067025
Purchase Price + Purchasing Cost
3167025
Net Annual Cash Flow Return
212180
Net Yield on Property
7.07
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.7
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1067025
Cost of Loan
(Assume
4.5
% pa on
70
% debt)
99750
Return of Equity
(Pure cash flow return)
10.54
%
Return of Equity with a
5% Capital Growth Rate:
24.59
%
Return of Equity with a
7% Capital Growth Rate:
30.22
%
Return of Equity
10% Capital Growth Rate:
38.55
%
*approximate number
Key Highlights
• Building Area: 871m2
• NLA: 4,138m2
• Annual income: $212,180pa + outs + GST
• Total net lettable area of 871sqm
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