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A Retail Commercial investment opportunity in Victoria

Acquisition of an exclusive retail property for a high-net-worth client! This prime commercial asset features a secure regional investment opportunity located in Ararat, Victoria.

As a first-time investor of Rethink, our client sought a diverse property with long-term growth. The property comprises a spacious highway site leased to the reputable home improvement giant, Mitre 10, ensuring a stable income stream. Spanning 2,768m2 with excellent street frontage, it stands adjacent to national retailers and new developments, including a childcare centre and fire station, enhancing its appeal. With a land area of 7,945m2, this property promises robust long-term growth potential.

Purchase Details
Asking Price
3200000
Purchase Price
3000000
Deposit (assuming
65
% debt)
1050000
Stamp Duty
87000
Building Report*
2000
Solicitor Cost*
15000
Valuation*
10000
Other Fees* (Depreciation
report, bank fees)
67700
Total Cash Required
1231700
Purchase Price + Purchasing Cost
3181700
Net Annual Cash Flow Return
210000
Net Yield on Property
7
%
Net Yield Accounting for
Purchasing Costs
6.6
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1231700
Cost of Loan
(Assume
6.25
% pa on
65
% debt)
121875
Return of Equity
(Pure cash flow return)
7.17
%
Return of Equity with a
5% Capital Growth Rate:
19.33
%
Return of Equity with a
7% Capital Growth Rate:
24.2
%
Return of Equity
10% Capital Growth Rate:
31.51
%
*approximate number

Key Highlights

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