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Purchased

Excited to share our latest acquisition—a premium childcare asset in Western Australia, secured for one of our long-term Rethink Investing clients!

At Rethink Investing, we consistently source premium commercial properties that align with our clients' investment strategies. This childcare facility exemplifies our commitment to offering high-yield, growth-oriented investments.

Strategically located in a rapidly growing region, this property not only promises robust returns with a 6.56% net yield, but also benefits from a secure tenant profile and favourable long-term prospects. With an annual net cash flow return of $203,317 and a purchase price of $3,100,000, this asset is primed for significant capital appreciation.

Purchase Details
Asking Price
3400000
Purchase Price
3100000
Deposit (assuming
60
% debt)
1240000
Stamp Duty
152000
Building Report*
1500
Solicitor Cost*
8000
Valuation*
3500
Other Costs*
69790
Other Fees* (Depreciation
report, bank fees)
3400000
Total Cash Required
1474790
Purchase Price + Purchasing Cost
3334790
Net Annual Cash Flow Return
203317
Net Yield on Property
6.56
%
Net Yield Accounting for
Purchasing Costs
6.1
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1474790
Cost of Loan
(Assume
6.25
% pa on
60
% debt)
116250
Return of Equity
(Pure cash flow return)
5.9
%
Return of Equity with a
5% Capital Growth Rate:
16.41
%
Return of Equity with a
7% Capital Growth Rate:
20.62
%
Return of Equity
10% Capital Growth Rate:
26.92
%
*approximate number

Key Highlights

  • Premium childcare asset
  • Strategically located in a rapidly expanding area
  • Secure investment with a 6.56% net yield
  • Strong cash-on-cash return potential, exceeding 16% with capital growth scenarios
  • Significant net annual cash flow of $203,317

Get in touch

If you’re interested in joining the lucrative world of commercial property, contact us now.

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