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Purchased
High growth location!
This is our client’s second purchase with Rethink Investing. They were looking for a high yielding commercial asset that would contribute to their passive income goals. After viewing a few assets we landed on this one due to the security of the lease, high growth location and strong yield for the market.
Purchase Details
Asking Price
3500000
Purchase Price
3150000
Deposit (assuming
70
% debt)
945000
Stamp Duty
154323
Building Report*
900
Solicitor Cost*
7000
Valuation*
3000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
3500000
Total Cash Required
1109223
Purchase Price + Purchasing Cost
3315223
Net Annual Cash Flow Return
214000
Net Yield on Property
6.79
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.46
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1110223
Cost of Loan
(Assume
3
% pa on
70
% debt)
66150
Return of Equity
(Pure cash flow return)
13.32
%
Return of Equity with a
5% Capital Growth Rate:
27.5
%
Return of Equity with a
7% Capital Growth Rate:
33.18
%
Return of Equity
10% Capital Growth Rate:
41.69
%
*approximate number
Key Highlights
• Building Area: 620m2
• NLA: 1,700m2
• Bank guarantee of $120,000
• Yearly increases of 3% or CPI, the greater of
• 3-year lease expires 21st February – March 2025 (recently renewed option)
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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