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Purchased
Multi-tenant freehold asset!
This is our client's 1st property with Rethink Investing. Our client was looking for a high-yielding freehold asset, and after reviewing several assets, this is the one they landed on. Even after a 5% mortgage has been taken out of the cash flow numbers, the passive income remaining is an impressive $187,358 per annum.
Purchase Details
Asking Price
4050000
Purchase Price
3875000
Deposit (assuming
65
% debt)
1356250
Stamp Duty
218266.56
Building Report*
1000
Solicitor Cost*
9500
Valuation*
4500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
4050000
Total Cash Required
1589516.56
Purchase Price + Purchasing Cost
4108266.56
Net Annual Cash Flow Return
313296
Net Yield on Property
8.09
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
7.63
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1589516.56
Cost of Loan
(Assume
5
% pa on
65
% debt)
125937.5
Return of Equity
(Pure cash flow return)
11.79
%
Return of Equity with a
5% Capital Growth Rate:
23.98
%
Return of Equity with a
7% Capital Growth Rate:
28.85
%
Return of Equity
10% Capital Growth Rate:
36.17
%
*approximate number
Key Highlights
• Building Area: 1,935m2
• NLA: 2,552m2
• 11 tenants
• Annual income: $313,296pa + outs + GST
• Multi-storey zoning allowing for future development opportunities
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