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Purchased
Rental income and equity!
This is our valued client’s first purchase with Rethink Investing. They were looking for an industrial asset to add to their portfolio. This property had the bonus of some upside in both rental income and equity through strata titling from one title to four. This would have the outcome of a $750,000 equity uplift!
Purchase Details
Asking Price
4500000
Purchase Price
4150000
Deposit (assuming
70
% debt)
1245000
Stamp Duty
234233
Building Report*
900
Solicitor Cost*
8000
Valuation*
4000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
4500000
Total Cash Required
1492133
Purchase Price + Purchasing Cost
4397133
Net Annual Cash Flow Return
233000
Net Yield on Property
5.61
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.3
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1492133
Cost of Loan
(Assume
3
% pa on
70
% debt)
87150
Return of Equity
(Pure cash flow return)
9.77
%
Return of Equity with a
5% Capital Growth Rate:
23.68
%
Return of Equity with a
7% Capital Growth Rate:
29.24
%
Return of Equity
10% Capital Growth Rate:
37.59
%
*approximate number
Key Highlights
• Building Area: 1,550m2
• NLA: 3,250m2
• 4x industrial units on one title
• Less than 5-years old construction, good depreciation
• 7.5m internal height, container height roller door access to each unit
Get in touch
If you’re interested in joining the lucrative world of commercial property, contact us now.
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