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Purchased
Set-and-forget!
This is our client’s third purchase with Rethink Investing. They were looking to buy a set-and-forget style of investment to help them prepare for retirement. This purchase was perfect as it came with the security of a global brand that has been in operation since 1965 (Gold’s Gym) and a very expensive fit-out, which would make it very difficult for the tenant to move.
Purchase Details
Asking Price
4800000
Purchase Price
4250000
Deposit (assuming
70
% debt)
1275000
Stamp Duty
233178
Building Report*
900
Solicitor Cost*
8000
Valuation*
3500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
4800000
Total Cash Required
1520578
Purchase Price + Purchasing Cost
4495578
Net Annual Cash Flow Return
265000
Net Yield on Property
6.24
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.89
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1520578
Cost of Loan
(Assume
3
% pa on
70
% debt)
89250
Return of Equity
(Pure cash flow return)
11.56
%
Return of Equity with a
5% Capital Growth Rate:
25.53
%
Return of Equity with a
7% Capital Growth Rate:
31.12
%
Return of Equity
10% Capital Growth Rate:
39.51
%
*approximate number
Key Highlights
• Building Area: 1,335m2
• NLA: 4,430m2
• 12-year lease expires 2034
• Strong 6.24% net yield
• Total current net rent: $265,000 (after 100% of the outgoings)
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