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Large freehold retail asset

This highly exposed corner site is situated on a major thoroughfare with 22,306 vehicles passing daily. With four quality tenants in place, this asset will give our client a high level of income security. The investment clears over $167,000pa in passive income for the new owner.

This is after 100% of the outgoings and 65% mortgage costs at the current interest rates! This is our client’s first property with Rethink Investing. They were looking for a high-yielding property to help build passive income. This large freehold asset was exactly what our clients were looking for. Having multiple tenants diversifies their income risk, which was a big positive for them.

Purchase Details
Asking Price
5000000
Purchase Price
4750000
Deposit (assuming
65
% debt)
1662500
Stamp Duty
271991.2
Building Report*
1200
Solicitor Cost*
8500
Valuation*
4000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
5000000
Total Cash Required
1948191.2
Purchase Price + Purchasing Cost
5035691.2
Net Annual Cash Flow Return
329108.81
Net Yield on Property
6.93
%
Net Yield Accounting for
Purchasing Costs
6.54
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
1948191.2
Cost of Loan
(Assume
5.25
% pa on
65
% debt)
162093.75
Return of Equity
(Pure cash flow return)
8.57
%
Return of Equity with a
5% Capital Growth Rate:
20.76
%
Return of Equity with a
7% Capital Growth Rate:
25.64
%
Return of Equity
10% Capital Growth Rate:
32.95
%
*approximate number

Key Highlights

• Building Area: 1,257m2

• NLA: 3,077m2

• Net income: $329,108.81

• Diverse tenancy mix

• 41 parking bays

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