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Purchased
Rare Melbourne Metro Childcare Centre with a 6% net yield
Purchase Details
Asking Price
6400000
Purchase Price
5750000
Deposit (assuming
70
% debt)
2300000
Stamp Duty
357494
Building Report*
2000
Solicitor Cost*
10500
Valuation*
5000
Other Costs*
699175.5
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
6400000
Total Cash Required
2800169.5
Purchase Price + Purchasing Cost
6250169.5
Net Annual Cash Flow Return
345400
Net Yield on Property
6
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.52
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2797169.5
Cost of Loan
(Assume
6.5
% pa on
70
% debt)
224250
Return of Equity
(Pure cash flow return)
4.32
%
Return of Equity with a
5% Capital Growth Rate:
14.6
%
Return of Equity with a
7% Capital Growth Rate:
18.71
%
Return of Equity
10% Capital Growth Rate:
24.87
%
*approximate number
Key Highlights
• A secure investment opportunity
• Newly built childcare centre with a 15-year lease
• Prime location close to six schools within a three-KM radius
• Excellent depreciation benefits and strong returns
• 21km north of the CBD• Situated on an impressive 2,146m² corner site
• Neighbours Greenvale Shopping Centre
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