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Purchased
Set and Forget!
This is a “Bunning’s” like strength of a property! Purchased off-market for a Rethink investing client. This is our clients second purchase with Rethink Investing. They were looking for a “set and forget” style commercial investment. This one has had the same tenant for over 15 years and they don’t look to be moving anytime soon. Hence why our client felt comfortable proceeding with this investment.
Purchase Details
Asking Price
6500000
Purchase Price
6075000
Deposit (assuming
70
% debt)
1822500
Stamp Duty
305545
Building Report*
900
Solicitor Cost*
9000
Valuation*
5000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
6500000
Total Cash Required
2446695
Purchase Price + Purchasing Cost
6395445
Net Annual Cash Flow Return
360810
Net Yield on Property
5.94
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.64
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2446695
Cost of Loan
(Assume
3
% pa on
70
% debt)
127575
Return of Equity
(Pure cash flow return)
8.29
%
Return of Equity with a
5% Capital Growth Rate:
20.71
%
Return of Equity with a
7% Capital Growth Rate:
25.67
%
Return of Equity
10% Capital Growth Rate:
33.12
%
*approximate number
Key Highlights
• Building Area: 2,400m2
• NLA: 6,128m2
• 5+5+5 year lease
• Annual income of $350,000 pa + outs + GST
• Tenanted by Australia’s ninth largest company (Wesfamers-owned)
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