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Purchased
A-class building in the TradeCoast precinct!
with us. It ticked all the boxes in terms of yield, lease length, building quality and capital growth forecasts and is located in one of Brisbane’s most sought after and tightly held precincts ‘The TradeCoast precinct.’ Finding yields this high in an area of this quality is very rare. We purchased the property for $6,600,000 and the valuation replacement value is $11,800,000! The perfect set and forget investment.
Purchase Details
Asking Price
7000000
Purchase Price
6600000
Deposit (assuming
65
% debt)
2310000
Stamp Duty
384173
Building Report*
800
Solicitor Cost*
8500
Valuation*
4000
Other Costs*
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
7000000
Total Cash Required
2707473
Purchase Price + Purchasing Cost
6997473
Net Annual Cash Flow Return
400000
Net Yield on Property
6.06
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
5.72
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
2707473
Cost of Loan
(Assume
3
% pa on
65
% debt)
128700
Return of Equity
(Pure cash flow return)
10.02
%
Return of Equity with a
5% Capital Growth Rate:
22.21
%
Return of Equity with a
7% Capital Growth Rate:
27.08
%
Return of Equity
10% Capital Growth Rate:
34.4
%
*approximate number
Key Highlights
• Building Area: 3,004m2
• NLA: 3,783m2
• 5+5 year lease
• 6 month bank guarantee
• Total current net rent: $400,000pa (triple net)
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