No items found.

Entry-level commercial deal

This is our clients’ first purchase with Rethink Investing. The property was purchased without a tenant in place, which should be noted is outside our standard process. However, with our knowledge of the leasing market, we were confident that a tenant would be found within months.

The great news was found within weeks! Resulting in an almost 8% yield in Brisbane. The capitalisation rate of this local market is about 6.5%, indicating we have purchased the asset 23% below market value. A lovely result for our client!

Purchase Details
Asking Price
800000
Purchase Price
700000
Deposit (assuming
70
% debt)
210000
Stamp Duty
26982.1
Building Report*
6000
Solicitor Cost*
5000
Valuation*
2500
Other Costs*
Other Fees* (Depreciation
report, bank fees)
800000
Total Cash Required
250482.1
Purchase Price + Purchasing Cost
740482.1
Net Annual Cash Flow Return
55000
Net Yield on Property
7.86
%
Net Yield Accounting for
Purchasing Costs
7.43
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
250482.1
Cost of Loan
(Assume
5.75
% pa on
70
% debt)
28175
Return of Equity
(Pure cash flow return)
10.71
%
Return of Equity with a
5% Capital Growth Rate:
24.68
%
Return of Equity with a
7% Capital Growth Rate:
30.27
%
Return of Equity
10% Capital Growth Rate:
38.66
%
*approximate number

Key Highlights

• Building Area: 143m2

• Land Area: 304m2

• Annual income of $55,000pa net + GST

• Ideal Loganholme location, situated between Brisbane and the Gold Coast

• Modern freehold retail/showroom property

Get in touch

If you’re interested in joining the lucrative world of commercial property, contact us now.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

More Properties

Discover more examples of our commercial properties transactions.