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Prime Property In Melbourne

This high-yielding investment opportunity is located in Melbourne. The freehold commercial property features two thriving tenants: Genesis Gym, a dynamic enterprise boasting over 2,000 members, and a sought-after swim school with bookings scheduled months in advance.

These impressive tenancies ensure consistent income and security for our savvy investor client. Acquired exclusively off-market by Rethink Investing this exceptional asset outperforms the average 6% yield for similar investments with an outstanding 8.44% net return—evidence of its excellent value.

Purchase Details
Asking Price
8500000
Purchase Price
7750000
Deposit (assuming
60
% debt)
3100000
Stamp Duty
487485.5
Building Report*
1500
Solicitor Cost*
9500
Valuation*
7500
Other Fees* (Depreciation
report, bank fees)
Total Cash Required
3605985.5
Purchase Price + Purchasing Cost
8255985.5
Net Annual Cash Flow Return
654412
Net Yield on Property
8.44
%
Net Yield Accounting for
Purchasing Costs
7.93
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
3605985.5
Cost of Loan
(Assume
6
% pa on
60
% debt)
279000
Return of Equity
(Pure cash flow return)
10.41
%
Return of Equity with a
5% Capital Growth Rate:
21.16
%
Return of Equity with a
7% Capital Growth Rate:
25.46
%
Return of Equity
10% Capital Growth Rate:
31.9
%
*approximate number

Key Highlights

• Building Area: 2,220m2

• Land Area:6,000m2 (corner site)

• Net income of $654,412, (after 100% of outgoings including mgt fees and land tax)

• Constructed 2009, therefore offering depreciation benefits, and available well below replacement cost

• General residential zoning, indicating the potential for future residential development

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