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Purchased
A-Grade industrial and office investment property secured for one of our Rethink Investing Clients!
Purchase Details
Asking Price
10000000
Purchase Price
9700000
Deposit (assuming
65
% debt)
3395000
Stamp Duty
432070.37
Building Report*
2500
Solicitor Cost*
12500
Valuation*
7000
Other Costs*
207730
Other Fees* (Depreciation
report, bank fees)
report, bank fees)
10000000
Total Cash Required
4056800.37
Purchase Price + Purchasing Cost
10361800.37
Net Annual Cash Flow Return
697000
Net Yield on Property
7.19
%
Net Yield Accounting for
Purchasing Costs
Purchasing Costs
6.73
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
3395000
Cost of Loan
(Assume
6.25
% pa on
65
% debt)
394062.5
Return of Equity
(Pure cash flow return)
7.47
%
Return of Equity with a
5% Capital Growth Rate:
19.42
%
Return of Equity with a
7% Capital Growth Rate:
24.4
%
Return of Equity
10% Capital Growth Rate:
31.38
%
*approximate number
Key Highlights
• Well-established and significant Tasmanian tenants.
• Tenants pay all outgoings apart from property management.
• The 3,709m2 warehouse is newly built providing excellent depreciation benefits.
• Huge land holding of 10,092m2, only approx. 6km from Hobart’s CBD, underpinning medium to long-term capital growth for the asset.
• Tasmania has outperformed all other states in 12 out of the last 14 quarters (Commsec State of the States)
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