Scott O'Neill

I've assumed a 3.5% interest rate.

Again, people might say, oh, that sounds low.

Average mortgage is still under 3% for commercial for this purchase.

so i've allowed a you know a few interest rate rises in that so we're talking a 24 grand or 24 500 interest cost so you minus 24 500 from 60k it's leaving you 35 500 income per year which equates to 682 dollars per week clear that's after every single cost including your interest

So it's nearly a $700,000 per week, a little bit of pocket money for taking that $700,000 out loan.

So it's a very good return on your money.

And you remember, if you're buying a million-dollar residential property, you're probably negatively geared $10,000.

So we're not negatively geared.

We're positive $35,000 a year.

So it's a big difference in cash flow.

Good morning, Craig.

Yes, it is.

Everyone's back from Anzac Day and the long weekend with Easter.

So yeah, a lot of work to do, really, but it's good.

Well, this is a classic industrial property.

But what was unique about this property was there's four units on it.

So it's on one title currently, but there was four units.

The total purchase price for this was $4.15 million.

But if you split the property up via a strata title method, it would have created about a $750,000 equity uplift.

And that was really not doing much other than some council paperwork and getting a town planner out and whatnot.