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West End, QLD
How Unikorn helped owners of a mixed development unit acquire a net rental yield of 10.19% annually
Property highlights
Potential Capital Growth
The property exhibits strong potential for capital growth, with conservative estimates projecting values of $630,000 to $660,000. Its location in the vibrant suburb of West End positions it for appreciation over time, making it an attractive investment opportunity.
Net Rent and Yield
With a net rent of $61,154.38 per annum, the property offers a high yield of 10.19%. This favourable return on investment relative to the purchase price signifies its income-generating potential and attractiveness to investors seeking robust cash flow.
Property Location
Nestled in the sought-after suburb of West End, QLD, the property enjoys a prime location within a thriving community. Its proximity to amenities, transport links, and commercial centres enhances its appeal to tenants and investors alike, contributing to its long-term value.
Quick facts and figures
Purchase price
$600,000
Deposit
$210,000
Costs
$39,600
Net rent
$61,154.38
Rental yield (Rental/Price)
10.19%
The results
Unikorn was able to help the owners of this property secure the following results:
- A total positive cashflow of $37,793.38
- Cash on cash return of 15.14%, indicating strong financial performance relative to the initial cash investment.
- Managed to lower the purchasing price of the property, from its original valuation price of $639,600 to $600,000.
- Established a favourable yield of 10.19%, demonstrating the property’s income-generating potential relative to its purchase price.
- Implemented strategic finance with a 65% loan-to-value ratio, optimising leverage while minimising cash outlay
- Demonstrated strong investment potential, with favourable cashflow, rental yield, and prospects for capital appreciation.
Conclusion
In summary, Unikorn played a pivotal role in helping the owners of the mixed development unit at 57 Stagpole St, West End, QLD, achieve remarkable financial success, boasting an impressive net rental yield of 10.19% annually.
The property was acquired for $600,000, requiring a cash investment of $249,600, including additional costs. Despite initial hurdles, such as managing mixed tenancies and navigating financial complexities, strategic solutions were implemented to optimise the property's income-generating potential and minimise expenses.
Through thorough market analysis and strategic planning, Unikorn devised tailored solutions to maximise the property's profitability. Tenant optimisation, value-added improvements, vacancy reduction strategies, expense management, lease structuring, asset repositioning, and market analysis were key strategies employed to enhance the property's performance.
The results of these efforts were remarkable. The property achieved a positive cashflow of $37,793.38, yielding a strong cash-on-cash return of 15.14%. Additionally, it demonstrated significant potential for capital growth, with projected valuations reaching $660,000, indicating a substantial return on equity. Furthermore, the property's rental yield of 10.19% showcased its income-generating potential relative to its purchase price.
With a loan-to-value ratio of 65%, Unikorn minimised cash outlay, further enhancing the property's financial performance. Overall, Unikorn's expertise in property management, market analysis, and negotiation proved instrumental in achieving these outstanding results, establishing the property as a lucrative investment opportunity with promising prospects for long-term financial growth and stability.
WE ARE SPECIALISTS IN UPLIFT AND VALUE ADDITION DEALS AND DEALS WITH DEVELOPMENTAL POTENTIAL
Higher Yield
6% - 10% on average (depending on area and risk)
Diversified Portfolio
Portfolio design is the key to long-term financial stability
Hassle-Free
You can still borrow even if serviceability is tapped out.
Lower Costs
Lower costs vs. residential + less things to manage
Set & Forget
Tenant pays all outgoings allowing you to set & forget
Unikorn’s solutions
Every client—whether new or experienced—starts with a strategy session with the Unikorn team to understand the investor’s long-term financial goals, budgetary requirements and overall preferences in their commercial property selection. Upon assessing the investor’s requirements, we devised a long-term and effective strategy to help the investor maximise their property earning potential and minimise expenses. Our solutions included:
Negotiation Expertise
Unikorn leveraged its negotiation skills to secure favourable terms for the property, including a purchase price of $600,000. Their ability to negotiate effectively contributed to maximising value for the investor while ensuring the affordability of the investment.
Cost Savings
Through meticulous analysis and negotiation, Unikorn facilitated cost savings in various aspects of the purchase process. For instance, they helped minimise stamp duty costs to $20,025.00 and kept solicitor/legal costs at $5,000, reducing the overall cash required for the investment.
Tailored Financial Solutions
Unikorn provided tailored financial solutions to optimise the financing structure of the investment. By structuring a loan-to-value ratio (LVR) of 65% and securing a loan amount of $390,000, they enabled the investor to leverage financing effectively while minimising the initial cash outlay.
Comprehensive Market Analysis
Unikorn conducted a comprehensive market analysis to assess the property's potential for capital growth and rental yield. This analysis informed the investor's decision-making process, ensuring alignment with their investment objectives and maximising the property's earning potential.
Streamlined Acquisition Process
Unikorn facilitated a streamlined acquisition process, guiding the investor through each stage from property selection to settlement. Their expertise and support ensured a seamless transaction, minimising risks and uncertainties for the investor.
Diversified Investment Portfolio
By identifying a property with mixed tenancies in West End, QLD, Unikorn helped the investor diversify their investment portfolio. This diversification strategy enhances income stability and mitigates risk, providing the investor with a well-rounded investment opportunity.
Why work with Unikorn
When it comes to building generational wealth, commercial property investing can help you get the returns you’re looking for. However, working with many prospective investors, we understand that many people who want to get into commercial real estate don’t have the expertise—and ultimately the confidence—to become savvy investors.
Our team of experienced real estate investors are here to help you get the guidance and support you need throughout your investment journey whether it’s searching for the right property, securing the right financier, or negotiating a better deal.
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Strict point selection criteria
30+
Experts working with you
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