South Townsville, QLD

How Unikorn helped owners of this office unit in a strata property acquire a net rental yield of 7.24%

Property highlights

Some of the highlights for this property in South Townsville, QLD include:

Potential Capital Growth

Based on its final purchasing price of $2,127,000, potential capital growth projections range from 5% to 10% with property valuations reaching $2,233,350 to $2,339,700. This indicates a promising outlook for capital appreciation.

Net Rent and Yield

The net rent for the property is estimated at $154,095.48 per annum. With a purchase price of $2,127,000.00, the yield is calculated at 7.24%, indicating a favourable return on investment in terms of rental income.

Location

The property is situated in South Townsville, QLD, a suburb of Townsville known for its growing real estate market and strategic location.

Quick facts and figures

Purchase price 

$2,127,000

Deposit

$744,450

Costs

$156,292.10

Net rent

$154,095.48

Rental yield (Rental/Price)

7.24%

The results 

Unikorn was able to help the owners of this property secure the following results:

  • A total positive cashflow of $71,280.74
  • Cash on cash return of 7.91%, 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 $2.283 million to $2.127 million.
  • Established a favourable yield of 7.24%, 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.

Our effect

In conclusion, the investment in South Townsville, QLD, exemplifies the potential for robust financial performance and strategic property management in the commercial real estate sector. 

Despite facing challenges such as high purchase price, loan-to-value ratio considerations, and uncertainties regarding expenses and rental yields, Unikorn's tailored solutions have effectively addressed these obstacles, maximising the property's earning potential while minimising expenses.

Unikorn's comprehensive approach, including tenant optimisation, value-added improvements, vacancy reduction strategies, expense management, lease structuring, asset repositioning, and market analysis, has not only optimised the property's net rental yield but also positioned it for long-term success and capital appreciation.

The results achieved through Unikorn's interventions are notable, with the property owners securing a total positive cashflow of $71,280.74 and a cash-on-cash return of 7.91%. Moreover, the property has demonstrated strong investment potential with a favourable yield of 7.24% relative to its purchase price. Additionally, the projected 10% potential capital growth, amounting to $2,339,700, underscores the property's attractiveness for future appreciation.

Furthermore, the implementation of strategic finance with a 65% loan-to-value ratio has been leveraged while minimising cash outlay, enhancing the property's financial performance and investment appeal. These results signify the effectiveness of Unikorn's expertise in property management, market analysis, and negotiation, demonstrating its ability to maximise the overall profitability of the investment property.

In summary, the collaboration between Unikorn and the property owners has resulted in a successful investment venture, highlighting the importance of proactive management strategies and informed decision-making in realising the full potential of commercial real estate assets.

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: 

Negotiated purchase price

Unikorn team’s expert negotiation skills helped lower the purchasing price of the property from its original valuation of $2.283 million to $2.127 million, therefore maximising cost savings for the property owners. 

Positive cash flow analysis

Through meticulous financial analysis, Unikorn identified potential positive cash flow opportunities, resulting in a total positive cash flow of $71,280.74 annually, enhancing the property's profitability. 

COORDINATING

Maximised cash-on-cash returns:

Unikorn's tailored solutions and efficient management strategies contributed to a strong cash-on-cash return of 7.91%, showcasing the property's financial performance relative to the initial cash investment.

NEEDS

Strategic market analysis

Leveraging their expertise in market analysis, Unikorn provided insights into the property's potential capital growth, with projections ranging from 5% to 10%, further enhancing the investment's long-term profitability. 

Comprehensive Property Management

Unikorn provided comprehensive property management services, including expense management, lease structuring, and asset repositioning, optimising the property's performance and maximising returns for the owners

Proactive Investment Guidance

Throughout the investment journey, Unikorn offered proactive guidance and support to the property owners, ensuring informed decision-making and maximising the overall profitability of the investment venture.

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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