What's BrickX and how it operates?
BrickX provides an creative way to invest without huge start-up costs.
As house prices continue to rise, real estate investment moves out of reach for many Australians. Buying a property as an investment entails some massive upfront costs that can be difficult for many. BrickX investment platform provides an alternative way to invest in property by fractional investment.
What are fractional investments?
Fractional property investment helps you to reap many of the property investment benefits without high upfront costs. Fractional investment pools funds from a broad number of investors to buy assets. All investors share in the property's rental income and any capital gains equal to their initial investment.
Buying shares is a simple way to think of fractional investment. For example, if a group of investors decided to purchase a property at $1 million, they might split the property's price into 10,000 shares at $100 each. Investors would then receive a return proportional to the number of shares they owned.
BrickX is a residential-focused, fractional investment platform. They buy residential land, dividing property costs into 10,000 "Bricks." Investors can buy Bricks at a price based on property value.
What's BrickX offering?
BrickX allows investors to browse through platform-owned properties and purchase a share at a value-determined price. Investors can view the monthly rental yield and expected investment return of each property.
Purchasing Bricks gives investors a fractional share of residential land. BrickX investors will then make two ways. Next, the property's monthly rental income is divided among investors depending on the proportion of the property they own. BrickX handles all property management duties, collecting rent from investor-owned properties. Rental income funds are paid into a BrickX Wallet account within 10 days at each month's end. This provides continuing revenue for BrickX investors.
Investors can also make money on the property's capital gains. Valuations are performed on BrickX properties semi-annually, and Bricks' value associated with the property changes accordingly. BrickX investors can track these changes through a BrickX portfolio app. If an investor wants to cash on capital returns, they sell their Bricks on the BrickX platform, allowing other investors to buy them.
How do I start with BrickX?
If you think BrickX sounds like a good investment platform, visit their website where you can register for an account. Put in a deposit of $75, which requires a $10 processing fee, too. The $10 is returned to your BrickX Wallet upon account creation. You can then browse available properties to see cost per Brick, the monthly rental yield, and expected return on investment. You can then buy Bricks with BrickX Wallet filled with your funds.
If you purchase or sell a Brick, you will be paid a 1.75% transaction fee. There's also a 6% annual property maintenance fee deducted from rental income. It also charges $0.09 per Brick as an annual audit and valuation bill.
Before investing with BrickX, be sure to read the full product disclosure statement on its website. It's smart, like with any project, to seek impartial advice before making a decision.
BrickX main features and highlights
- Real Estate Investments