Sick of waiting to get into the Australian property market? Taking too long to get a deposit together? Now there is a new way to buy property – by the fraction!
In an Australian first BRICKX allows investors to buy a fraction of an investment property for as little as $100. The properties are purchased and then divided into ownership units by BRICKX which they call “Bricks”. For example, a property purchased for $1 million, is divided into 10,000 Bricks worth $100 each.
Chief executive of BRICKX Anthony Millet says “BRICKX can be well suited for those who feel locked out of the property market and investors keen to diversify their investment portfolios. This form of property investment is accessible on so many levels – investment is easy, distributions are typically regular, divesting can be as simple as listing your Bricks for sale”.
The investors receive rent in proportion to the fractional interest they have in the property and valuations on the property are completed twice a year to provide an indication of ‘fair’ value should the owner of the bricks wish to sell. Bricks are sold much the same as shares, with the buyers and sellers bidding on the platform.
Typical net rental yield is less than 2.5% on most properties and BRICKX charges 1.75% fee on purchasing and selling the Bricks.
This is not an endorsement for this product but for your information only.