A new investment platform is giving Australian the opportunities to buy into the property market one brick at a time.
BRICKX offers shares in houses for as little as under $100 per brick. The latest property available for investment is a house in Brunswick West.
CEO Anthony Millet expects this latest offering in Melbourne to be popular with investors further adding to the current Melbourne portfolio of Prahran and Port Melbourne.
“We’re thrilled to provide access to such a stunningly transformed terrace at an affordable entry price of just under $100,” Mr Millet said. “With the initial Brick price being $99, BRICKX continues to strive to make property investment affordable for all Australians.”
BRICKX breaks down traditional barriers that exist when it comes to investing in residential real estate. BRICKX properties are each put into an individual trust and split into 10,000 units or “Bricks”.
How do investors make money?
At the end of every month, shareholders are paid a cut of the net rental income, depending on how many bricks they own.
The rental return of each property is calculated as follows:
Gross Rent Income - (strata levies + water rates + council rates + maintenance + management fees + annual audit and valuation fees + property taxes + debt interest + principal repayments + other costs) divided by 10,000 bricks.
What fees are involved?
According to the BRICKX website, the fee structure is simple.
“BRICKX charges a 1.75% transaction fee when you buy or sell your Bricks.
“In addition, as part of an individual property’s expenses, a 6%+GST property management fee is deducted from the Gross Rental Income of each BRICKX Trust (before making distributions to Brick Holders, if any), and $75 per property per month fee (equating to $0.0075 per Brick per month) to cover annual audit and valuation services.”
This article originally appeared on Better Homes and Gardens.