BRICKX close to securing 2,750 investors as SMSFs take up fractional property investment
BRICKX, the innovative online platform that makes it easy to invest through fractional ownership, has seven properties for potential investment.
To mark its sixth month since launch to small investors, any Bricks brought today - March 16 - will not incur purchase transaction fees.
"This offer ends at midnight tonight (AEDT)," the chief executive, Anthony Millet said.
Investors have potential to receive both capital returns and net rental income. Its tenant for the Bondi property commenced late last year paying $900 per week, as forecasted.
BRICKX has a simple fee structure typically charging a 1.75 percent transaction fee when you buy or sell bricks.
There are no funds under management, performance, contribution, service, or withdrawal fees.
There are monthly expenses associated with each property, detailed on each property's cashflow monthly distributions.
There are some 2,746 BRICKX investors who can currently trade on the exchange.
Some 11,604 Bricks have been transacted in the last 90 days.
The seven properties have an $8,685,000 value.
Since launched in September with four properties on the BRICKX Platform, the venture won Fintech Startup of the Year 2016 at the Startcon awards.
Millet was cited by the Australian Financial Review recently as saying that it took three years to get the approval from the Australian Securities and Investments Commission for the product to ensure it was suitable for retail investors.
The company currently owns properties in Bondi Beach, Double Bay, Enmore, Annandale and Mosman in Sydney and at Port Melbourne and Prahran in Melbourne.
The estimated net rental yield for these properties, as shown on its website, range from 1.48 percent to 2.88 percent.
Prices of bricks range from $69 per brick for its one-bedroom property in Enmore to $158 per brick for a two-bedroom house in Melbourne.
The property investment platform that allows investors to acquire small interests in residential properties buys a property and divides it into 10,000 ‘bricks’, which are then sold to investors.
The platform has drawn interest from self managed super funds. Chief executive Anthony Millet said SMSFs typically invest six-and-a-half times more than other retail investors through the site.
The average number of properties in which SMSF investors have an interest is 2.7.
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