Consider BrickX, a new way of fractional home ownership in Australia,
brick by brick, literally.
Can’t afford a home? BrickX will let you buy a single “brick” of a
designated house for a mere $100 or so. You pay $1.75% buying bricks and
another $1.75% when selling bricks.
Fractional Home Ownership
Please consider New Breed of House Buying: No Inspection, No Auction, $100 a
Brick
WANNABE property investors now have another option for getting a toehold
in the booming Sydney property market. A new company is selling houses just
one brick at a time.
The BrickX investment scheme which launched officially today is billed as
Australia’s first stock exchange for residential property, offering part
ownership via buying single ‘bricks’, which start at $67, under a system
called ‘fractional ownership”.
BrickX works by buying a property, then splitting it into 10,000 ‘bricks’.
Prospective investors can go onto their website to check out the properties
(currently there are five, including in Sydneys Enmore, Mosman and as of last
week, Double Bay, and Melbourne’s Prahan, and the aim is to have 100).
BrickX Model
Inquiring minds are diving into the BrickX Model.
Example BrickX Property
The Rent per week on this property is currently $750 per week, $39,000 a
year. The last brick dividend was $0.24.
Assuming the house is rented every week of every year, at $750 per week,
property taxes do not go up, and there are no expenses, one would recoup a $100
investment in 34.7 years and still own the brick.
BrickX CEO Anthony Millet says “There are no funds under management. The
only other expenses are the specific expenses that would relate to any
standard property. like strata, water, council rates etc, and these are
administered before investors get their dividend.”
Excuse me, what about maintenance costs?
Expect maintenance costs to rise over time. Expect property values to sink
over time.
Who’s buying? “The bulk of the earliest stakeholders are those in the
under-34 year old age group,” said Miller.
Mike “Mish” Shedlock
