It’s with great pleasure that we can announce that the BrickX monthly Blog is now back! Each month we will be bringing you relevant insights that help our subscribers better understand the world of property and BrickX investments.
So, it seems only logical to start at the beginning – why BrickX? Our mission at BrickX is to make property investing accessible to all Australians. We have all seen the significant growth in the Australian property market over many decades, but for some getting a slice of the action has been challenging and it’s likely to get tougher to get a foothold in the market, if prices continue to rise. The deposit you need to save to buy an average priced home in a major Australian capital city is now multiples of the average Australian salary and is often years of saving in the making. Then there’s the issue of borrowing capacity and getting finance – because prices have risen significantly ahead of the growth in salaries, many folks find that their borrowing capacity, which is the amount a bank or financial institution will lend to you, doesn’t actually allow them to purchase a home that meets their needs in the location they want to reside.
Enter BrickX. This award-winning platform provides a simple and low cost way to access the property market. At BrickX, properties are selected after an extensive due diligence process and each property is divided into 10,000 bricks. You choose the Bricks you want to purchase or let us choose for you with Smart Invest. Net rental income, that is rent with any relevant expenses deducted, is paid to you monthly in proportion with the number of Bricks you own. You can also earn capital returns in line with property price changes when you sell your Bricks. The ability to place your Bricks available for sale to another member at any time means that you have the benefit of liquidity. As at 1 January 2022, the median time to sell Bricks was 23 hours and 42 minutes, based on sell orders placed at or below the last traded Brick price.
Something you may not be aware of is that BrickX can allow you the benefit of a leveraged investment return. Each property is typically part funded with bank debt which means that investors can benefit from the leverage without having that debt on their own balance sheet. What does this mean for an individual investor – it means that, while your investment on the BrickX platform is leveraged, this debt doesn’t impact your own personal borrowing capacity.
So what is the BrickX difference? It’s accessibility to properties selected after significant due diligence and the potential to benefit from liquidity and leverage.
We look forward to bringing you more properties soon!