Don’t have a spare $1 million to invest in property? Never fear. BrickX is a fractional property investment platform that allows Australian investors to invest in residential real estate for a small portion of the cost of buying a whole house or investment property.
We are pleased to congratulate BRICKX on this innovative property investment vehicle, which has won a 2017 CANSTAR Innovation Excellence Award.
What is BRICKX?
BRICKX is an online platform for fractional property investment in residential property in Australia.
How it works is that BRICKX buys the properties upfront, each property is put into a standalone fixed trust, and the properties are rented out. Investors buy ‘Bricks’ in the unit trust that owns the property they are interested in.
Each Brick gives the investor a beneficial interest in the rental income and possible capital gains from that property.
While many Australians may struggle to afford to invest in property on their own thanks to rising house prices, BRICKX is an affordable option, with investments starting from under $100.
What’s more, it’s easier than traditional property investment. BRICKX researches and vets the residential investment properties for you, so you don’t have to spend weekends attending tedious house inspections or face the stomach-churning angst of bidding at auctions.
BRICKX has succeeded in becoming popular with Australian investors, with 2,150 investors using the platform in the 4 months since launching in September 2016. BRICKX also won the Startcon FinTech Startup of the Year Award for 2016.
The main benefits of the BRICKX platform are:
- Income: A ‘Brick’ gives the investor a beneficial interest and a proportional entitlement to any benefits generated from the underlying property (rental income, and potentially capital gains) after the payment of all costs.
- Easy: The BRICKX buying team finds, purchases, and oversees the properties, meaning hassle-free property management.
- Affordable: There is no minimum holding in ‘Bricks’ – each investor can own up to 5% of any particular property.
- Desirable properties: Suburbs on offer for investment via BRICKX include notoriously expensive areas with low vacancy risk and strong demand, such as Bondi Beach, Double Bay, Mosman, Annandale, and Enmore (in Sydney), and Port Melbourne and Prahran (in Melbourne).
- Ability to diversify: The choice is yours regarding how little you invest in property, which frees up other savings to potentially buy a more diversified investment portfolio. Investors can also invest in multiple properties at once.
- Liquidity: An investor is able to list their ‘Bricks’ for sale whenever they want. This means the investment timeframe is not fixed – the investor can choose when to buy and sell. Every 6 months, the property is independently valued to give an underlying value to the individual Bricks.
- Fintech: The platform can be accessed via mobile app or online.
BRICKX were the first company to launch fractional property investment as a retail product through the ASIC Innovation Hub scheme.
Although other fractional ownership schemes or managed funds exist, BRICKX provides a lower point of entry for investing in Australian residential real estate investments, compared to other options on the market – less than $100 per Brick. The wow factor of BRICKX is also the fact that it is so easy to invest in property through the BRICKX platform.
BRICKX provides investors with an innovative, affordable option to control the property investment portion of their portfolio.
Every year, CANSTAR looks for the products being launched in the area of financial services to make our lives easier and more convenient. The products that CANSTAR judges to be the most innovative in their field are awarded a CANSTAR Innovation Excellence Award.
For more innovative and award-winning products, visit the CANSTAR Innovation Excellence Awards for 2017:
CANSTAR is an information provider and in giving you product information it is not making any suggestion or recommendation about a particular product. This information has been prepared without taking into account your individual objectives, financial circumstances, or needs. Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation, and needs. You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product. Please refer to Canstar’s Financial Services and Credit Guide (FSCG) for more information, and read our detailed disclosure, important notes and liability disclaimer.
The inclusions mentioned represent a selection of what is covered at the time of writing. Additional terms and conditions may apply to different features. Additional fees may apply to the product. Please ensure that you read the product disclosure statement (PDS) to determine all the current options and inclusions for the product you are considering.