7 Aussie Properties You Can Invest In For As Little As $69

Want to dip your toes into the world of property investing? Check out these homes you can buy a stake in…

Australian fractional property investment platform BRICKX currently has seven properties available for Australians to pick from.

The award-winning fintech start-up has carefully selected these units and houses from areas their experts believe have great potential to provide positive rental income and capital returns.

Ownership in these properties is divided up into 10,000 ‘bricks’ which investors can buy and sell on a brick stock exchange of sorts.

Options range from a one bedroom unit in Sydney’s inner west selling from $69 per brick, to a debt-free Port Melbourne house from $158 per brick.

While all of the properties are in New South Wales and Victoria, BRICKX CEO Anthony Millet says a number of new properties will be coming to BRICKX in the coming months.

In addition, they’ll be launching an investment calculator to help investors predict and calculate their returns, and a savings plan to help investors reach their savings goal.

 

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The 7 properties you can partly own

At the time of writing, these are the properties listed on BRICKX’s platform:

Please note that all brick prices, rental yields and capital return estimations are correct at the time of writing (3 March 2017). Yield and investment return estimations are obtained from BRICKX website.

1. Port Melbourne House (VIC) – from $158/brick

Port Melbourne

 

  • Location: 322 Esplanade East, Port Melbourne VIC 3207
  • Property facts: 2 bedrooms, 2 bathrooms, 0 car spaces
  • Estimated Net Rental Yield: 1.79% p.a.
  • Estimated Annualised Return on investment: 12.31% p.a.

Watch the investment case video:

 

2. Bondi Beach Unit (NSW) – from $97/brick

Bondi Beach Unit

  • Location: 2/5 Ramsgate Avenue, Bondi Beach NSW 2026
  • Property facts: 2 bedrooms, 1 bathroom, 0 car spaces
  • Estimated Net Rental Yield: 1.57% p.a.
  • Estimated Annualised Return on investment: 17.69% p.a.

Watch the investment case video:

 

3. Double Bay Unit (NSW) – from $98/brick

Double Bay Unit

  • Location: 7/22 Ocean Avenue, Double Bay NSW 2028
  • Property facts: 2 bedrooms, 1 bathroom, 1 car space
  • Estimated Net Rental Yield: 2.08% p.a.
  • Estimated Annualised Return on investment: 19.75% p.a.

Watch the investment case video:

 

4. Enmore House (NSW) – from $69/brick

Enmore House property

  • Location: 1/159 Enmore Road, Enmore NSW 2042
  • Property facts: 1 bedroom, 1 bathroom, 0 car spaces
  • Estimated Net Rental Yield: 2.88% p.a.
  • Estimated Annualised Return on investment: 8.51% p.a.

Watch the investment case video:

 

5. Annandale House (NSW) – from $103/brick

Annandale Property

  • Location: 109 Albion St, Annandale NSW 2038
  • Property facts: 2 bedrooms, 2 bathrooms, 1 car space
  • Estimated Net Rental Yield: 1.48% p.a.
  • Estimated Annualised Return on investment: 16.37% p.a.

Watch the investment case video:

 

6. Prahan Unit (VIC) – from $121/brick

Prahran proerty

  • Location: 4/6 Miller St, Prahran VIC 3181
  • Property facts: 2 bedrooms, 1 bathroom, 2 car spaces
  • Estimated Net Rental Yield: 2.24% p.a.
  • Estimated Annualised Return on investment: 4.34% p.a.

Watch the investment case video:

 

7. Mosman Unit (NSW) – from $143/brick

Mosman Property

 

  • Location: 18/5 Parriwi Road, Mosman NSW 2088
  • Property facts: 2 bedrooms, 2 bathrooms, 1 car space
  • Estimated Net Rental Yield: 2.73% p.a.
  • Estimated Annualised Return on investment: 14.06% p.a.

Watch the investment case video:

 

 

Compare Investment Products With Wealthbricks

 

Please note that all information above regarding returns on investment or net yield is an estimation only. Estimated performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise. If you look at any specific product, consider the product disclosure statement (PDS) and seek advice from a licensed financial adviser before making an investment decision. See our detailed disclosure. Click here for additional important notes and liability disclaimer.

 

Canstar Q&A with Anthony Millet – BRICKX CEO

Canstar recently caught up with BRICKX CEO Anthony Millet to find out more about the business and his view of the Australian property market…

Q: What’s been happening in the BRICKX world lately? Anything exciting on the horizon?

In February, we were delighted to launch our first Melbourne house, in the suburb of Port Melbourne. This suburb has had a history of strong capital growth, and we were able to secure the property at a level that represented good value to investors, and have since rented it out for 5% more than forecasted. So far, there are 241 investors in this property.

We have also made good progress in getting clearance from Revenue South Australia to be able to operate BRICKX in SA, and have expanded the property mandate to include the South Australian region, primarily looking at Adelaide.

Q: How well is the business growing, and what challenges does it face?

Since launch, we have had over 14,500 people sign up at www.BRICKX.com, and now have in excess of 2,600 investors, many of which have invested across multiple properties.

It’s great to see that investors are taking a diversified approach to building their portfolios, and what is even more pleasing is that the majority of our customers are self-serving on the BRICKX website without needing to speak to customer services. Of course we have an excellent team ready to help, but the fact the site is so simple to use, is proving to show that customers really understand how BRICKX works.

As a business, the quicker we can grow, the better liquidity the platform should have for investors – and the quicker we can bring new opportunities to our investor base. Liquidity is good, with the median time to sell (Oct-Jan) being 2.1 hours; however, we’re not getting complacent, and are currently focused on investor growth.

 

Q: Is the Australian property market ripe for a correction? What’s your outlook for the next few years?

History will show you that property goes through cycles. Not all cycles in Australia are in sync, and whilst Sydney and Melbourne have had good runs, Perth and other capital cities have not performed as well (from a capital growth perspective).

BRICKX is selecting properties which are in highly desirable suburbs, with a strong track record of capital growth, strong tenant demand, and a general shortage of quality housing stock (with little opportunity for mass development).

Our view, which is shared with our advisors Tim Lawless (Corelogic) and Nerida Conisbee (Realestate.com), is that these properties should continue to perform strongly in the good years of a cycle, and be more defensive in nature (due to supply shortage and ongoing tenant demand) in slower years of a cycle.

That’s why we have chosen properties in Bondi Beach, Double Bay, Mosman, Enmore and Annandale in Sydney, and Port Melbourne and Prahran in Melbourne.

Q: How could people best utilise BRICKX?

Everyone in Australia has an interest in residential property. It is the largest asset class, more than three times the size of the Aussie share market!

Our investors range from:

  • First home savers, who are now saving their house deposit in line with the housing market (no more property market running away from them)
  • Parents regularly depositing small amounts on behalf of their children (saving for that future deposit many years away)
  • Self-managed super fund (SMSF) investors, who are now able to allocate a meaningful part of their SMSF to individual property investments without overexposing themselves to one asset (if they had purchased via the traditional route)

These ‘use cases’ are solving real problems and providing investors with real benefits which really helps keep our team motivated. The other great thing about investing with BRICKX is that you don’t have the hassles of managing the property!

 

Q: What do you say to BRICKX critics that argue that investing in an index fund or that a real estate investment trust (REIT) is better?

One of the reasons for creating BRICKX was that there are very few alternatives which provide equity exposure to the Australian residential market. This asset class has consistently been the best performer over the last 10 and 20 years (according to the ASX 2016 report).

Both REITs and Index Funds typically have exposure to commercial and industrial property, so they’re a different type of investment altogether, with a different risk profile, and likely different fees associated.

We don’t have a funds under management fee, just a 1.75% transaction fee whenever you trade.

Compare Investment Products With Wealthbricks

Any views or opinions expressed do not necessarily state or reflect those of CANSTAR. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you. Consider the product disclosure statement (PDS) before making a purchase decision.

Canstar provides an information service. It is not a credit provider, and in giving you information about products Canstar is not making any suggestion or recommendation to you about a particular product.

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