Fractional property access gets cheaper

The latest property on the BrickX platform will allow investors, including SMSFs, to gain residential property exposure for $57 a brick.

The fractional property fintech firm last week listed ‘bricks’ for pre-order for a one bedroom, renovated Darlinghurst apartment, with settlement expected later this week.

BrickX divides properties into 10,000 units or bricks for investors to earn capital returns and monthly net rental income in proportion to the number of bricks owned.

“We’re thrilled to offer investors a share in this inner-Sydney property at such a low price point,” BrickX chief executive Anthony Millet said.

“Darlinghurst is renowned for its eclectic, vibrant mix of cafes, bars and restaurants and is within walking distance to the CBD, with easy access to public transport, making it a very desirable suburb.”

RP Data CoreLogic head of research and BrickX adviser panel member Tim Lawless added Darlinghurst had been a very consistent performer over the past decade.

“CoreLogic figures show unit prices have risen over the last five years to the end of March 2017, on average, by 9.22 per cent per annum,” Lawless noted.

“Rental yields tend to be higher than the broader Sydney average as well, with the typical Darlinghurst unit currently attracting a 4.2 per cent gross yield.”

In March, Millet told selfmanagedsuper SMSFs were using the platform to expand their existing property portfolios by using a geographically diversified approach, which in turn spread their risk across different properties.

“There’s where we’re seeing really good success,” he said at the time.

“We’re seeing people put their SMSF funds into BrickX where some of them are investing in a single property, but many are also diversifying across a number of properties.

“Our SMSF investors range from those that have put in a few thousand dollars to those investing $50,000, but what we’re also seeing is that every time we bring a new property to the platform, we’ve got investors, who already have an exposure, putting further funds in – so continuing to diversify across their portfolio.”

Last month, BrickX was awarded the Canstar 2017 Innovation Excellence Award.

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