Residential Property

Fractional property SMSF trends continue

BrickX has revealed SMSFs using its platform to access Australian residential property remain the biggest diversifiers across individual properties and also hold the highest average account value, ahead of the fractional property fintech tomorrow marking 12 months since its launch.

Currently, close to 2 per cent of BrickX’s nearly 7000 investors are SMSF investors.

The average SMSF account is valued at around $14,000.

“On average, SMSFs invest eight times more than the average investor using the platform,” BrickX chief executive Anthony Millet told selfmanagedsuper.

“SMSF investors also hold more diversified portfolios, with most accounts containing more than four individual properties, compared to 2.75 properties across other individual investors.

“Whilst the uptake with SMSF investors has been pleasing, the benefits investors get – including the low cost of entry, ability to diversify across multiple properties and no involvement in property management – really sells itself.

“We continue to see increasing organic growth of SMSF investors, who seek returns from residential real estate without the traditional hassles and accessibility issues associated with this asset class.”

Millet added traditional residential real estate continues to be “a bit of an all or nothing investment” within SMSF portfolios.

“According to Class data, only 15 per cent of SMSF funds include residential property, but where they do, they account for over 47 per cent of the value of the assets and lead to a fairly undiversified situation,” he noted.

“BrickX has successfully addressed the challenges of investing in this asset class, providing access to high-quality properties and empowering investors to make asset allocation decisions in the same way they might with shares rather than acquire entire lumpy assets.”

Last month, BrickX launched its first property outside of Sydney and Melbourne, expanding into Adelaide with its fourteenth property.

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