What is Fractional Property Investment?
Fractional property investment involves purchasing a portion of a property rather than the entire property and sharing ownership with other parties.
What is BrickX?
It’s an online platform that allows you to buy and own a portion of a property. BrickX was founded in 2014 by Anthony Millet and is a smart and cost-effective way to invest in the real estate market.
How does it work?
Imagine that you want to invest in real estate but you don’t have enough money to get started so you buy a brick which is you owning a small percentage of a property.
Brickx divides property into 10,000 bricks. As an investor, you get to choose which bricks to buy and you can buy bricks from multiple properties. If you want, you can let BrickX choose for you with “Smart Investment” and monitor your portfolio of bricks. You earn any net rentalin come in proportion to the number of bricks you own, plus any capital gains based on property price changes.
Investors who choose BrickX will own units within a trust, which is referred to as “Bricks” at BrickX. There are 10,000 Bricks available in each BrickX Trust. If you own a Brick in a BrickX Trust, you own a portion of the single BrickX property that you have chosen.
BrickX makes money from the properties by renting, leasing, or selling them, and both payout regular distributions to their members – typically monthly. The amount of income owners receive for each brick is calculated based on the proportion of bricks they own. earnings can be received in two ways, that is Capital Returns and Rental income.
How do you know what brick to buy?
Properties are chosen based on their potential for growth. So, you decide how much you want to invest and when you want to invest it. You get to receive regular portfolio performance updates.
How do you sell your bricks?
Did you know you can sell the bricks you purchase? All you have to do is go to brickx.com and list the bricks you want to sell so that other investors can buy them.
How fast do bricks sell?
Bricks sell almost as quickly as you can buy them. You are guaranteed to sell the bricks as long as you put them up for sale.
Freedom to Sell
You have complete freedom to sell your bricks without any challenges.
Costs and Fees of Bricks
Let’s breakdown the fee structure when you invest in a brick:
What is their fee structure?
After registering for the BrickX Platform, you have to deposit a minimum of $250 into your BrickX wallet to activate your account. This includes a one-time fee of $10 to become a Platform Member. The $10 is returned to you in your Digital Wallet, along with the remainder of your initial deposit, and can be used to purchase your first Brick.
A transaction fee of 0.5% is levied on all buy and sell transactions. This means that when you buy bricks, you’re charged a 0.5% fee on the total purchase price. And when you sell bricks, you’re charged a 0.5% commission on the sale price. Whether you keep your bricks for two months or ten years, you’ll never pay more than 0.5 percent of the transaction value when you buy and sell.
Are there any fees relating to the property? How do they affect me?
As an investor, you will never have to deal with any property-related expenses, according to the BrickX platform. BrickX manages the properties on your behalf, including all associated bills, strata, council tax, landlord insurance and property management. All expenses related to the property’s operation and running are deducted from its gross income before any distributions are made to Brick Holders (primarily rental income). If the gross income for a given period is insufficient to cover the expenses, the Cash Reserve will be used to cover the expenses.
Should you invest in BrickX?
At this point, you’re probably wondering, “Is BrickX worth it?”. If your income is high enough and you can’t service a mortgage, well yes it is worth it, however if you can service a mortgage there are other options you may want to seriously consider first.
What is the best alternative to BrickX?
Given all the opportunities that BrickX offers, the smart move is always to get into the property market as soon as you can. You probably are not aware that with Investn you do not purchase a fraction of a property, you are purchasing the entire property starting with just $15k,with a much higher return on your initial investment.