Affordable access- BRICKX is creating access to property investment at affordable and accessible amounts. You need a minimum deposit of $75 to begin investing in Bricks, The minimum investment in Bricks is the minimum price of a single Brick.
No property management hassle- BRICKX manages the properties listed on the BRICKX Platform, and you have absolutely no property management obligations. Experienced property managers may be engaged to assist with managing the properties, including sourcing tenants, monthly administration and repairs.
Monthly distributions and Capital Returns- Each Brick you own entitles you to a proportionate share of the property’s net income. In addition, the BRICKX Platform allows Brick investors to claim any benefits of the relevant property’s capital returns when either the Brick and/or the property is sold.
Diclosure and control- The BRICKX Platform provides information about each property, which assists you to form a view and acquire Bricks in the individual properties that you select. This is different to traditional property investment products, which may consist of a number of pooled properties, where the investor cannot choose which properties are invested in.
Diversification- The BRICKX Platform facilitates the ability to spread portfolio exposure, thus offering you the opportunity to reduce and manage the associated investment risk.
Support and expertise- The BRICKX Buying Team have market knowledge in the targeted geographical regions BRICKX considers investments in. With their expertise, properties are selected in locations across Australian cities to optimise rental yields and capital returns. In addition, BRICKX enlists experienced industry professionals, who form The Adviser Panel, to contribute to the acquisition strategy. Once acquired, BRICKX (or its property management agent) regularly reviews each property from the perspective of tenant selection, property maintenance and rental yield.See the Property Team Page for more information on the acquisition strategy.
Whilst the BRICKX Platform has many benefits, there are also a number of risks associated with investing in the Platform which may lead you to lose all or some of your investment. It is important that you understand the risks before you invest.
The value of your Bricks can go up as well as down due to a number of reasons such as:
- general market risks
- economic risks
- property market risks
- property valuations
- tenant risk
- re-leasing and vacancy
- disaster and insurance risk
- counterparty risk
- lack of liquidity
- gearing risk
- limited operating history risk
- reliance on platform technology
- legal and regulatory risk
Additional risks may exist other than those identified which should be considered in light of your personal circumstances. If you have any queries or uncertainties, please consult your financial advisor before deciding whether to invest or increase your investment.Please refer to our PDS for further details of some of the risks to consider when deciding whether to invest in the BRICKX Platform.
Each BRICKX property is held in a separate trust by an external Trustee (Theta) and independent Custodian (AET) and BRICKX Trusco as sub-custodian. Theta (the Responsible Entity and Trustee) has appointed BRICKX as Manager of the BRICKX Platform. BRICKX does not hold any of the properties. BRICKX is an authorised representative of BRICKX Financial Services Limited for the purposes of providing general financial product advice and dealing services in relation to interests in managed investment schemes (which includes Interests and Bricks) and dealing services in relation to general insurance. BRICKX is the owner of the technology and website behind the BRICKX Platform.
In the event that BRICKX’s business was to fail, or cease, Theta would see to appoint another manager of the scheme, or wind the scheme up (which would result in the selling of individual properties and returning of funds after costs).For more information on the structure of the scheme, please refer to the PDS.
BRICKX has a simple fee structure
BRICKX charges a 1.75% transaction fee when you buy or sell your Bricks.In addition, as part of an individual property’s expenses, a 6%+GST property management fee is deducted from the Gross Rental Income of each BRICKX Trust (before making distributions to Brick Holders, if any), and $75 per property per month fee (equating to $0.0075 per Brick per month) to cover annual audit and valuation services. See “How are distribution calculated and paid?” question.
There are two ways Investors can make returns on BRICKX:
Rental income → Each month, earn your share of any Net Rental Income from the property. We call these Monthly Distributions, and they are paid into your BRICKX Wallet where they can be withdrawn or used to reinvest. Note: You must own Bricks at 11.59pm on the last day of the month to be eligible for that month’s distribution.
Capital returns → You also have the potential to earn capital returns from the sale of your Bricks (and/or the sale of the underlying property.) Capital returns are based on the difference between what you paid for the Brick and what you sell it for, which can either be positive or negative. Properties are valued twice a year to help give guidance on price. Monitor your Portfolio here to check your total return on investment.