Glossary

We know some technical terms can be confusing, below is a glossary of definitions that may assist.
A

Above Valuation

The Lowest Available Brick Price is above the latest Brick Valuation.

Acquisition Costs

Acquisition costs include the following:

  • Stamp Duty —A standard duty levy or tax on the purchase of property. Varies depending on purchase price and state in which the property was purchased.
  • Legal and professional fees —Lawyer fees, Buyers Agent Fees and any other relevant fees associated with professionals advising or helping with the acquisition of the property.
  • Buyers Agent Fees —Fees charged by buyers agents who assist in sourcing and finalising the asset acquisitions for the BRICKX Platform
  • Other costs —All other costs associated with an asset purchase not defined above ie: photography, State specific levies etc.
Note these acquisition costs are amortised evenly over 60 month period form date of property purchase, and are utilised in determining Brick Valuation.

The Adviser Panel

Individuals with extensive real estate industry knowledge and experience who have been selected by BRICKX to assist the BRICKX team in developing investment strategies.

AML/CTF

Anti-money Laundering and Counter-terrorism Financing. BRICKX has obligations under the Anti-money Laundering and Counter-terrorism Financing Act 2006 (Cth), including to identify and verify customers before issuing or selling interests to such customers.

Annualised Yield

A BRICKX property distribution at end of month, projected over a full year.

Appreciation

An increase in the value of an asset over time, which can result in positive returns

ASIC

The Australian Securities and Investments Commission. The BRICKX Platform is a scheme that is registered with ASIC and subject to regulatory requirements and ASIC oversight.

AUSTRAC

Australian Transaction Reports and Analysis Centre.

Average Brick Price

The average price per Brick an Investor will pay in a single transaction, should a Buy Order include buying Bricks at multiple prices.

Average Price Paid per Brick

The portfolio average of your Brick holdings in a particular property (using generally accepted accounting principles).
B

Below Valuation

The Lowest Available Brick Price is below the latest Brick Valuation.

Brick

A Brick is a unit in a BRICKX unit trust. There are 10,000 Bricks on issue in each BRICKX trust. Owning a Brick in a BRICKX Trust represents ownership of a fraction of an interest in the property held by that trust.

Brick Holder

A person who owns and holds Bricks in their BRICKX Account. Also referred to as a Member.

Brick Price

The dollar value payable per Brick. The Initial Brick Price is calculated by BRICKX when the property is launched onto the Platform, and thereafter set by the seller of the Bricks.

Brick Valuation

The value of an individual Brick within a BRICKX Trust, incorporating the property, cash reserve, unamortised acquisition costs, and debt.

BRICKX

The Brick Exchange Pty Limited (ABN 27 600 762 749).

BRICKX Account

This is a Member's account on the Platform from which a Member can make deposits and withdrawals, manage their portfolio, edit their settings and view reports. Also referred to as 'My Account'.

BRICKX FSG

Means the financial services guide issued by BRICKX Financial Services and its representatives. The latest version is available for download from here.

BRICKX Platform

The registered managed investment scheme known as ‘BRICKX Platform’ (ARSN 613 156 433). This is also referred to as the ‘Platform’.

BRICKX Platform Constitution or Constitution

The constitution of the BRICKX Platform which binds the Responsible Entity and Members.

BRICKX Property

Any property currently available on the BRICKX Platform.

BRICKX Property Portfolio

See My Portfolio.

BRICKX Trust

A unit trust forming part of the BRICKX Platform. Each BRICKX property is held in a separate BRICKX Trust.

Buying Team

This is the team who source, inspect and prepare all investment cases for the wider Property Team.

Buy Order

The placing of an order by a Member in the Order Book to buy Bricks available on the BRICKX Platform.
C

Capital Gains

The profit from the sale of a property or an investment. Note: A Capital Gains Tax is imposed when an individual parts with his/her asset and makes a capital gain on it. See our Capital Gains Tax definition.

Capital Gains Tax or CGT

Brick Holders will pay CGT at the rate used for their individual income tax rate for that financial year. Refer to the PDS for further details.

Capital Gains Tax Discount

If you hold Bricks for more than 12 months you may be eligible to receive a 50% deduction on the CGT placed upon the asset. Refer to PDS for further details.

Capital Loss

This is the capital loss from the sale of a property or an investment.

Capital Returns

Return on your capital, which can be positive or negative. When you sell your Bricks and exit the investment you will receive a capital return.

Cash Reserve

This is calculated and included in the Total Purchase Price of a new property launched onto the BRICKX Platform. The primary purpose of the cash reserve is to cover necessary and ordinary expenses (for example, repair and maintenance) arising during a short term vacancy in the property. In addition, the cash reserve may be used to pay expenses where billed services extend over a one month period, with replenishment of the cash reserve drawn proportionally from gross income in future months. The cash reserve is also topped up monthly with maintenance contributions from each BRICKX trust ahead of monthly distributions.

Cashflow

This is the record of the income and expenses of a property. The BRICKX Platform uses cashflow records as forecasts with an assumption of 100% tenancy. Forecasted expenses are based on historical and known information. Past performance is no indication of future performance. Any forecasts are subject to change without notice.

Constitution

Also referred to as ‘The BRICKX Platform Constitution’, is the constitution of the BRICKX Platform and sets out the terms of the Interests and which binds the Responsible Entity and Members. For further details, refer to the relevant sections in the PDS.

Custodian

The holder of the BRICKX Platform assets. The Responsible Entity has appointed Australian Executor Trustees Limited (ABN 84 007 869 7984 / AFSL 240023). The Custodian has appointed BRICKX Trusco Pty Limited (ACN 602 627 770) as its sub-custodian.
D

Debt

A sum of money that is owed or due.

Depreciation

A reduction or write-off of an asset’s value of its estimated useful life, which may provide tax benefits for the individual. BRICKX makes available depreciation reports and schedules to assist with Investors’ completion of tax returns. It is recommended that Investors refer to their personal advisers for additional information.

Digital Wallet

Also known as the 'Wallet', which is opened and maintained by BRICKX on behalf of each Member through which all deposits and receipts in relation to Brick transactions occur.

Distributions

The act of distributing the net rental income for a particular BRICKX property to Brick Owners in proportion to the Bricks held in the relevant BRICKX trust which holds the property. Distributions are calculated on the last day of the month and distributions are typically paid into Wallets within 10 business days.

Distributions Per Brick

The net amount paid per Brick per month.

Due Diligence

Investigation of a property prior to purchase. BRICKX makes due diligence documents for each property available on the BRICKX Platform website, however investors are responsible for undertaking their own due diligence investigations concerning any investment in the BRICKX Platform.
E

Equity

The value of a BRICKX trust after debt. This number divided by 10,000 is the Brick Valuation.
F

Fixed Term

This refers to the specified period of time that an Interest Rate is set for in relation to debt within a BRICKX investment.

Fractional Ownership

Refers to the ownership of a proportion of a BRICKX trust that holds a single property. Each fraction is known as a Brick equal to 1/10,000th of an interest in a property.

Funds Available

This is the value of the cash you have in your Wallet available to pre-order and purchase available Bricks.
G

Gearing

The strategy of borrowing money to purchase a property, otherwise known as leveraging. This normally takes place with use of a mortgage.

Gearing Effect

The amplification on Capital Returns, positive or negative, from having a mortgage on the property. This is calculated by [(Historical Capital Growth %) / ( 1- Loan to Value Ratio)] - (Historical Capital Growth %).

Gross Rental Income

Also referred to as ‘Rental Income’, is the amount of rent derived from a property before any related expenses.

Gross Rental Yield

The annual gross rental income divided by 10,000 and divided by the lowest available Brick price. See monthly distributions tab on each property listing.

Gross Yields

The yield on an investment before the deduction of taxes and expenses. Gross yield is expressed in percentage terms. It is calculated as the annual return on an investment prior to taxes and expenses divided by the current price of the investment. On the BRICKX Platform, this is represented as a percentage based on lowest available Brick Price.
H

Historical Suburb Growth (5Y Avg, Per Annum)

The average rate of growth per year over the past 5 full years for all properties in the suburb. Based on the sum of the previous 5 full years of suburb growth for all properties and divided by 5 to find the average over the 5 full years. At present, data is sourced from CoreLogic. The index used in the SA2 Median Price Index, based on sales (excluding multi-sales) within the last 12 months.
I

Independent Valuation

A property valuation carried out by an external independent valuation company. This independent valuation is used to calculate the value of each BRICKX trust, and resulting Brick Valuation.

Inflation

Refers to an increase in prices and fall in the purchasing value of money over time.

Initial Brick Price

The dollar value of a Brick when first launched onto the Platform. Additionally, this is the price at which Bricks can be reserved during the Pre-Order Phase.

Initial Bricks

Bricks held by the Initial Brick Holder.

Initial Debt

This is the amount of debt applied to the initial cost of a new property. The initial debt, together with the related Initial Equity, Acquisition Costs, and Cash Reserve makes the Total Purchase Price of the property.

Initial Equity

This is the amount of capital applied to the initial cost of a new property.

Initial Purchase Cost

The initial price paid for the property, excluding Acquisition Costs and Cash Reserve.

Interest Only Loan

An interest only loan is a loan where only interest payments are made in servicing the loan. This is normally for a specified period of time, which can be viewed on the Capital Returns tab of an individual property.

Interest Payments

Money paid in regular instalments at an agreed rate for the use of debt financing.

Interest Rate

Refers to the findings of the Property Team relating to a possible property acquisition, having regard to BRICKX’s acquisition strategy.

Investment Case

The Property Team summarise the key attributes of the acquisition strategy for the related property

Investment Team

Brings commercial experience across property, diversified investments, financial and technology industries to the BRICKX Platform.

Investor

Also known as 'Brick Holder' is an active registered Member who invests in the BRICKX Platform properties and becomes a Brick Holder.
J

K

L

Latest Value

Refers to the latest value of a BRICKX trust. It consists of Latest Property Valuation + Unamortised Acquisition Costs + Cash Reserve.

Latest Property Valuation

The most recent independent valuation of a property performed by an external experienced valuer.

Liquidity

The availability or ease of turning an asset into cash.

Loan Term

This refers to the period of time of a Debt facility.

Loan Type

Refers to the terms of the Debt facility which can be either or a combination of the following, fixed or variable.

Lowest Available Brick Price

This is the lowest price at which an investor can purchase Bricks.
M

Maintenance Allowance

Refers to a percentage of the gross rental income collected ahead of paying any distributions, the purpose of which is to cover necessary ordinary expenses (such as maintenance and repairs) of a property.

Member

A person who has joined the Platform, has been entered in the register as a holder of an interest the BRICKX Platform and is able to buy and sell Bricks.

My Portfolio

The total value of Bricks using the lowest available Brick Price. Also referred to as ‘Total Portfolio Value’.
N

Net Rental Yield

The Net Annual Rental Income, divided by 10,000 and divided by the Lowest Available Brick Price.

Net Annual Rental Income

The yearly amount of rent from a property after paying all costs, interest and expenses.

Net Rental Income

The amount of rent from a property after paying all related expenses.

Net Yields

The yield on an investment after the deduction of expenses. Calculated as the annual return on an investment after relevant expenses divided by the asset price.
O

Order Book

Shows all current open offers to sell Bricks. Each property has its own order book indicating Bricks available to purchase.
P

PDS

Means Product Disclosure Statement. The latest version is available for download from here.

Pending Pre-Orders

Orders a Member has placed to reserve Bricks in a new listing. Note whilst Bricks are reserved, the funds to cover this future acquisition of Bricks are unable to be withdrawn or applied to other Brick purchases. Pending Pre-Orders can be cancelled at any time prior to Settlement.

Pre-Order Phase

Refers to the period of time commencing on the date on which a new property is launched on the BRICKX Platform and concludes at Settlement Date. During this period, Bricks can be reserved at the Initial Brick Price.

Principal

The original sum of a loan, before interest is added.

Projected Annual Distributions

The sum of the projected Net Rental Income across all BRICKX properties and expected to be paid to all Brick Holders.

Property Code

A property’s code represents its transaction name on the BRICKX Platform. For example, the BRICKX Enmore property code is ENMO1.

Property Team

Made up of the Investment Team, Buying Team and Adviser Panel, and are collectively responsible for forming and executing the acquisition strategy.

Purchase Date

The date of settlement of the acquisition of property.
Q

R

Rental Income

The amount of rent derived from a property before any related expenses. Also referred to as Gross Income.

Rental Yields

Rental yields measure how much cash an income generating asset produces each year as a percentage of that asset's value. For real estate, it is the rental income as a percentage of the property's value. There are two kinds of yields displayed on the Platform’s website: Gross Rental Yield and Net Rental Yield.

Responsible Entity

Theta Asset Management Limited (ABN 37 071 807 684 / AFSL 230920).

Reserved Bricks

When a new property is launched on the BRICKX Platform during the Pre-Order Phase, Bricks can be reserved at the ‘Initial Brick Price. . Reserved Bricks can be cancelled at any time before Settlement Date. Bricks can only be reserved if there are sufficient funds in your Wallet.

Return On Investment ROI

The benefit/loss on an investment. Displayed on each property’s listing page as the sum of the Net Brick Rental Yield + Historical Capital Growth (5yr Average) + Gearing Effect. Past performance is no indication of future performance. Any forecasts are subject to change without notice.
S

Sell Order

The placing of an order to sell Bricks . The seller specifies the number of Bricks to be sold and the sell price per Brick.

Settlement Date

The date determined by BRICKX on which the Pre-Order Phase concludes, and all reserved Bricks transact. This may or may not coincide with the date of settlement of the acquisition of a property.

SMSF

Self Managed Superannuation Fund.

Strata Title

Strata title allows individual ownership of part of a property, where the part ownership will be the individual apartment.
T

Theta

Also known as Theta Asset Management Limited (ABN 37 071 807 684 / AFSL 230920), Theta is the Responsible Entity of the BRICKX Platform, and trustee for all BRICKX trusts.

Total Purchase Price

The initial total cost of a new property on the BRICKX Platform, which consists of the property purchase price, related Acquisitions Costs, and the Cash Reserve.

Transaction History

A detailed record in your BRICKX Account of historical Buy Orders, Sell Orders, deposit, withdrawals and distributions.
U

Units

Units in a trust which represent 'fractions' of an asset. Each BRICKX trust consists of 10,000 units on issue. BRICKX refers to units as Bricks.
V

Vacancy Rates

The amount of time a property may be unoccupied on average per year.
W

X

Y

Z