We know some technical terms can be confusing, below is a glossary of definitions that may assist.
The Lowest Available Brick Price is above the latest Brick Valuation.
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.
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.
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.
A BrickX property distribution at end of month, projected over a full year.
An increase in the value of an asset over time, which can result in positive returns
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.
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).
The Lowest Available Brick Price is below the latest Brick Valuation.
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.
A person who owns and holds Bricks in their BrickX Account. Also referred to as a Member.
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.
The value of an individual Brick within a BrickX Trust, incorporating the property, cash reserve, unamortised acquisition costs, and debt.
The Brick Exchange Pty Limited (ABN 27 600 762 749).
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'.
Means the financial services guide issued by BrickX Financial Services and its representatives. The latest version is available for download from here.
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.
Any property currently available on the BrickX Platform.
BrickX Property Portfolio
See My Portfolio.
A unit trust forming part of the BrickX Platform. Each BrickX property is held in a separate BrickX Trust.
This is the team who source, inspect and prepare all investment cases for the wider Property Team.
The placing of an order by a Member in the Order Book to buy Bricks available on the BrickX Platform.
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.
This is the capital loss from the sale of a property or an investment.
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.
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.
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.
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.
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.
A sum of money that is owed or due.
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.
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.
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.
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.
The value of a BrickX trust after debt. This number divided by 10,000 is the Brick Valuation.
This refers to the specified period of time that an Interest Rate is set for in relation to debt within a BrickX investment.
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.
This is the value of the cash you have in your Wallet available to pre-order and purchase available Bricks.
The strategy of borrowing money to purchase a property, otherwise known as leveraging. This normally takes place with use of a mortgage.
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.
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.
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.
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.
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.
Bricks held by the Initial Brick Holder.
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.
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.
Money paid in regular instalments at an agreed rate for the use of debt financing.
Refers to the findings of the Property Team relating to a possible property acquisition, having regard to BrickX’s acquisition strategy.
The Property Team summarise the key attributes of the acquisition strategy for the related property
Brings commercial experience across property, diversified investments, financial and technology industries to the BrickX Platform.
Also known as 'Brick Holder' is an active registered Member who invests in the BrickX Platform properties and becomes a Brick Holder.
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.
The availability or ease of turning an asset into cash.
This refers to the period of time of a Debt facility.
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.
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.
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.
The total value of Bricks using the lowest available Brick Price. Also referred to as ‘Total Portfolio Value’.
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.
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.
Shows all current open offers to sell Bricks. Each property has its own order book indicating Bricks available to purchase.
Means Product Disclosure Statement. The latest version is available for download from here.
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.
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.
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.
A property’s code represents its transaction name on the BrickX Platform. For example, the BrickX Enmore property code is ENMO1.
Made up of the Investment Team, Buying Team and Adviser Panel, and are collectively responsible for forming and executing the acquisition strategy.
The date of settlement of the acquisition of property.
The amount of rent derived from a property before any related expenses. Also referred to as Gross Income.
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.
Theta Asset Management Limited (ABN 37 071 807 684 / AFSL 230920).
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.
The placing of an order to sell Bricks . The seller specifies the number of Bricks to be sold and the sell price per Brick.
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.
Self Managed Superannuation Fund.
Strata title allows individual ownership of part of a property, where the part ownership will be the individual apartment.
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.
A detailed record in your BrickX Account of historical Buy Orders, Sell Orders, deposit, withdrawals and distributions.
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.
The amount of time a property may be unoccupied on average per year.