Fractional property investment comes to Adelaide

Font size :



Buying pieces of property, as opposed to buying entire homes, is fast gaining traction among younger Aussies who’re seeking innovative ways of entering Australia’s increasingly pricey housing markets.

Last week, BrickX, the Sydney-based fractional investment company, launched its first property in Adelaide. This is the company’s first venture outside Sydney and Melbourne, and is part of its broader expansion into other capitals over the next 12 months.

BrickX’s platform typically divides a residential property into 10,000 units or “bricks” which investors can buy for as little as $100. These bricks are essentially shares or stakes in the property, and the buyers share in the property’s capital growth and expenses.

BrickX’s new Adelaide property is the 14th in its $17m portfolio, and is situated in leafy St Peters, which has averaged 8.8% annual price growth over the past 20 years. The minimum entry is one brick, which for a two-bedroom St Peters house costs just $74.  

Anthony Millet, CEO of BrickX, said the platform has enabled young people to educate themselves about property investment without the huge outlay required to purchase a home outright. It also protects their savings against sharp house price surges.  

The company says more than half of its 6,500 users are under the age of 35.

“Millennials getting into the market for the first time are able to save their home deposit in line with the housing market,” Millet said.

Fractional property investment, also known as property crowd-funding, is still a new concept in Australia, and some people have raised concerns about selling units later on. Millet said BrickX’s track record showed this was not a problem.

“The median time for someone to be able to sell their bricks is around 12 hours, which is a hell of a lot quicker than it takes to sell your house,” he said. “Our platform allows investors to diversify across several properties.”

BrickX is one of the only two fractional investing businesses currently operating in Australia. The other firm – DomaCom – has been expanding into retirement communities and agricultural property.  
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Sep 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords