Bricklet has done for property what pizza slices has done for pizza, claims Darren Younger, CEO of the revolutionary technology property platform.
Instead of saving for years to buy a unit which could easily set you back $1 million in Sydney, Melbourne or Brisbane, Bricklet offers you the ability to buy a slice of the real estate – for as little as $20,000.
And the best bit? – your name is on the property title with other co-owners.
“Instead of buying the whole pizza, you can buy a slice of your favourite pepperoni flavour. And if you fancy eating three different flavours, you just buy three slices of pizza. This is exactly what Bricklet allows you to do – invest in a slice or two of the real estate,” says Younger.
With a generation of Aussies struggling with housing affordability, Bricklet is a way of getting your foot on the first rung of the property ladder. It is particularly appealing to millennials who want to invest in property but have limited funds.
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With a booming residential property market, Younger says there has been a growing interest from prospective home buyers and investors.
“We are seeing an increased demand from first-home buyers trying to enter the property market and from self-managed superannuation funds. Investors can also buy a portfolio of bricklets across different locations in the country.
“You choose which slices to buy and sell as you have complete control over your investment. You can sell your slice whenever you like without consulting other owners. Each party can own as little or as much of the property as they like.”
Since the company launched in 2019, Bricklet has sold $15 million worth of bricklets and is targeting sales of more than $50 million by next year.
“Buying bricklets is no different from buying a unit, except that you are buying small portions or fragments of the real estate, “ he says.
The company is currently marketing 60 bricklets in The Alfred, a short-term holiday rental property in Fortitude Valley in Brisbane. Each bricklet in a three-bedroom, three-bathroom, unit costs $22,000.
So how does it work?
When you decide to buy a bricklet in Alfred, you will have to go to the Bricklet platform and sign up for an account. There will be an identity check and if approved, all you have to do is deposit $22,000 plus an additional 6 per cent to cover for the conveyance fee and stamp duty. You are now an owner of a bricklet.
So what are the rental returns of a bricklet?
If all 60 bricklets are sold to investors and the total rental received in The Alfred is $6000 a month, then your pro-rata returns will be $100 a month or $1200 a year. This works out to be a yield of 8 per cent.
“A yield of about 8 per cent is pretty good for a holiday rental unit. The only risk is if the property is not rented out because of the current lockdowns. It is a risk faced by owners of all holiday rental properties, not only bricklet investors,” he says.
But there’s also capital growth. Over the last 25 years, Australia’s property market has increased by a whopping 412 per cent and with the market continuing to run hot, investors are probably in for a good ride, provided they take a long term view.
If after considering the fees and returns, you will have to determine whether it is a worthwhile investment. If you choose to sell out, then you simply log into your Bricklet account, and select the bricklet you want to sell and place it on the platform for sale.
When selling your bricklet, you will be charged 1 per cent of the selling price to cover the conveyancing costs for the transfer of ownership on the land title. How simple is that?
The joy about investing in bricklets is that it gives you the benefits of property ownership without the hassles, Younger says.
Since its launch, Bricklet trading platform has won the backing of heavy hitters such as Mirvac, Stockland, REA Group and News Corporation, with each company holding a stake of less than 10 per cent.
As Younger says, Bricklet is the only trading exchange platform which allows you to buy and sell tradeable slices of the brick and mortar property market.
For more information, visit bricklet.com.au.