IT manager Dean Leong loves to invest in property. As he already has two mortgages, he decided to invest in a $21,200 Bricklet in a residential development in Victoria as part of his self-managed super fund.
“With two mortgages – $400,000 for my family house in Tarneit and another $480,000 for an investment property in Werribee – I am unable to get another mortgage,” he told Really Simple Money.
“So after chatting with friends, I decided to buy a Bricklet as part of my self-managed super fund. To set up the SMSF, I rolled over and transferred $20,000 from my employer superannuation fund to my self-managed super which then paid for the Bricklet.
“I expect to get a rental return of about 3 per cent when the residential development is completed. The idea is to hold on to the Bricklet, maybe buy another two more Bricklets as part of my self-managed super fund.”
Mr Leong’s Bricklet is part of Burwood Brickworks development which houses six levels of units in the Plaza Garden Apartments.
“Buying Bricklets is a good way for people like me who want to invest in the property market and have someone else manage it. My Bricklet investment is in a good residential location with good facilities to schools and transport. I am testing the market and will monitor how the Bricklet performs over the next two to three years.
“Paying $20,000 for a slice of the property is not too expensive. My name is on the property title and I can easily sell the Bricklet on the property platform.”
He also feels investing in a Bricklet is a good starting point for younger people who do not have the financial clout to buy a property.
The 38-year-old father of two young children said that the pandemic has created some uncertainty for his investment property in Werribee which has been empty for the last three months.
“Nobody wants to rent it because COVID-19 has forced more people to work from home. I was previously getting a monthly rental of $1500 for my four bedroom investment property.”
Bricklet launched in 2019 offers investors the ability to buy a slice of the real estate for as little as $20,000. Your name is on the property title with other co-owners.
As Bricklet CEO Darren Younger said: “Buying Bricklets is no different from buying a unit, except that you are buying small portions or fragments of the real estate.”