Several businesses, including BrickX, have devised a unique model where they buy a property and, metaphorically speaking, break it into “bricks” which investors can buy for around $100 each. Think of it like buying shares in a business.
Rental income is split amongst investors according to how many bricks they own. Investors can sell their bricks if they want to cash in on capital gains.
A quick glance at the BrickX website this month shows bricks for sale in six properties in Sydney and Melbourne, starting at $68 and ranging to $141. That’s pocket money compared to buying a property outright in those markets.
But this type of investment has some limitations that won’t suit everyone. You won’t get to choose your tenant or decide if the property needs upgrading. Perhaps the biggest limitation is that, unlike a traditional investment property, you can’t use your fractional investment as collateral to invest in other assets, reports Money Magazine.
As with any investment it pays to do your research and seek independent financial advice to make sure your hard-earned dollars work even harder for you in the long run.
Want the whole pie, not just a slice? View our current listings for sale.
Want to maximise your returns? Talk to us about landlording.