Investing platform BrickX offers its newest property in Darlinghurst for just $57 per 'brick'

Fractional property investing platform BrickX has added another property to its choices for investors, and says it is their cheapest yet offering with a ‘brick’ priced at $57.

The property on offer is a one-bedroom apartment at 12/84-90 McLachlan Avenue, Darlinghurst, on Rushcutter’s Bay border.

BrickX paid $840,000 for the apartment in an off-market deal.

It had been an investment for the previous owner, who had paid $475,000 in 2011.

In 2016 it had been a $675 a week rental, with a more recent $700 a week rental in January. A $700 a week rental would reflect a 4.33 percent yield for BrickX.

BrickX CEO Anthony Millet said it’s the lowest ‘Brick’ price yet. 

“We’re thrilled to offer investors a share in this inner-Sydney property at such a low price point,” Millet said. 

“With the Brick price starting at just $57, BRICKX continues to strive to make property investment affordable for all Australians”. 

BrickX buys properties and divides them into 10,000 units or “Bricks”. Investors may then earn capital returns and monthly net rental income in proportion to the number of Bricks owned. 

The platform allows members to choose when to invest and when to exit their investments by offering their ‘Bricks’ for sale on the platform. 

The one bedroom, renovated apartment on McLachlan Avenue is part of a small boutique block and is already tenanted at $700 per week with an estimated net rental yield of 2.13 percent per annum.

“Darlinghurst is renowned for its eclectic, vibrant mix of cafes, bars and restaurants and is within walking distance to the CBD with easy access to public transport, making it a very desirable suburb,” Millet added. 

Tim Lawless, head of Research at RP Data CoreLogic and an advisor to BrickX, said Darlinghurst has been a very consistent performer over the last decade. 

“CoreLogic figures show unit prices have risen over the last 5 years (to end of March 2017), on average, by 9.22 percent per annum,” Lawless said. 

“Rental yields tend to be higher than the broader Sydney average as well, with the typical Darlinghurst unit currently attracting a 4.2 percent gross yield.” 

It owns properties in Bondi Beach, Enmore, Mosman, Annandale and Double Bay in Sydney, along with Prahran and Port Melbourne, in Melbourne, each with a different ‘brick’ price.

The platform was officially launched in September 2016 and has more than 3,300 investors now, with a property portfolio of around $9.5 million.

Earlier this month, BrickX won the CANSTAR 2017 Innovation Excellence Award. 

BrickX has enabled the option of pre-ordering ‘Bricks’ in the Darlinghurst apartment, and investors can go to www.BRICKX.com and read the PDS to consider if BRICKX is right for you, it said. 

It has opened the pre-order for only eight days to secure the initial ‘Brick’ price of $57.

"With a demonstrated track record of growth and rental return, great proximity to the Sydney CBD, and an ongoing shortage of unit supply in the area, this acquisition fits nicely within the BRICKX investment mandate,” added Lawless.