BrickX to offer Balmain house to investors for $140 per 'brick'
Fractional property investing platform BrickX is set to launch its 13th property, a house in Sydney’s Balmain, following its largely successful recent property acquisitions.
BrickX, which divides each property it acquires into 10,000 units it calls ‘Bricks’ and offers them to investors, said the Balmain house is only the second house in Sydney after Annandale.
The initial ‘brick’ is priced at $140 each and investors can start pre-ordering from July 20.
Median house prices in Balmain have increased by 13 per cent per year over the five years to the end of April 2017, according to CoreLogic figures.
BrickX pointed to a survey it conducted in March where 55 per cent of its investors wanted to a house to invest in next.
The remaining nine properties in Sydney are units and the other three properties are in Melbourne.
The latest property at 24 Clayton Street is a three-bedroom, one-bathroom house with high ceilings, hardwood floors and a private, landscaped courtyard.
The selling price of the house was $1,830,000, according to Corelogic RP Data. It previously transacted in 2013 for $1,287,000.
CEO Anthony Millet said he expected the property to be popular with investors looking for exposure to the sought-after residential real estate market in Sydney’s inner-west.
“We’re thrilled to provide access to this architect-designed freestanding cottage in Balmain at an entry price of $140 per Brick,” Millet said.
“Balmain offers an enviable lifestyle surrounded by water and parkland. It’s less than six kilometres from the Sydney CBD and is known for its great pubs, café culture and boutique shopping strip.”
CoreLogic head of Research Tim Lawless, who also sits on the BrickX adviser panel, said there is strong demand for properties close to the city that offer a village lifestyle.
“Balmain has a strong rental market which has contributed to ongoing low vacancy rates and high demand. With convenient access to the CBD via bus and ferry, the area is particularly popular with professional couples and families.”
BrickX, which released its six-monthly valuations last week, said the Annandale house rose in value by 7.4 per cent in the last six months.
“When you take into account the acquisition costs and cash reserve, the Brick Valuation in Annandale has increased 8.81 per cent to $112.84,” it said in a media release.
Since launching in September 2016, BrickX has over 6,000 active members with the median sale time of ‘Bricks’ sitting at around eight hours.
Investors can also part-own its properties in in Manly, Potts Point, Surry Hills, Darlinghurst, Bondi Beach, Double Bay, Mosman, Enmore and Annandale in Sydney, and Brunswick West, Port Melbourne and Prahran in Melbourne.