Discounted BrickXs on offer - but in thin volume

Discounted BrickXs on offer - but in thin volume
Discounted BrickXs on offer - but in thin volume

BrickX, the fractional property investing platform, is seeing discounted prices available on the ‘brick’ valuations on many of its properties.

Discounts on official valuations were available on eight of its property offerings.

BrickX divides each property it acquires into 10,000 units it calls ‘Bricks’ and offers them to investors. 

The largest discount per brick was for a two-bedroom unit at 7/22 Ocean Avenue (picture above) in Sydney’s Double Bay. The discount is 2.5 percent for a brick priced at $96. 

The discount is measured as a percentage of the official ‘brick’ valuation price. In this case, the brick valuation price is $98.46. 

Another two-bedroom unit, this one at Manly’s 4/8 James Street, has its bricks discounted by 2.3 percent. The lowest available brick is priced at $85 now.

In Bondi Beach, the discount on a brick for a two-bedroom unit at 2/5 Ramsgate Avenue is 2.19 percent. The lowest brick is priced at $98.

In Sydney’s Mosman, there is a discount of 1.69 percent on each brick of $141 for a two-bedroom unit at 18/5 Parriwi Road.

In Sydney’s inner suburb of Surry Hills, a two-bedroom unit has its bricks being offered at a discount of 1.05 percent at $94 per brick.

Another Melbourne property, at three-bedroom house at 10 Shamrock Street in Brunswick West, has its bricks discounted by 1.01 percent at $98 per brick.

A house in Sydney's Annandale at 109 Albion Street has its lowest priced 'brick' being offered at a discount of 0.74 percent to the 'brick' valuation. The lowest brick price is $112. 

Another house, this one a three-bedder at 24 Clayton Street in Sydney’s waterside suburb of Balmain, has bricks being offered at a 0.71 percent discount at $139 each.

The same discount of 0.71 percent is being offered for a two-bedroom unit at 4/6 Miller Street in  Melbourne’s Prahran. The price for the lowest available brick is $123.

Not all properties held by BrickX have discounts though.

Property Observer counted five properties where bricks are being sold at a premium. One at Enmore is trading at an eight percent premium to valuation. There also are properties in Adelaide’s St Peters, Port Melbourne, and in Sydney’s Potts Point and Darlinghurst at a premium.

At last count, BrickX had 8,256 active members while its properties had a total value of $16.87 million.

During the release of its six-monthly valuations in July, BrickX said the Annandale house rose in value by 7.4 per cent in the last six months, the most for any of its acquisitions. 

Investors are in control of selecting the price at which they wish to sell their Bricks, its CEO Anthony Millet recently advised.
 
"Whilst property is generally a medium to long term investment, the opportunity to put your Bricks up for sale does give a lot of flexibility to the investor in exiting should their investment strategy or personal circumstances change. 
 
"At any point in time we have a number of sellers who are selling their bricks (as is to be expected with any investment, shares, or pulling money out of a savings account etc) which also provides liquidity opportunities for buyers to enter existing investments."
 
He said the majority of these transactions occurs within a +/- 2% premium or discount to the last valuation (last conducted in July 2017).
 
"To date the median time it has taken someone to sell their position has been circa 14 hours - which is pretty amazing when you consider how long it takes to sell an entire property.
 
"In addition, customers are only paying a 1.75% transaction fee when they sell, which considered against the cost of selling a property can often be 4%+ (when you take into account agent fees, lack of rent/voids periods, remedial work) this compares very favourably to the traditional way of dealing in property.
 
"New and existing investors also see Brickx listed for sale at a discount to the last valuation as a good opportunity to enter the property market or add to their position and build their portfolios.
 
"As at now, Bricks listed for sale at discounts relate to 0.6% of the total value of the BRICKX portfolio, so are relatively thin in volume," he said last week.

 

 

Tags: 
Price Decline Brickx

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