How do BRICKX fees work?

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10 Responses

  1. Sal says:

    Are fees included in brick price, Do I need to pay out of my own pocket

    • Brad BRICKX says:

      Hi Sal, BRICKX charges a 1.75% transaction fee when you buy Bricks and a 1.75% transaction fee when you sell your Bricks. The transaction fee is not included when looking at Lowest Available Brick Price on the properties page. When you go to buy a Brick, a transaction fee will be shown so you can see exactly how much you need for the purchase. Whether you hold your Bricks for 2 months or 2 years, you’ll only ever pay 1.75% of the transaction value each time you buy and sell. There are no funds under management, performance, contribution, service, or withdrawal fees.

      As an investor, you will never be hassled with any property related expenses. BRICKX manages the properties on your behalf, including all related bills, strata, council tax, landlord insurance, property management etc. All expenses relating to the operating and running of the property are deducted from the gross rental income of the property, prior to any distributions being paid to Brick Holders.

  2. Sam says:

    Will this benefit me in terms of negative gearing at tax time?

    • Brad BRICKX says:

      Hi Sam, It is expected that the loan to value ratio for any debt funded BRICKX Trust will not exceed 50%. It is intended that each BRICKX Trust will be conservatively geared at all times to assist with achieving positive cash flow for the relevant trust. Details of each mortgage can be found on the Capital Returns tab of each property listing and in the PDS. BRICKX currently holds Interest Only mortgages, which means no principal repayment is required at this stage. The interest repayments are deducted and paid from the Gross Rental Income from the property, and therefore it is expected that the geared property will provide a positive cashflow through rental distributions.

      Your returns are taxable. At the end of each year we will provide you with a statement of the distributions, interest and depreciation allowances you have earned, net of our fees, to make it easy to complete your tax return. Please refer to our Product Disclosure Statement for further information regarding tax on your BRICKX Account. The tax implications outlined in our Product Disclosure Statement are general in nature, and do not take into account your specific circumstances. You should obtain specific taxation advice relating to your particular circumstances from a suitably qualified taxation advisor before investing.

  3. tony says:

    How long will it take for the return to equate with the initial investment?

    • Brad BRICKX says:

      Hi Tony, each Brick you own entitles you to a proportionate share of the property’s net income. In addition, the BRICKX Platform allows Brick investors to claim any benefits of the relevant property’s capital returns when either the Brick and/or the property is sold. As a Brick Holder, you determine the number of Bricks you wish to sell and the sale price per Brick. By providing all Brick Holders with the most recent property valuation this helps give an indication of the value of Bricks and acts as a guide for both buyers and sellers. You will find more information on our FAQ page as well as our Education Centre.

  4. John Barnabas Susuve says:

    Could i use my Brickxx funds towards purchasing a property?

    • Anthony Millet says:

      Hi John, an investment on BRICKX is a financial investment. You would need to seek advice on how you choose to use your funds, with regards to acquiring a property or any other purpose.

  5. John Barnabas Susuve says:

    Can i use my Brickxx investments towards deposit of owning a property in Australia?
    John B Susuve

  6. MSVCP140 says:

    🙂 OK !

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