How do BRICKX fees work?
How do BRICKX fees work?
Investing in property can be expensive, and whether you have been saving up for years to get to a deposit or not, every dollar counts. So when you decide to dip your toes into the property investment market, it can be disheartening when you realise just how much you may need to pay.
BRICKX challenges this pattern by creating an easy and affordable approach to property investment. Not only does the BRICKX Platform reduce the time taken to make the investment from several months to a few minutes, but the cost of accessing this investment product is affordable!
So what is the BRICKX fee structure?
Before you dive head-first into property investment on the BRICKX Platform, it’s important you have a thorough understanding of our fee-structure.
Buy & Sell Transaction Fee of 1.75%
- When you buy Bricks, we charge a 1.75% fee on the purchase price of the Bricks.
- When you sell Bricks, we charge a 1.75% fee on the sale price of the Bricks.
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. You see? It really is simple!!!
Are there any fees relating to the property, and how do they affect me?
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 income (primarily rental income) of the property, prior to any distributions being paid to Brick Holders. In the event that the gross income in a particular period doesn’t cover the expenses, we will pay the expenses out of the Cash Reserve.*** Please see the calculation below to get more detail. In addition, you can see a full breakdown of the forecasted costs per property on the Monthly Distributions Tab on each property.
Note: Each property has different levels of expenses and should be viewed on the monthly distributions tab within each property.
All costs relating to the property are derived from gross rental income, and Brick Holders are not required to make any further payments towards these expenses.
*Property management fee is charged in line with industry standard 6%+GST.
**Annual audit and valuation fee is charged at $0.09 per Brick per annum
***Each property has a Cash Reserve, which is raised at the initial purchase of a property and, as it is drawn down, replenished over time from the gross income of the property.. The main purpose of the Cash Reserve is to cover any unexpected expenses relating to the property or expenses over any vacant period.
What else do I need to know?
On registration to the BRICKX Platform you are required to deposit a minimum of $75 into your BRICKX wallet to activate your account. This includes a one-off $10 application fee to become a Member of the Platform. The $10 is credited back to you in your Digital Wallet along with the rest of your initial deposit, and made available to you to put towards your first Brick purchases. We just needed to let you know that!
You should read our Product Disclosure Statement for further details around fees.
Other useful resources
BRICKX products are issued by Theta Asset Management Ltd (ABN 37 071 807 684) (AFSL 230920) (Theta). The Brick Exchange Pty Ltd (ABN 27 600 762 749) (BRICKX) is the manager of the BRICKX Platform (ARSN 613 156 433). BRICKX is an authorised representative (No. 001000043) of BRICKX Financial Services Limited (ACN 616 118 088) (AFSL 494878) (BRICKX Financial Services). The advice provided in relation to the BRICKX Platform, including on the BRICKX Platform website, is general advice only and has been prepared without taking into account your objectives, financial situation and needs. Before making any decision in relation to BRICKX or any products offered by BRICKX you should read the Product Disclosure Statement (PDS) and consider whether they are right for you. The PDS is available at www.brickx.com/pds. Past performance is no indication of future performance. Any forecasts are subject to change without notice. Income and capital returns are not guaranteed. By accessing and using this website, you agree to be bound by our terms and conditions. The opinions and beliefs expressed by the authors and forum participants as part of this communication do not necessarily reflect the opinions and beliefs of BRICKX, BRICKX Financial Services or Theta. .