Brick X on Lateline, own Property for $100

Did you hear them mention the "other companies in the Fractional Property space - Domacom" - but then forgot to disclose their relationship...

Empower Wealth Residential Model Portfolios | DomaCom Ltd

Side note - Domacom is listed on ASX - and it's all been downhill. 40c in Nov 2016 down to 14c. Ouch!

 

They mentioned Domacom about 3 times, interestingvthat they didn't disclose. I had a quick look - bigger buy in, bigger fees and I wasn't a big fan of the properties.

 

I am with you. I would rather buy into a REIT than something like BrickX.

For example, I own "bricks" in a Childcare Centre REIT which owns around 200 childcare centres across Australia, total value around $500M, total annual compound return for last three years over 33% pa, 100% occupancy, average lease nearly 10 years, ...

Current cost of a "brick" is around $2.10 each.

For both our children, we used their child endowment money to buy shares in Westfield Shopping centres. Now, over 30 years later, both of our kids still own these shares.

 

Childcare seems to be a booming industry. ... along with aged care facilities and nursing homes.

Not advice.

 

When I was in business, I had a business colleague who was the CEO of an organisation who owned and operated multiple childcare centres.

I always thought buying a childcare centre would be a good addition to our business and property portfolios.

Never got around to it. Instead we bought into a REIT and now a share of 196 childcare centres .

 

Arena REIT

 

Someone will start buying them based on yield.....

 

I looked into it last year (was thinking about buying some for nephew and niece to get them interested in educating themselves about inflation and interest and yields etc.....turns out you cant as both under 18).

My only issue with them was that you seemed to pay over the norm for PM services etc....for multiple properties etc they should be able to organize better than market rates.....instead they are paying over market rates (wonder about mates rates etc).

But apart from that structure etc are well put together and apart from opaque purchasing methods they are buying a good cross selection of properties so you could "do worse" while building up your capital for buying your own.

 

Yes, rather forgetful of them.

I couldn't see much on Domacom on my quick look - not even the properties. Did you sign up to see that? Seemed more of a wholesale type arrangement that Financial Advisor would sell, rather than individual focus of Brickx.

 

Their PM fees are 6% - don't think it's too over the top. Currently they only have 7 properties, but in different suburbs in Sydney and Melbourne so I would think a little difficult to negotiate a bulk discount. Maybe later they could.

 

this link is to a table of "Fund names" but i can only assume that the addresses in the table are those of many of the investment properties
DomaCom Fund Unit Prices | DomaCom Ltd

 

wow - has anyone been watching the brickx prices? over the past week the number of investors has gone up by over 25% (from 3200 to 4300) and in the past few days with all the publicity, 4 of the 7 properties now have an available brick price between 3-27% above the valuation. people are seriously buying bricks in double bay at a 27.3% premium!

 

So if you buy a brick for $100 but later decide to sell it for whatever, say $120, you have to also pay $400+ fees? I'm sure I read that on this thread but can't see it now?

 

no it's a flat fee of 1.75% for each transaction, either buy or sell

 

Tulips...

 

That sounds like a great investment Kierank. I always learn valuable things on this forum

 

I know I can see some silly people are going to loose money and BrickX will end up getting a bad wrap. It very clearly shows % above or below valuation. What's wrong with people when you can still buy bricks in 2 properties below val.

I just noticed that they have now put the below val ones up top.