Brick X on Lateline, own Property for $100

Perhaps for the Port Melbourne valuation, 281 Esplanade East (3 bedrooms + study, 3 bathrooms + theatre room on 92sqm) today sold for $1.4M.

 

There is always intrinsic value in yield.

The problem here is people are paying over the market rates for the projected yields......as such lots of people are going to lose money in Brickx.......


(not the organisers of course.....they will make their 1.75% each time people buy and sell.....just like the ASX .....or as Eddie Murphy in Trading Places would put it....you guys are a bunch of bookies ).

 

Notice BrickX in an article - of course PC is already all over it.

@Angel13 how did the revals go?

 

I'm not sure how/why this would be too different to owning your own IP, and then when the market turns south, and you can't unload the property(ies) you own (if you need/want to).

 

This looks like a good option for a REIT, @Angel13 . I just looked it up quickly on a trading site - pity it came up classified as a 'Financials' sector product (I would have missed it's link to being a REIT).

I clearly need to look into REITs a lot more.......

 

Hey Brady

Sorry I just saw your post now.

They revalued 6 properties and the vals ranged from 0 to 7.4% increase. The house in Annandale had the highest increase. So far so good for me. The overall portfolio is 2-3% up.

I have also sold some bricks as I changed my mind about a particular apartment and they sold within 15 minutes so I'm quite happy with the liquidity side of things too.

The next reval will be Dec and we should get the figures in Jan.

 

Beware all BrickX investors, a warning to exercise caution when investing with startups and immature business models i.e. BrickX. Having dealt directly with BrickX and their property manager as a former strata manager, if you knew how lax and sloppy your properties are managed by third tier property managers you would be terrified. Hands on risk management is non-existent in my opinion coupled with appalling low level of understanding of compliance matters and duty of care to the BrickX investors. This can be a card house when the property cycle turns down or they are finally exposed on compliance matters.

 

Just curious, how did they fare with Covid lockdowns when many centres closed down for extended periods of time?

 

Looking at the brick price most of the older assets have stayed pretty much price neutral, the newer buildings in Clyde are all up slightly.

 

Bit of a shocker, I would say.

Total returns last two FYs:

• FY22 23%
• FY21 71%

I prefer to look at long-term performance.

Since I first bought in 2007 on their float (nearly 15 years ago), total returns have been 12.4% pa.

 

It just seems to be a way to buy investment property by paying huge directors’ fees!!

It’s a great idea for the directors.