A new online platform is offering investors the chance to invest their superannuation funds into property for less than $70.
BrickX allows investors with a self-managed super fund to buy and sell ‘Bricks’ (individual interests) in specific properties, instead of buying properties outright.
CEO of BrickX, Darren Patterson said the platform grew out of an increasing appetite for SMSFs to have access and exposure to residential property and the need to simplify the process.
“Gone are the days of trustees having to scroll through real estate listings, attend auctions, appoint buyer’s agents of spend countless more hours trying to successfully complete a transaction,” he said.
“Through BrickX, people can invest into carefully selected residential properties literally from the comfort of their own home or office.”
Mr Patterson said he expected the “hassle-free nature of the platform” would be an “attractive channel for SMSFs to gain exposure to the Australian real estate market.”
There are currently 20,000 bricks being traded from two residential properties leased and located in Sydney, a statement from BrickX said. The company is also further assessing new properties from across the country to add to the platform.
“Investing into places like Sydney from other states (and vice versa) was traditionally in the domain of professional investors,” said Mr Patterson.
“The BrickX platform will break down traditional property investment barriers and will help facilitate greater state-to-state investments moving forward.
“I believe that SMSF trustees by their very nature have an appetite for diversity and appreciate freedom and investment choices.”
The first phase of the BrickX platform is open to wholesale investors, both individual and company – however the company intends to make BrickX available to retail investors in the near future.
BrickX said the properties on offer via the platform are “standardised high-quality residential properties in prime locations”. Dividends derived from the properties’ yields are distributed to investors on a monthly basis.
According to SuperGuide and the ATO, 15.9 per cent of all SMSF assets are holdings of direct property as of March 2014.