MyBrix Property Investment
Invest in exclusive off market properties at up to 20% below market value, no acquisition costs or holding costs. and you can start from as little as $1,000.
Investment Highlights
Real Property is not just “bricks and mortar” and the land it sits on, a property also includes “Economic Rights”. Traditionally these rights have been sold as part of a property transaction as until recently there wasn’t a way to sell Economic Rights without selling the property.
Economic Rights are the rights to the income generated by a property, either through the rental of that property or the sale of that property.
Property Owners can now sell Economic Rights as fractional interests in their property to investors as an alternative to traditional bank principal and interest finance.
Selling Economic Rights allows all parties to benefit in the future capital gains in that specific property and provides a path for owners to bypass the bank and no longer need to have a bank loan to finance their property.
This is the new way to finance and invest in property and in the coming years will become a mainstream method to be used by property owners and investors as it delivers compelling benefits for both parties.
MyBrix is at the forefront of this revolution and has already developed and deployed the platform and ecosystem to deliver fractionalisation of Economic Rights, rather than fractionalisation of legal ownership, for any residential property in Australia, under a robust legal framework and an Australian Financial Services Licence. In MyBrix Economic Rights are called “Brix”
MyBrix has created a highly automated, light touch online platform that brings Property Owners and Property Investors together on a peer-to-peer basis and is now ready to start funding properties and development projects in Australia, then, once successful, move into other geographical markets.
A Brix is a Derivative, that is issued under AFS Licence No: 269868.
Unlike other products in the market, MyBrix does not purchase and curate properties for the sale of fractionalised interests. Property Owners bring their property (any property anywhere in Australia) to apply to list on MyBrix for funding. Just like they would apply for a traditional bank loan.
After an independent market valuation of the property, 10,000 Brix are created, up to 8,000 can be sold by the Property Owner to Property Investors. The Property Owner must always retain 20% of the Brix in the property.
Up to 8,000 Brix can be sold in a property to raise the funding sought by the Property Owner. For example, the owner of a property valued at $1M would need to sell 5,000 Brix @$100 each to fund $500,000.
Once investors have agreed to purchase all the Brix on offer from the Property Owner, the existing mortgage will be paid out and a new first ranking mortgage in favour of all Brix holders will be put in place.
MyBrix facilitates investment in Real Estate and offers investors the opportunity to realise gains from their investment, without any acquisition or holding costs. All acquisition or holding costs are borne by the registered property owner, not the property investor, meaning that investing in real estate through MyBrix is positively geared from day one.
It is important to note that MyBrix is not a managed investment fund, investors get to choose on a per property basis to invest or not and how much they want to invest in a specific property. All the information about each property is provided on the MyBrix platform including past growth and any risks or issues as well as the licenced valuers report. We also include our unique Investment Attractiveness Rating (IAR) out of 1,000 for each property to provide guidance as to the quality and return of the investment.
MyBrix is the perfect platform for investors to diversify their property holdings and spread risk over multiple properties and locations.
There are a number of ways investors generate a return on their investment, including:
- Capital Growth of the underlying property – investors can decide to hold their Brix for the full term of agreement with the property owner, which in most cases is a maximum of 10 years, or sell at any time before the full term, if a buyer for their Brix exists. At the end of the 10-year term the Property Owner must either sell the property or refinance at the current market rate (as determined by a licenced valuer). The proceeds are shared proportionally between all Brix holders. Some MyBrix products allow investors to get a head start (10% to 20%) on capital gains, through initial discounts off market value of the property offered by the property owner.
- Rental Returns – If the property in rented in any form (long term of short term) the net rental proceeds are shared proportionally between all Brix holders.
- Owner Buybacks – There is an inbuilt liquidity provision in MyBrix called Buyback. This means the Property Owner repurchases Brix from investors at defined rates that are higher than the price the investor initially paid for the Brix, generating a monthly return for the Brix that are sold each month. Investors can decide on an annual basis, to participate in Buybacks or not, holding longer will increase the return the investor makes from each Brix. Index rates ate typically in the range of 10% to 20%.
Investors on the MyBrix platform can potentially make returns up to 20%* per annum.
MyBrix allows Property Owners to fund their Owner Occupied or Rental properties directly by Investors. Property Owners list their properties on the MyBrix platform and investors, like you, decide if they want to invest in that property or not, based on its capital growth potential and/or monthly returns.
MyBrix is a true Bring Your Own Property (BYOP) solution for any residential property in Australia. Property Owners are attracted to MyBrix due to our No Interest or Repayment Model. This means quality properties that are not normally available for investment are presented exclusively on MyBrix.
Acquire an interest (Brix) in the property of your choice. Enjoy both capital growth and rental income (if applicable) as well as high returns through structured Buyback programs that the owner may optionally utilise.
When the time is right sell your Brix on the MyBrix platform to other investors or the property owner.
Benefits include
- Invest in Properties at up to 20% less than Market Value
- No Stamp Duty or other Acquisition Costs
- Secured by Mortgage against Australian Real Estate
- No Renters or Agents to Deal With
- No Maintenance Costs or Council Rates
- No Ongoing Fees or Charges
- Cash Flow Positive from Day One
- Increased Liquidity, sell all or part of your investment at anytime
- Quality Properties across Australia (that are not for sale)
- Return on Investment between 10% to 20% p.a.*
- Structured Buybacks for increased ROI
- Spread Your Risk over Multiple Properties, Cities, States
- Low Capital Requirements, start from as little as $1000
MyBrix has invested in not only the technology to deliver our Blockchain based system, but also to establish a sound financial and legal framework to protect the interests of all parties. MyBrix operates under an Australian Financial Services Licence (AFSL) and all properties are secured by a first ranking, fully registered Mortgage that is executed with all registered Owners of the Property.
Investor interests are protected via a Trust. There is full separation of operating company (MyBrix Pty Ltd) and Declared Trust (MyBrix Properties), regardless of what happens, the Mortgages held in trust are isolated and will survive.
Other protections include:
- Unapproved Sale Protection - a Mortgage condition is that MyBrix holds the rights to undertake the sale of every property
- Unapproved Rental Protection – a Mortgage condition is that MyBrix holds the rights to undertake the rental of every property.
- Participation Agreement - All Investors & Owners as part of account setup sign a “Participation Agreement” that sets out the rights and obligations of all parties.
- Capital Protection – A Mortgage Condition is that the Property Owners will always owe investors as a minimum the initial amount funded.
MyBrix does not provide any financial or other advice, you must obtain your own independent financial, legal and tax advice regarding the appropriateness of using any MyBrix Services, having regard to your personal objectives, financial situation and needs.
MyBrix Pty Ltd ABN 37 669 479 636 (MyBrix) is authorised representative 1304961 of Australian Financial Licencing Group, AFS Licence No. 269868 (the Licensee). The Licensee has authorised MyBrix to make offers to clients and prospective clients to arrange for the issue, variation or disposal of Brix by MyBrix Properties.
* Before Tax, based on an optimised portfolio of Brix
MyBrix is new to the market, but we have big plans and ambitions....
Mission
MyBrix is built on the ‘want’ to help Property Owners and Investors and to shape the future of property finance. We want to solve the many problems associated with acquiring a home or investing in property by challenging and changing how you access and acquire property in a way that is not achievable through traditional models.
Our Vision
To enable anyone to be a Homeowner or Property Investor, whether they are buying their first home or are a multi-property Investor. We are revolutionising the way Australian’s own and invest in property and create a new property funding paradigm.
Brian is a futurist, problem solver, a creator of innovative business models and has a long history in establishing and managing successful businesses. He is the founder and CEO of MyBrix, the world’s first no interest and no repayment property finance platform.
Prior to the creation of MyBrix, Brian had over thirty years’ experience in the Telecommunications sector, owning and managing an independent technology company. He previously worked for a Telecoms Carrier, a Telecoms Equipment Manufacturer and led over 500 telecoms consulting engagements. MyBrix utilises non-bank, peer-to-peer funding to deliver compelling benefits to both property owners and property investors. They aim to solve the many problems associated with acquiring a home or investing in property by challenging and changing traditional models. MyBrix will revolutionise the way Australian’s own and invest in property and create a new property funding paradigm.
Brian has a Masters Degree in Business and Technology, and is a long-term property owner and investor.
You are buying fractional interests in the Ecommonic Rights (Brix) in a specific property that you choose from all those listed on the MyBrix platform. You can invest in a single property or spread your risk over multiple properties across Australia, you are not tied down to any specific area.
You can select any property that meets your investment criteria. For example, your investment criteria might be high return, or it might be high growth or even both.
Using the tools provided in MyBrix you can search for properties that meet your criteria and invest in these easily.
Every property has 10,000 Brix, each Brix represents a fractional right to the future sale proceeds of a specific property. If a property has a market valuation of $1,000,000, then each Brix will have an initial market value of $100.
In MyBrix an IBO stands for Initial Brix Offer, and this is the process for listing a new property on the MyBrix platform.
To incentivize Investors to participate in IBO’s, the Property Owner discounts IBO Brix to Investors. The discount varies based on the Brix type, Standard Brix discount by up to 15% and Silver Brix discount up to 10% off market value.
As an example, Brix with an initial market value of $100 would be available to purchase at $85 (if a 15% discount was applied for the IBO).
This means an immediate 15% gain on those Brix purchased in an IBO.
There are multiple ways to generate returns of between 10% and 20% per annum from investing in Brix, across all property types
Below provides an indication of potential areas of return for Investors.
Capital Growth – Investors know that the average capital growth rate for properties in Australia over the past 30 years is approximately 7%. The important thing to note is that is the “average” which means 50% are below average and 50% are above average. The MyBrix process promotes quality properties in locations where above growth is present, allowing you to “cherry pick” the properties to suit your investment strategy.
Rental Returns – You acquire an interest in a Rental Property when you acquire Silver Brix and as such the net rental proceeds are shared proportionally by all Brix holders. MyBrix will distribute the net rental proceeds to Brix holders on a proportional basis each month. If you own (say) 25% of the Brix you will get 25% of the net rental proceeds. If the property’s net rental proceeds are $2000 per month you will get $500 per month.
Buybacks – We have two (2) types of buyback programs, Indexed Buybacks which apply to Standard and Silver Brix where the buyback price is indexed over the term of the MyBrix funding, and Gold Brix where the price is fixed to provide significant returns to Investors over a maximum 5-year term. Both these provide a monthly return on your investment.
Selling Brix – You can buy and sell Brix like shares for any price agreed between the buyer and seller on the MyBrix Trading Platform (coming in 2024).
The Maximum term a Property Owner can have a MyBrix facility is 10 years from settlement, providing Investors with a defined maximum investment horizon.
All Investor interests are secured via a first ranking mortgage on the property, additionally our exclusive rights to sell and rent the property mean that we can ensure all properties achieve the maximum sale proceeds possible for the benefit of all Brix Holders (including the Property Owner). We also ensure all rental returns are distributed proportionally to all Brix holders.
The Property Owner remains on the title of the property, they continue to be the Property Owner and bear all responsibilities of a Property Owner including maintenance and insurance obligations as well as all council and other fees. Regardless of how many Brix you own in a property, you are never the Property Owner of the property. The Investor owns a right to the future sales proceeds of the property.
Investors pay no fees or charges to buy Brix during an IBO, nor is there any MyBrix levied setup or establishment charges to create or fund your account. A fee is also charged for selling Brix on the trading platform as well as a portion of the selling fees when the property is sold (similar to what you would expect to be charged for selling a standard residential property).
No, MyBrix is not a lending platform, it is a peer-to-peer service where Investors buy Brix in specific properties.
Property values go up and down all the time, but on average over the long term have always increased. Property values have averaged around 7% growth per annum over the last 30 years. Should the market value of the property decrease through market-based forces, the decrease is borne equally by all Brix holders.
The amount funded through MyBrix is the minimum the Property Owner needs to provide to Investors at sale time. If the net sale proceeds (after selling fees) is less than the amount funded the Property Owner will need to provide these additional funds as part of the property settlement for MyBrix to release the mortgage.
There are many variables that may result in a MyBrix listing to not reach the required funding. A significant issue is the attractiveness to Investors. If Investors do not find a property sufficiently attractive for investment, the Property Owner may consider increasing the attractiveness of their property by offering some portion of the property as Gold Brix or featuring their property to Investors through marketing highlights on the MyBrix platform. If the funding is unsuccessful all Investor funds are released from their hold status. Only 100% funded properties move to settlement.
The Property must be either sold or refinanced. The Property Owner may refinance with anyone (including MyBrix). Refinancing with MyBrix would be via a new facility with a new 10-year term. The property will be revalued (for Market Value) at the start of the new term and all original Investors paid out based on the new valuations.
Should they refinance with another provider all MyBrix Investors must be paid based on current market value, as determined by the MyBrix valuation.
Yes, the Property Owner can at any time do a compulsory buyback of all Brix from all Investors, the buyback price will be set at the market valuation at that time plus 10%.
To commence a “compulsory buy back” the Property Owner must provide evidence to MyBrix that they have access to the funds needed to undertake the compulsory buyback.
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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