Fintech startup BrickX has bought another property, a two-bedroom townhouse in Commonwealth Street in the trendy inner Sydney suburb of Surry Hills, for $1.3 million.
After debt is taken out, the remaining equity will be divided into 10,000 units that will be sold off to investors at $95 each.
Brick owners then receive rental income from the property and the benefits, or pitfalls, of any future capital gains or losses.
The property is currently rented out at at $860, giving a gross yield of 3.44%.
The startup’s CEO, Anthony Millet, described the Surry Hills location as “enviable”.
The ninth property purchase comes after last month’s addition of a one-bedroom apartment in inner east Sydney that cost just $57 per brick.
BrickX currently boasts a customer base of more than 5,000 people that have invested in eight residential properties, located in Sydney’s Darlinghurst, Bondi Beach, Enmore, Annandale, Mosman and Double Bay; plus Melbourne’s Prahan and Port Melbourne.
A BrickX spokesperson told Business Insider there are plans to expand the portfolio beyond Melbourne and Sydney, and that the property team is “actively looking” in Adelaide and Hobart.
Bricks can be listed for sale instantly through the BrickX marketplace for others to purchase, with the seller setting the price and the startup charging a 1.75% transaction fee. The median sale time, according to the live stats on the company website on Wednesday, is 4 hours and 45 minutes.