You can buy a piece of this Sydney apartment for $57

BrickX’s apartment at McLachlan Ave, Darlinghurst. (Source: supplied)

The fintech startup that’s helping people locked out of the red-hot Australian real estate market has just purchased a new property that allows investments as low as $57.

BrickX today unveiled the eighth property in its investment portfolio, located in the inner eastern Sydney neighbourhood of Darlinghurst, which was purchased for $840,000.

The fintech acquires properties then divides the total equity into 10,000 units called Bricks that are on-sold individually to investors. This means customers can grab a piece of the new apartment with Bricks that cost $57 each, pocketing rental income and any future capital gains.

BrickX chief executive Anthony Millet said that $57 is the lowest-ever price for a Brick in the seven months that the company has been open to investors.

“Darlinghurst is renowned for its eclectic, vibrant mix of cafes, bars and restaurants and is within walking distance to the [central business district] with easy access to public transport, making it a very desirable suburb,” he said.

The company stated that the renovated one-bedroom flat on McLachlan Avenue is in a “small boutique block” and is already occupied by a tenant, meaning instant rental income for those that buy Bricks.

RD Data CoreLogic head of research and BrickX advisory panel member Tim Lawless said that Darlinghurst has performed consistently in recent times, with apartment prices rising 9.22% per year in the past five years.

“Rental yields tend to be higher than the broader Sydney average as well, with the typical Darlinghurst unit currently attracting a 4.2 per cent gross yield.”

BrickX’s apartment at McLachlan Ave, Darlinghurst. (Source: supplied)

Bricks in the new property are available for pre-order through a product disclosure statement on the company website.

BrickX currently boasts a customer base of more than 3,000 people that have invested in seven residential properties, located in Sydney’s Bondi Beach, Enmore, Annandale, Mosman and Double Bay; plus Melbourne’s Prahan and Port Melbourne.

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 a very liquid 3 hours and 56 minutes.

Millet told Business Insider earlier this month that the company is looking to expand the geographic diversity of its portfolio.

“I think there’s some pretty interesting opportunities coming out of Brisbane, Hobart and we’ll be looking in Perth as well,” he said.

However, Millet added that, while the strong growth in Sydney and Melbourne “can’t continue forever”, he believed prices in the two biggest cities would not crash.

“I feel pretty strongly that the good suburbs in Sydney and Melbourne are not going to fall backwards. Sure they’ll slow down, but I don’t think they’re going to go backwards.”

NOW WATCH: Tech Insider videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.