Join

Enter Details

Comment on stories, receive email newsletters & alerts.

@
This is your permanent identity for Business Insider Australia
Your email must be valid for account activation
Minimum of 8 standard keyboard characters

Subscribe

Email newsletters but will contain a brief summary of our top stories and news alerts.

Forgotten Password

Enter Details


Back to log in

You can pay $66 to buy into BrickX's new inner Sydney apartment

The communal rooftop terrace at BrickX’s Potts Point apartment. (Source: supplied)

Finnies winner BrickX has added another Sydney property into its portfolio, offering it at just $66 per investment unit to the public.

The Potts Point one-bedder, to be opened for pre-orders at midday Friday, follows last week’s release of a Surry Hills townhouse that’s now completely sold out at $95 per unit, which the company calls a Brick.

“We’re pleased to offer investors access to yet another inner Sydney property at an affordable entry price,” said BrickX chief executive Anthony Millet, adding that Potts Point was “surrounded by trendy cafes, bars and restaurants”.

The Challis Avenue “art deco” unit with no car space was purchased at $885,000 and has a $292,050 mortgage on it. BrickX’s equity was divided into 10,000 investment units to arrive at the initial $66 price per Brick.

After the initial Brick purchase, investors receive rental income from the property and the benefits, or pitfalls, of any future capital gains or losses. The Potts Point apartment is currently advertised for lease with expected rent of $650 per week, giving it a forecasted rental yield of 2.04%.

BrickX’s Potts Point apartment. (Source: supplied)

The flat is part of a secure 27-unit complex that includes a communal rooftop terrace with Sydney city skyline views and, according to the BrickX catalogue, boasts “preserved period features such as high ceilings and timber floorboards” and a separate study.

The Potts Point purchase is the startup’s tenth property, adding to a portfolio that already includes real estate in Sydney’s Surry Hills, Darlinghurst, Bondi Beach, Enmore, Annandale, Mosman and Double Bay; plus Melbourne’s Prahan and Port Melbourne.

The micro-investment service now has 5,254 investors and its Bricks have a median sale time of 5 hours and 22 minutes in its second-hand marketplace, where the startup charges a 1.75% transaction fee.

On Wednesday night, BrickX won the “excellence in establishing market presence: Australia” category at the FinTech Australia awards and a finalist in the “fintech organisation of the year” category.

BrickX’s Potts Point apartment. (Source: supplied)

CoreLogic head of research and BrickX advisory panel member Tim Lawless said Potts Point’s proximity to the city has seen it attract plenty of both buyer and renter demand.

“Considering the large captured working population within close proximity to Potts Point, the rental market has historically been strong within the suburb, which has contributed to ongoing low vacancy rates and high demand from both owner occupiers and investors,” he said.

“CoreLogic figures show unit prices in Potts Point have increased by almost 50 per cent over the past five years.”

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.