Property Investor FAQ

MyBrix is an innovative way to invest in property that breaks away from outdated traditions, therefore those new to investing in MyBrix typically have questions. In this Blog we provide answers to the Frequently Asked Questions (FAQ) for MyBrix Property Investors.

1. What am I investing in?

You are buying 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.

2. What are Brix?

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. 

Refer to Brix types for more information on the types of Brix.

3. What is an IBO?

In MyBrix an IBO stands for Initial Brix Offer, and this is the process for listing a new property on the MyBrix platform.

4. Why should I participate in an IBO?

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. 

Refer to our calculators to understand more about the returns possible for different types of Brix and structured buyback schemes.

5. If there are no repayments & no interest, how do I make money?

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. 

Refer to our calculators to understand more about the returns possible for different types of Brix and structured buyback schemes.

  1. 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.
  2. 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.
  3. 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.
  4. 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).

6. What is the maximum term of a MyBrix Facility?

The Maximum term a Property Owner can have a MyBrix facility is 10 years from settlement, providing Investors with a defined maximum investment horizon.

7. How is my investment Protected?

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.

8. Who owns the Property?

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.

9. What fees do MyBrix charge?

Investors pay no fees or charges to buy Standard or Silver Brix during an IBO, nor is there any MyBrix levied setup or establishment charges to create or fund your account. The purchase price for Gold Brix includes a MyBrix fee for undertaking the additional tasks to enable Gold Brix. A fee is also charged for selling Brix either through buybacks or 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).

10. Am I lending Money?

No, MyBrix is not a lending platform, it is a peer-to-peer service where Investors buy Brix in specific properties.

11. What happens if the property goes down in Value?

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.

12. What happens If the property doesn’t get enough funding from Investors?

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.

13. What happens at the end of the MyBrix Term?

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.

14. Can the Property Owner terminate the facility before the end of Term?

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.

15. What Happens if the Property Owner Dies?

If the property is held as a “Joint Tenancy” the MyBrix facility will continue for the balance of the term with the surviving joint tenant as the beneficiary regardless of any will.

If there is a sole Property Owner or some other type of Property Owner, we will commence the sale process as soon as possible after being notified, with the sale proceeds distributed proportionally to all Brix holders, including the Estate of the deceased.

16. Who sells the Property?

MyBrix will fully manage the sale process end to end for an agreed fixed portion of the Sale proceeds.

MyBrix will appoint a Licensed Real Estate Agent that is local to the property to undertake the sale as well as a Conveyancer. MyBrix will also manage the sale process on your behalf, e.g. auction or standard sale and reserve price.

MyBrix will also implement (in conjunction with the appointed Real Estate Agent) a marketing campaign designed to maximise the sale price of the property for the benefit of all Brix holders.

17. What stops the Property Owner secretly renting out the property and keeping the Money

As per MyBrix Terms and Conditions MyBrix has the exclusive right to manage the rental of all MyBrix properties.

Only properties funded by Silver Brix can be rented, a Property Owner of a Standard Brix funded property cannot rent the property without paying a conversion fee to Silver Brix.

We have put in place a number of checks to ensure that no MyBrix property is rented without approval and the proceeds available of all Brix holders.

Renting (short or long term) any part of a property financed under Owner Occupied funding (standard brix) is strictly prohibited with financial consequences for the Property Owner in breach of this condition.

Once converted to Silver Brix, as per the conditions of the MyBrix facility, MyBrix will fully manage the rental process end to end, for an agreed fixed portion of the Gross Rental proceeds.

MyBrix will appoint a Licensed Real Estate Agent (or an Agent in the case of AirBnB) that is local to your property to manage the rental on behalf of all Brix holders.

All net rental proceeds will be distributed to all Brix holders (including the Property Owner) monthly on a proportional basis.

18. Can the Property Owner improve the Property?

Yes, property improvements are viewed as good for all Brix holders as it improves the value of a property at no cost to the Investor and will potentially increase sales proceeds in which you share fractional Property Ownership.

Any improvements will need to be approved by MyBrix prior to the commencement of any work (which would not unnecessarily be withheld).

19. Can the Property Owner build a Granny Flat?

Yes, property improvements are viewed as good for all Brix holders as it improves the value of a property at no cost to the Investor and will potentially increase sales proceeds in which you share fractional Property Ownership.

They can build a Granny Flat after seeking MyBrix approval (which would not unnecessarily be withheld) at their cost and after gaining all the required approvals from your local Authority.

Should the Granny Flat be rented this will be facilitated by MyBrix and rental returns distributed to all Brix holders. If the main house remains their Principal Place of Residence (PPOR) the Property Owner does not need to convert their Standard Brix to Sliver Brix.

20. What happens if the Property Owner improves the property and it increases in Value?

Any change in the market value of the property is reflected in the price of each Brix, regardless of how the value increase was created. If the increase in value is due to property improvements that value increase is shared across all Brix holders proportionally.

21. Who pays for repairs and other costs such as Rates?

The Property Owner. As a rule, if the Property Owner pays for something when they have a bank loan, you will continue to pay for it under MyBrix funding.

All repairs, rates, taxes and levies as well as all costs associated with keeping the property in the same or better condition as of the date of funding, is at the cost of the Property Owner.

22. What about Insurance?

The Property Owner will need to fully insure the property at their cost. It is a condition of MyBrix funding that every property is fully insured at all times for an amount that is acceptable to MyBrix and that MyBrix is noted on the policy as an interested party. The Property Owner will need to provide copies of insurance to MyBrix initially as well as annually to comply with the terms of the MyBrix funding.

23. Can the Property Owner live in a Rental Property?

When Investors acquire Silver Brix in a rental property the expectation is for the Investor to receive both capital gains and rental returns, therefore this structure must be maintained throughout the entire MyBrix finding term.

Should the Property Owner decide to live in a property that was funded under the MyBrix Rental Property Owner process (Silver Brix), they must pay the Market Rent to MyBrix who will fully manage the Rental process end to end, for an agreed fixed portion of the Gross Rental Proceeds.

MyBrix will appoint a Licensed Real Estate Agent (or an Agent in the case of AirBnB) that is local to the property to manage the Rental on behalf of all Brix holders.

MyBrix will distribute the net rental proceeds to all holders of Brix in the property on a proportional basis each month. If the Property Owner has (say) 25% of the Brix they will get 25% of the net rental proceeds. If the property net rental proceeds are $2000 per month, they will get back $500 per month in net rental proceeds with the remainder distributed to Investors who hold Brix in that property.

24. Is my data Safe?

Yes, all our systems and processes are certified to the international standard for Information Security Management Systems (ISMS) which is called ISO 27001.

MyBrix uses a public Blockchain to record all Investor transactions and holdings, therefore these transactions are both transparent and immutable, providing the highest possible protection for your investment. No personal identifiable information is recorded on the Blockchain.

MyBrix does not provide any financial , Tax 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.You should not make any decision, financial, investment, trading or otherwise, based on any of the information presented in this blog, any and all information presented in this blog is provided for information only and any action you take as a result is at your own risk.