This was in the media earlier this week – an offer for as little as $100 for a share in a residential property. The only winner here is the promoter who is going to take 2.75% of each and every $100. Those who put the $100 in will find it very difficult to get any money out. The property would have to be sold at some point in the future to realise any cash.
BRICKX buys properties and then divides the ownership of each property into units, which are called “Bricks”. A property purchased for $1 million, for example, is divided into 10,000 Bricks worth $100 each.
This then, would also be after selling fees and capital gains tax – assuming of course that there is any equity! In the meantime there would have to be someone paid to look after your interests during the course of the renting period.
The problems are, when do you decide to sell? This would have to be a decision by everyone involved.
Problems, problems, problems!
If you are battling to get into property simply see your Property Mentor who has many ways that we have used successfully to get people onto the property ladder.
While I am at it – if you are a parent or grandparent, you are sitting on a gold mine in property and loving it. What about your next of kin who aren’t so lucky? How do you help them get on the property ladder? Contact your Property Mentor for an easy step by step guide and equally a step by step guide to avoid the many traps in this process.