General Information

  • IRR%: 8.39
  • CoC%: 1.58
  • Minimum: 47 AUD
  • Type: -
  • Asset: -
  • Investors: 839
  • Start Date: 2018-08-09
  • End Date: -
  • Target: 470k AUD
  • Completed: 100%

Additional Information

  • 2/11 Arnold Street
  • 5062
  • SA
  • Australia

**Overview** * In a well-established Adelaide suburb, popular with families * 2 large bedrooms and updated bathroom * Spacious living area with open fireplace * High ceilings and polished floorboards * Outdoor entertaining veranda and pergola * Low maintenance garden and off-street parking * 7.54% annual compound average growth over the last 20 years (source: CoreLogic SA2 index) * Property was purchased with 27% gearing **The Location** Kingswood is a suburb of Adelaide that is characterised by wide tree lined streets and a mix of period homes and 1950/60s styled homes. Its proximity to the city and nearby amenities is attractive for many families. The property is 10 minutes’ walk to Mitcham Square Shopping Centre, which features cafes, restaurants, shops, a cinema and gym facilities. Kingswood is a 15 minute drive or a 20 minute bike ride to the Adelaide CBD. The house is in the catchment area for Unley High School and is near several public and private schools, including Mitcham Primary, Urrbrae High School, Scotch College and Mercedes College. **The Investment Case** This property was purchased prior to auction, with contracts exchanged on 4 August 2018. The property was acquired for $567,500 and will include 27% gearing ($170,250). Acquisition costs (including stamp duty, legal fees and buyers’ agents fees) are estimated to be $57k and will be subjected to linear amortization over 5 years (see Capital Returns Tab for a breakdown of Acquisition Costs). In addition, an estimated cash reserve of $15k is being raised for the investment, giving a total Trust value of $640,250 and an Initial Brick Price of $47. If the Acquisition Costs are above/below estimates, these costs/surpluses will be funded from/added to the Cash Reserve. A mortgage for $170,250 was used in financing the initial purchase. The mortgage is a 30 year loan, at a variable rate of 4.54%, with the first 5 years interest only, and the following 25 years principal and interest repayments. The BRICKX team will continue to monitor interest rates throughout the life of this investment and act in the best interests of Brick Owners. At purchase, the property was occupied by the owner. A property management team has been assigned to this property, and they will start to market for a tenant as early as possible to minimise any vacancy period after settlement of the purchase. It’s estimated that the property will be rented for approximately $390 per week, providing a forecasted gross yield of 4.31% and net yield (paid monthly) of 1.51%, after expenses. As of June 2018, Kingswood had a historical annual compound growth rate of 7.54% per annum, based on the last 20 years (source: CoreLogic SA2 index). Past performance is not an indication of future performance. Fluctuations in Brick Price will influence the effective return, and you should regularly refer to Returns and Valuation information on the summary page for the latest data. **Property Management** We use a third party managing agent to manage the properties on behalf of Brick Owners. Brick Owners won’t be required to take an active part in managing a property and will not be consulted for any decisions relating to a property. We will operate within the management agreement framework for all properties so that Brick Owners are left only to manage their portfolio. We pro-actively manage all BRICKX properties to ensure that they are, as much as possible, consistently tenanted and kept to the highest standards to protect Brick Owners’ investment, both from a capital and rental income perspective. There may be periods of time where a property is vacant, and expenses during this period are covered by a contingency fund that provides over 3 months of cover (this is for expenses only and not for the payment of any net rental income to Brick Owners). We have also put in place procedures to ensure that before a lease expires, the tenant will be asked to confirm their position with regards to the tenancy agreement. If the tenant does not sign a new lease within a certain time, the property will be advertised for lease. The rental price may be slightly reduced in order to attract a new tenant if necessary. We’ll always seek to achieve a balance between the forecast yield and market conditions to minimise the risk that the property is vacant for extended periods. **Important Notice** *Forecasts may not be achieved and are not a reliable indicator of future performance. The advice provided to you is general advice only. It’s been prepared and presented without taking into account your personal objectives, financial situation or needs. Before making any decision in relation to BRICKX or any products offered by BRICKX you should read the Product Disclosure Statement (PDS) and consider whether BRICKX is right for you. BRICKX products are issued by Theta Asset Management Limited (ABN 37 071 807 684) (AFSL 230920) (Theta). Neither BRICKX nor Theta, guarantees any rate of return or the capital value or return of any money invested. Past performance referred to is no guarantee of future performance of the relevant financial product and is not a reliable indicator of future performance. BRICKX products are issued by Theta Asset Management Limited (ABN 37 071 807 684) (AFSL 230920) (Theta).

Project offered by


The BRICKX team is passionate about creating easy and affordable access to the property market for all Australians. With collective backgrounds in technology, p...

Would you like to add this platform to your list?

Please Log In first

Don't have an account yet?

Sign up & enjoy all the services BrickFunding provides