The busier our lives get, the more important it is to earn an income that requires you to do little work. The term for this is a “Passive Income,” a form of investing that can allow you to earn additional income for minimal effort.
However, the later can be difficult to get into, as it usually requires you to have a great deal of money to begin. Well, that is until now, as there is now a way that you can get your self into the property market within Australia for only $50.
And in a time where Business Insider are reporting expected property growth in the next 12 months, as well as positive clearance rates on properties in both Melbourne and Sydney since the last election, more and more people are starting to look at property once again.
Now, before I let you know how to do this, I just want to point out that this isn’t advice, it’s a review on the cheapest way that I know for someone to get into real estate.
What I’m talking about is BrickX, a company that essentially buys property in mainly Sydney and Melbourne, with the intention of allowing its members to buy “bricks” or in other words, a portion of the house and in-tern a portion of that potential profits of that house.
Yes, that means you get paid a percentage of the capital growth but also a percentage on the rental yield as well. Now, don’t get too excited, as this you need to remember that you’re only buying a small portion of the house, which means the return is also usually small.
For example, a review on BrickX made by ItsNicholas on YouTube told his viewers that the average annual return is about 2%, which isn’t that bad but it’s also about the amount you can earn from an average savings bank account.
Also, when buying and selling BrickX, you’re charged a rate of 0.50% ( formerly 1.75% during the YouTube review ) by the website, which can hurt your overall returns. Yes, if the value of your BrickX were to skyrocket it could still be a profitable return but if they were to barely move in value, the return will likely remain minimal.