Click here to read through our general MyBrix frequently asked questions before going in more detail about your specific MyBrix product.
Click here if you are a property owner or an investor looking at Equity Funding.
Click here if you are a property owner or an investor looking at release funding.
The General Equity Funding FAQs cover how property owners and investors can engage with MyBrix by selling or purchasing Brix, unlocking equity from existing properties. This section explains the process of equity release, buyback structures, and how investors can participate for potential returns. Whether you’re seeking to access capital or make an informed investment, these FAQs provide crucial insights. For more specific information on Equity Funding or Reverse Mortgage alternatives through Release Funding visit the specific faq section.
1. What is MyBrix?
MyBrix is an innovative platform that enables property owners to raise capital by selling fractional interests (Brix) in their property to investors. It offers funding methods such as Equity and Release Funding.
2. What are Brix?
A Brix is a fractional interest in a property. Each property is divided into 10,000 Brix, representing a proportional share of the future sale and/or rental proceeds.
3. Is data safe with MyBrix?
Yes, MyBrix adheres to ISO 27001 standards for Information Security Management. Investor transactions are recorded on a blockchain for transparency, while personal data remains secure.
3. Do property owners have to pay off their existing mortgage to use MyBrix?
Yes, if MyBrix is being used to refinance or acquire a property, the existing mortgage must be paid off during settlement.
4. Does MyBrix place a mortgage on the property?
Yes, MyBrix places a mortgage on the property to protect investors, ensuring proceeds from the sale or rental are distributed according to Brix ownership.
5. Can property owners sell their property anytime?
Yes, property owners can sell the property anytime, but proceeds will be shared with Brix holders based on their ownership. MyBrix will manage the sale to ensure that investors are paid appropriately.
What happens if a property doesn’t get enough funding from investors?
If a property doesn’t attract enough investment, the funding round can be canceled, and it can be relaunched with adjusted terms.
What happens if the property owner dies?
If the property is jointly owned, the other owner continues with the MyBrix facility. If the owner is the sole owner, the property will be sold, and proceeds distributed to Brix holders.
Can property owners rent out their property?
Yes, but rental proceeds must be distributed to Brix holders. MyBrix facilitates the rental process to ensure proportional distribution.
Can property owners improve their property?
Yes, non-structural improvements don’t need approval, but structural changes require MyBrix’s consent.
Who owns the property?
The property owner remains the legal owner, but Brix holders have a right to future sale and rental proceeds.
The Equity Funding FAQs address how property owners can release equity from their existing property by selling fractional interests (Brix) to investors. This section provides details about the process, including how buybacks are structured and how investors can benefit from capital growth. Whether you’re a property owner seeking to raise funds or an investor looking for opportunities, these FAQs will guide you through the equity funding model. For broader information on how MyBrix operates, refer to the General MyBrix FAQs section for additional insights.
1. What is Equity Funding?
Equity Funding allows property owners to release or refinance equity by selling Brix in their property. It offers a flexible way to raise capital without traditional loans.
2. How much can property owners fund through Equity Funding?
Property owners can fund up to 77.5% of their property’s value.
3. What are Brix discounts in Equity Funding
In Equity Funding, Brix are often sold at a discount to attract investors, reducing the proceeds property owners will receive when the property is sold.
4. What is the maximum term for an Equity Funding facility?
The maximum term is 10 years. At the end of the term, property owners must either refinance, buy back all Brix, or sell the property.
5. What fees does MyBrix charge for Equity Funding?
MyBrix charges 2.5% of the funded amount and holds 250 Brix until the property is sold. Additional listing and settlement fees may apply.
6. What happens if the value of the property decreases?
Any decrease in property value is shared proportionally by all Brix holders. Since there are no loan repayments, holding the property until market conditions improve is often advised.
7. What happens at the end of the term in Equity Funding?
At the end of the term, property owners must either repurchase all Brix or sell the property. Sale proceeds will be distributed to Brix holders based on their ownership.
8. What happens if the Equity Funding application is unsuccessful?
If the property doesn’t attract enough investors, the process will not move forward, and no funds will be disbursed. Initial fees are non-refundable.
1. What is Equity Funding for investors?
Equity Funding allows investors to purchase Brix in properties where owners are releasing equity. Investors often benefit from discounted Brix purchases.
2. What returns can investors expect in Equity Funding?
Returns are generated through capital growth and discounted Brix purchases. Fixed buyback prices may also provide significant gains.
3. Can investors sell Brix before the end of the term?
Yes, investors can sell Brix early through the MyBrix Trading Platform or through structured buybacks. Selling early allows investors to realize returns before the property is sold.
4. How is an investment in Equity Funding secured?
Investments are secured by a first-ranking mortgage on the property. If the property is sold or the owner defaults, investors receive their proportional share of the proceeds.
The Release Funding FAQs provide essential information for property owners and investors on how to unlock home equity through the MyBrix platform. Unlike traditional reverse mortgages, Release Funding allows property owners to sell fractional interests (Brix) in their home without incurring debt, while investors benefit from the property’s appreciation. Whether you’re looking to release equity or make a secure investment, this section covers all the key aspects. For a general overview of MyBrix and its services, refer to the General MyBrix FAQs section for additional details.
1. What is Release Funding?
Release Funding allows property owners to unlock equity by selling Brix to investors, without taking on debt or making interest payments.
2. How is Release Funding different from a reverse mortgage?
Unlike a reverse mortgage, Release Funding doesn’t involve accruing debt. Property owners sell Brix in their property and maintain ownership, but investors gain a right to future sale proceeds.
3. How much of the property’s equity can be released?
Property owners can release up to 90% of the property’s market value.
4. What is the maximum term for Release Funding?
The term is typically up to 10 years. At the end of the term, property owners can either sell the property, refinance, or buy back the Brix.
5. Do property owners need to make monthly payments?
No, there are no monthly payments or interest charges.
6. What fees does MyBrix charge for Release Funding?
The fee is 2.5% of the funded amount and 250 Brix are held during the first IBO. Additional equity releases may involve another 2.5% fee.
7. What happens at the end of the Release Funding term?
At the end of the term, property owners can sell the property or refinance to repay investors. Alternatively, they may extend the term under new agreements.
1. What is Release Funding for investors
Release Funding allows investors to purchase Brix in a property’s future sale proceeds. Investors benefit from property appreciation and eventual sale profits.
2. How do investors earn returns in Release Funding?
Returns are generated through capital growth and the eventual sale of the property. Brix purchased at a discount may provide additional gains.
3. How is the investment secured in Release Funding?
Investments are secured by a first-ranking mortgage on the property, ensuring investors receive their share of the sale proceeds if the property is sold or refinanced.
4. Can investors sell Brix before the property is sold?
Yes, investors can sell Brix on the MyBrix Trading Platform. This provides liquidity and flexibility for managing investments.
5. What happens if the property value decreases?
If the property value decreases, returns will be lower. However, long-term Australian property values have historically increased.
6. What happens at the end of the Release Funding term?
At the end of the term, the property is sold or refinanced, and investors receive their share of the sale proceeds.
IMPORTANT INFORMATION
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.
MyBrix is an innovative solution for property finance that breaks free from outdated traditions. Here are some typically questions. property owners have, see our Frequently Asked Questions (FAQ) page for more details.
MyBrix does not provide any financial 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.
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