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 looking to purchase a property or Investor looking at Index funding.
Click here if you are a looking to purchase a property or invest with Social Funding.
Click here if you are interested in Developer Funding.
The General MyBrix FAQs section provides an overview of the MyBrix platform, covering common questions about how Index funding and mybrix works, including details about Brix, the funding process, and property ownership. It offers essential information for property owners and investors, whether you’re new to the platform or considering your funding options. For more specific details regarding Index Funding, Social Funding, or Developer Funding, make sure to check their respective FAQ sections for a deeper understanding of each product.
1. What is MyBrix?
MyBrix is a platform that enables property owners to raise capital by selling fractional interests (Brix) in their property. It provides alternatives to traditional loans through Index Funding, Social Funding, and Developer Funding.
2. What are Brix?
A Brix is a fractional interest in a property. Each property is divided into 10,000 Brix, with each Brix representing a proportional share of the future sale and/or rental proceeds.
3. Does MyBrix place a mortgage on the property?
Yes, MyBrix places a mortgage on the property to protect investors, ensuring proceeds from a sale or rental are distributed according to Brix ownership.
4. Can the property owner sell the property at anytime?
As the owner you can sell at any time, however you will not receive the full sales proceeds, as this will be split proportionally between all Brix holders (including you) based on the Net Sales proceeds. If at the time of the sale you own 25% of the Brix, you will get 25% of the net sales proceeds.
You should also note that MyBrix has exclusive rights to sell the property for you to ensure that the best price is achieved for all Brix holders.
5. What happens if the property doesn’t get enough funding from investors?
If your property doesn’t attract enough investment, the funding round can be canceled. You can relaunch with adjusted terms if needed. No funds are released until the full amount is secured.
7. Is my data safe?
Yes, MyBrix complies with ISO 27001 for Information Security Management, with all transactions recorded on a blockchain to ensure transparency.
8. What happens if the property owner dies?
If the property is jointly owned, the other owner will continue with the MyBrix facility. If you’re the sole owner, the property will be sold, and proceeds distributed according to Brix ownership.
9. Can the property be rented?
Yes, but rental proceeds must be distributed to Brix holders. If the property was funded under Social Funding, it must remain owner-occupied, and additional fees may apply for renting it out.
10. What happens if the value of the property decreases?
Any decrease in value is shared by Brix holders proportionally. However, investors’ Brix purchase prices are fixed and unaffected by market fluctuations.
11. Can the property owner improve the property?
Yes, non-structural improvements can be made without approval, but structural changes require MyBrix approval.
12. Who owns the property?
You remain the legal owner, but Brix holders have a right to the future sale or rental proceeds of the property.
13. Are there any ongoing costs associated with MyBrix for property owners?
There are no ongoing interest or loan repayments, but you must buy back Brix at the agreed index rate, and a $100 monthly administration fee applies for managing the buyback process.
14. Are there any ongoing costs associated with MyBrix for investors?
No. There are no ongoing costs for investors.
14. What is buyback and how does it work?
BuyBack is a concept pioneered by MyBrix, this is where you as the Owner sell your Brix for a price and then buy them back at a defined higher price over a defined term. The buyback process is fully online. At the start of each 12 month period you define how much per month you want to spend to buy back your Brix from your investors. For example $5,000 per month might equal 50 Brix per month or 600 for the 12 month period
The investors then decide how many Brix they want to sell back to you in that same 12 month period, there could decide to say sell 1 per month (12 in total) or 5 per month (60 in total) from their holdings. Once the full 12 month allocation is sold other Brix holders must either wait for the next 12 month period or sell to you in months you want to purchase additional Brix.
Every 12 months the Brix buyback price is set based on the indexation you decide when you setup the buy back scheme. It could be 5%, 7% or 10%, based or the expectations of your investors. Obviously the higher the index, the more you pay and the less Brix you can buy each year.
We suggest 7% is a good starting point as this gives investors a reasonable return and provides you with substantial savings over a traditional bank loan (in terms of time and cost).
15. Does the property owner have full control overshow much I buy back each month?
The property owner can decide on how many brix they buy back however the minimum is based on what they would of paid with a traditional loan and using 80% of that as the lowest amount. So, if with a traditional loan the repayment was $5,000 a month the minimum amount of Brix they buy back needs to be $4,000. The buyback amount can be adjusted every year.
16. Can the Investor buy any number of Brix.
Investors can buy as little or as many Brix in a property that they like as long as they buy in lots of 12. For example an investor can buy 120 Brix or 132 but can’t buy 125 Brix.
The Index Funding FAQs provide detailed insights into how property owners can raise capital by selling fractional interests (Brix) in their property and repurchasing them at a set index rate. This section answers key questions for both property owners and investors about how Index Funding works, the structure of buybacks, and the expected returns. For a broader understanding of the MyBrix platform and funding process, refer back to the general FAQs for additional foundational information.
For Property Owners:
1. What is the maximum term for Index Funding?
The maximum term for Index Funding is 20 years. During this time, you will buy back Brix from investors at an agreed index rate.
2. What is Index Funding?
Index Funding allows property owners to raise capital by selling Brix, with buyback prices increasing each year based on an index rate.
3. What happens if I default on buyback payments?
If you default, MyBrix will step in to manage the sale of your property to ensure that investors are repaid.
4. Who can apply?
Anyone in Australia can apply and any property in Australia that has an individual property title can be purchased with Index Funding.
5. What fees does MyBrix charge?
MyBrix charges a fixed fee of 5% of the funding raised to get you through to owning a property, this includes consultation, assistance in fund raising, providing our platform to undertake the process, assistance to purchase your property and conveyancer fees to settle the property. We then charge a fixed fee of $100 per property per month to facilitate the buyback process.
6. How much deposit do I need?
A minimum 10% deposit is required to secure the property purchase contract. This is paid to the Selling Agent on contract exchange, not to your MyBrix account.
For Investors:
1. What is Index Funding for investors?
Index Funding allows investors to purchase Brix in properties, with the buyback price increasing over time based on a pre-agreed index rate.
2. Can I sell my Brix early in Index Funding?
Yes, you can sell your Brix on the MyBrix Trading Platform (coming in 2025) or through the structured buyback program.
3. What is the typical return in Index Funding?
Returns depend on the index rate set by the property owner and the property’s appreciation over time.
4. Are there any ongoing costs for investors in Index Funding?
No, investors don’t have any ongoing costs. Property owners are responsible for maintenance and other expenses.
5. What happens if the property owner defaults on buyback payments?
MyBrix will manage the property sale, ensuring that investors receive their proportional share.
Social Funding FAQs cover the process of funding a property through friends, family, or close connections. This section answers common questions regarding how property owners can involve their social network in purchasing a home and how investors earn returns through structured buybacks. For those new to the platform, it’s advisable to refer to the general FAQs for more context on how MyBrix operates, alongside the specifics of Social Funding.
For Property Owners:
1. What is the maximum term for Social Funding?
We suggest your facility should go for a maximum of 10 years, but it can go longer depending on the expectations of your investors, this will be discussed with you in your initial consultation with MyBrix.
2. What is Social Funding?
Social Funding enables property owners to raise capital by selling Brix to friends and family, who help fund the property purchase.
3. How are buybacks structured in Social Funding?
Buybacks are structured based on an agreed price with investors, typically friends and family. You repurchase Brix over time, with the price increasing yearly.
4. Do I need a credit check for Social Funding?
No credit checks are required, as Social Funding is based on personal relationships.
5. Can I rent out my property in Social Funding?
The short answer is yes, however a condition of the mortgage is that MyBrix needs to facilitate the rental process and the net rental receipts need to be split proportionally amongst all Brix holders. If you hold 25% of the Brix, you will receive 25% of the net rental receipts
6. How long does the process take
This is up to you and the strength of your social network, if you can secure the funds in a few weeks, the timeframe to purchase a property is approx. 6 weeks, so you need to add this to your funding timeline.
7. How many friends and Family can participate
As many or as few as you need to fund your property, there is no limit, but realistically you should try to keep the number under 100 to make the buy bank process manageable. The minimum investment is $1000, there is no maximum, but having some investors at the high end will make your job of attracting others easier.
8. How much deposit do I need?
A minimum 10% deposit is required to secure the property purchase contract. This is paid to the Selling Agent on contract exchange, not to your MyBrix account.
9. Who can apply?
Anyone in Australia can apply and any property in Australia that has an individual property title can be purchased with Social Funding.
For Investors:
1. What is Social Funding for investors?
Investors, usually family or friends, help fund a property purchase by buying Brix. They earn returns through structured buybacks and potential capital growth.
2. Can I sell my Brix in Social Funding?
Yes, you can sell your Brix back to the property owner or through the MyBrix Trading Platform (once available).
3. What are the risks of investing through Social Funding?
The main risk is the reliance on personal relationships. If the property owner cannot buy back Brix, your investment remains until the property is sold.
The Developer Funding FAQs provide essential information for property developers and investors interested in funding development projects through the MyBrix platform. This section explains how developers can raise capital and how investors benefit from structured buybacks and guaranteed returns. For a broader overview of the MyBrix platform and its general processes, be sure to check the general FAQs for additional details and insights.
For Developers:
1. What is Developer Funding through MyBrix?
Developer Funding allows property developers to raise capital by selling Brix (fractional interests) in their property development projects. This method provides an alternative to traditional bank loans and enables developers to fund projects more flexibly.
2. How much of my project can I fund through MyBrix?
You can fund up to 90% of your project’s value by selling Brix to investors.
3. How do I apply for Developer Funding?
To apply, you need to list your project on the MyBrix platform. A detailed project assessment and independent valuation will be conducted to determine the project’s eligibility and funding potential.
4. What are the advantages of Developer Funding compared to traditional financing?
Developer Funding through MyBrix offers more flexibility than traditional loans, with no interest payments. It allows you to raise capital while maintaining control of your project.
5. How long is the Developer Funding term?
The maximum term for Developer Funding is 3 years. However, you are required to start buying back Brix from investors on a monthly basis throughout the term.
6. What happens if I need more time to complete the project?
If you require more time, you may be able to negotiate an extension with MyBrix and your investors. However, any extension must be agreed upon before the end of the 3-year term.
7. How does the buyback process work for developers?
You are required to repurchase Brix from investors every month. The buyback price is indexed annually, meaning that the price you pay increases over time based on the project’s progress and valuation.
8. What are the fees involved with Developer Funding?
MyBrix charges a 5% upfront fee for Developer Funding. Additionally, there is a $100 monthly administration fee to manage the buyback process.
9. How do I ensure my project is attractive to investors?
Projects with a clear development plan, strong financials, and high growth potential are most attractive to investors. Providing detailed project assessments, expected returns, and risk mitigation strategies will help increase investor confidence.
10. Can I raise funding for multiple projects at once?
Yes, you can list multiple projects on the MyBrix platform. Each project will undergo its own valuation and funding process, allowing you to raise capital for various developments simultaneously.
11. What happens at the end of the Developer Funding term?
At the end of the term, you must have repurchased all outstanding Brix from investors. If you fail to meet this obligation, MyBrix will manage the sale of the project to ensure that investors receive their returns.
12. Can I use Developer Funding for commercial and residential projects?
Yes, Developer Funding through MyBrix is available for both commercial and residential property development projects. Each project is assessed individually to determine its funding potential.
For Investors:
1. What is Developer Funding for investors?
Developer Funding allows you to invest in new property development projects by purchasing Brix (fractional ownership) in those projects. Investors earn returns based on the developer’s monthly buybacks and the final sale or completion of the project.
2. How do I earn returns through Developer Funding?
You earn returns through monthly buybacks by the developer, where the buyback price is indexed annually. At the end of the project’s term, any remaining Brix will be bought back at a guaranteed price, ensuring your return on investment.
3. What is the typical return on investment for Developer Funding?
Returns start at 12.5% per annum, depending on the project. This range is guaranteed at the end of the project term, providing a predictable return on your investment.
4. How long is the investment period for Developer Funding?
The maximum investment term is 3 years. However, developers are required to buy back Brix on a monthly basis, so you may receive returns earlier if you choose to sell your Brix during the term.
5. How is the buyback price determined for investors?
The buyback price is indexed annually, which means it increases each year.
6. What happens at the end of the term if I still hold Brix?
At the end of the project term, any remaining Brix you hold will be bought back by the developer at a guaranteed price. This ensures that you will receive a minimum return on your investment, regardless of market fluctuations.
7. What are the risks associated with Developer Funding?
While Developer Funding offers attractive returns, there are risks associated with property development, such as project delays or cost overruns. However, your investment is secured by the development itself, and developers are required to buy back Brix on a monthly basis to reduce risk exposure.
8. How is my investment protected?
Your investment is secured by the development project. If the developer fails to repurchase Brix or complete the project, MyBrix will step in to manage the sale of the project, ensuring that you receive your returns before any other liabilities are paid.
9. Are there any fees for investors in Developer Funding?
There are no acquisition or holding costs for investors. You only pay a fee if you choose to sell your Brix on the MyBrix Trading Platform. No Brix discounts apply to Developer Funding projects.
10. Can I diversify my investments in different development projects?
Yes, you can invest in multiple development projects through MyBrix. This allows you to spread risk and potentially earn returns from a variety of property developments.
11. What happens if the developer cannot complete the project?
If the developer cannot complete the project or fails to repurchase the Brix, MyBrix will manage the sale of the project to ensure that you receive your proportional share of the proceeds. Your investment is protected by a first-ranking interest in the property.
12. How do I get started with Developer Funding?
To start, create an account on the MyBrix platform, browse development projects, and purchase Brix in the projects that align with your investment goals. You will then start receiving returns through monthly buybacks or at the project’s completion.
13. What happens if I want to sell my Brix early?
You can choose to sell your Brix on the MyBrix Trading Platform or hold it for the full project term. The flexibility of selling or holding every 12 months allows you to manage your investment according to your financial goals.
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.
Copyright © 2024 MyBrix. * Depending on the investment strategy deployed by the investor.
