Technology Company Lakeba Group has divided two apartments in Adelaide into 40 ‘bricklets’ which investors can buy online for as little as $20,000 – each becoming a part-owner of the unit.
The purchase is made through blockchain technology. So what? Using blockchain, which is essentially a tamper-proof digital ledger, cuts out the need for external authorities to validate transactions. While the full application of blockchain has yet to be realised in property sales – and most other industries – one theory is that it could eventually cut out lengthy settlements and costly conveyancing. Read more from the ABC if this tech stuff is for you.
In terms of the property investment model itself, there are some parallels to other innovations in the Australian market.
‘Fractional property investment’ platforms like BrickX and DomaCom also give buyers the option to invest directly into a portion of their chosen property, without needing to stump up the dollars for a whole property.
With BrickX you can invest from $50, while DomaCom investments start at $2,500, according to their websites.
Unlike investing in a managed property fund, where you don’t get to choose the properties in which the fund invests, fractional property investment allows buyers to choose from specific properties for sale through the platform.
Is it right for you? If you want to invest in property but can’t afford to buy a whole one yourself, it might be worth a look. But these platforms are a relatively new innovation in the Australian property market so do your research and seek independent financial advice.
Committed to the property investor life? Check our listings for rent or talk to us about landlording.
