A groundbreaking player is emerging in the world of fractionalized property investing, as Sydney-based fintech start-up, MyBrix, announces the launch of its innovative no-interest, no-repayment property finance platform in September 2023, with initial registrations now open.
MyBrix is set to disrupt the traditional approach to fractionalized property investing by offering property owners across Australia the opportunity to sell a portion of their property, whether owner-occupied or rental, while retaining complete control over their valuable assets.
The concept behind MyBrix was born out of a desire to provide interest-free loans to property owners while simultaneously making property investment more accessible. MyBrix operates on a peer-to-peer funding model, enabling property owners to sell their mortgage debt to investors who can purchase fractional interests in the property for as little as $100, referred to as a “Brix.” Property owners are required to offer a discount on the Brix they sell, with a rate of 15% for owner-occupied properties and 10% for investment properties, creating an immediate profit margin for investors.
Property owners have the option to repurchase Brix if they choose, and the maximum loan term is 10 years. After this period, property owners can seek another loan, potentially through MyBrix, or opt to sell the property, with capital gains distributed among the owner and investors based on their respective shares of the property.
MyBrix boldly declares that it will eliminate the fear of “mortgage cliffs” for property owners and abolish the concept of a “mortgage prison.” The company envisions its platform as the much-needed disruptor in the Australian property landscape. MyBrix also believes that its service can alleviate pressure on rental rates since landlords won’t face ever-increasing mortgage repayments driven by rising interest rates.
Brian Stevens, Founder and CEO of MyBrix, stated, “We are now seeing the effects of the recent aggressive interest rate hikes on families across Australia as well as the economy in general. Using interest rates to regulate economic activity does not consider the people who bear the significant increases in the cost of life’s necessities such as food, power, mortgage payments, and rent.”
Stevens believes that while their platform represents a departure from the conventional approach, the allure of interest-free loans will undoubtedly attract individuals to their innovative model. He remarked, “While charging interest on funding has a long history and its creation can be traced back to ancient civilizations, it is increasingly out of step with how people want to interact with finance and is not how high-cost assets, such as property, will be funded moving forward.”