Brix discounting by Property Owners is an important aspect of attracting initial Investors to participate in funding a property and is fundamental to the financial model that attracts Investors to the MyBrix Platform.
Brix discounting is how MyBrix is able to offer Property Owners No Interest and No Repayments for a 10 year period.
When Property Owners are provided with funding via MyBrix they sell Brix to Investors at a discounted price, this discount reduces the amount of equity the Property Owner will have in the sales or rental proceeds of that property. This discount is to provide access to No Interest and No Repayments for up to 10 years.
The discount that is applied means that Property Owners need to sell more Brix in their property than if they were undiscounted. The likely range of equity loss (in the future sales or rental proceeds of that property) through discounting is between 3% and 10% (excluding any MyBrix fees and charges).
The exact amount will be based on the value and use of the property (eg Owner Occupied or Rental) as well as the amount of equity the Property Owners has immediately prior to MyBrix funding. The more equity the Property Owners currently have the less equity, as a percentage of total equity, they will lose.
Use the calculator below to work out the discounts that will be applied to the Brix in your property to attract investors on the MyBrix Platform.
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MyBrix is an innovative solution for property finance that breaks free from outdated traditions, therefore those new to MyBrix typically have questions. In this Blog we provide answers to the Frequently Asked Questions (FAQ) for MyBrix Property Owners.
A property is divided into 10,000 Brix, and each Brix represents a piece of the future sale proceeds and rental proceeds of the property. If your home has a market valuation of $1,000,000, then each Brix would be worth $100. Over time as the market value of the property increases so does the market value of Brix.
The Maximum term you can have a MyBrix facility is 10 years from settlement.
Yes, once your property is fully funded there is no interest charged and no repayments required, regardless of the amount funded, as long as you are over the minimum equity limits of 35% for Owner Occupied Properties and 30% for Rental Properties. We do, however, encourage you to re-acquire Brix from Investors to create more Brix equity in your property throughout the term of your MyBrix facility.
The Maximum you can fund is 65% for Owner Occupied Properties and 70% for Rental Properties using Standard or Silver Brix. In addition, you can fund up to 90% by filling the gap with Gold Brix. Gold Brix are subject to different terms and conditions and have mandatory monthly buybacks over 5 years.
Yes, MyBrix will pay out your existing bank mortgage with your bank as part of the conveyancing process once your property has been fully funded.
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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