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You start by registering your interest with MyBrix and after a detailed consultation with our experts, you reach out to your family and friends via social media, email, text as well as word of mouth to let them know about you’re your funding project. They express their interest in participating and indicate how much they can "invest" in your potential property purchase., sort of like “go fund me”, for your property ambitions.
Once you reach your target amount, your family and friends will be invited to create MyBrix accounts and undergo identification check. Once their MyBrix account is created they fund their account and buy Brix (fractional interests) in your future property. At this stage no funds are released to you, all funds are held securely in the accounts of your family and friends until the purchase of your property is complete.
Investors (Family & Friends) receive monthly payments based on how many Brix they agree to sell back each month. The Buy Back Quota the investor agrees to is set each year and they can decide if they want to participate in that year or hold for longer. As the price they get for selling the Brix back to you as the property owner is indexed, that is, the Brix price increases each year.
For example, if the index price in Yr 1 is $100 per Brix, you might decide to buy back 50 each month or 600 over the year. This means you are committing to buying back $5,000 of Brix per month in Yr 1.
As the Brix price is indexed (based on a setting made at the commencement of the funding round by the owner) keeping the payments at $5,000 per month will result in less Brix being purchased each month.
Our calculator below lets you model your specific circumstance and how much you could save using Social Funding (“Bank of Family and Friends”).
Buyback by MyBrix is a revolutionary way for property owners to own their home sooner and save 100’s of thousands when compared to a traditional bank loan.
Buybacks are an essential ingredient in Social Funding (“Bank of Family and Friends”) as they turn the tables in favour of property owners, not the bank.
Property owners decide the monthly commitment they want to make to Buybacks and the amount of return that will be provided to their family and friends, who will be investors in their property.
Importantly Social Funding (“Bank of Family and Friends”) is not a loan, you sell fractional interests (Brix) and buy them back over a defined period.
The big difference between Buybacks and a traditional bank loan is how much of your monthly commitment goes towards increasing the equity you have in your property.
With a traditional bank loan almost 90% of monthly repayments in Yr 1 go towards paying interest, by Yr 5 its 80% interest and by Yr 10 its still a whopping 70% interest.
Conversely, with Buybacks in Yr 1 over 90% of your monthly commitment goes towards increasing your equity, over 70% by Yr 5 and 60% by Yr 10. This means you own your home a lot sooner for a lot less.
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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