Invest in real estate on a student budget with bricks.co

How to easily invest in real estate with the bricks.co platform?

Each property is partially financed by a bank loan that must be repaid monthly through rent. Each repayment increases the value of the bricks. The bank’s ownership share decreases, benefiting the investors. Once the loan is repaid, the property will be 100% owned by the investors. For each project, Bricks.co uses its partner bank, Crédit Agricole, to finance 50% of the value. The advantage, of course, is to benefit from the leverage effect of the real estate loan. This boosts the final profitability of the investment.

What is the return offered by the bricks.co investment platform?

At Bricks.co, the expected profitability can vary between 7% and 12% per year, half of which corresponds to the rent paid. The platform uses historical data for its calculations. However, past performance is not a guarantee of future performance. Especially since the real estate market has been generally bullish in recent years. If a real estate crisis occurs, profitability will automatically plummet. Bricks.co has implemented a clever legal model that allows you to resell your stakes in a few clicks on a secondary market. The price is freely set by the seller, who can thus make a capital gain. The price is capped at 13% by Bricks.co to avoid speculation and protect buyers. But also a possible capital loss if demand is lower than supply.

The rental yield should be fair. But the capital gain component is much more uncertain (like any real estate investment). Mechanically, we benefit from the progressive depreciation of the property (predictable over the entire term of the loan). There will be a capital gain (or loss!) depending on market trends. Therefore, after the loan is repaid, the revaluation of the bricks no longer benefits from depreciation. We can then expect a lower profitability.

It will probably be less attractive to buy a property that is more than 15-20 years old on a secondary market. The profitability of a project depends on the rental yield and the revaluation of the bricks. When Bricks.co indicates a target profitability, it is an estimate based on known data. This corresponds to the rents collected, the value of the property at the time of purchase, and the outstanding loan. Data that is not known but can be estimated includes the evolution of the real estate market and the popularity of the brick on the secondary market. Bricks logo – The Smart Investor

There’s so much to say about Bricks that I admit my article isn’t complete and I could still add more, but I think I’ve let enough risk show through to avoid panicking investors. And yet, I’m only sharing here the things I’m thinking about while writing this message. Sorry for the novel, but I’ve spent so much time on the subject that it’s difficult for me to answer all the points you raised in a few lines. ADI: The issue of reselling Bricks (and therefore the liquidity of the investment) could be a concern for savers interested in your services.

My goal isn’t to scare investors away from Bricks, but to help investors understand what’s behind Bricks. Because behind the ease of this investment lies a risky one, with a player unscrupulous about the AMF’s recommendations! Investors are free to invest a little to convince themselves of the model or to move on.

Real Estate: The Investment of Two People

In fact, this is what I’ve personally applied. Still with the goal of diversifying into real estate without any management effort (as I did with my SCPIs), I decided to invest €1,000 in Bricks to start. If you’re planning to invest too, you can take advantage of the referral offer: for the 3 months following registration, Bricks offers 1% of the amount invested by the referral (1% for the referral and 1% for the referrer, so it’s a win-win!). My referral link with the referral code (KEVGRI17) The Bricks platform allows you to invest in fractional rental properties starting from just €10 in a few clicks, and the advertised returns are very attractive: 11.83% average return and up to 15.6% advertised return. It’s also a 100% passive investment: you won’t have all the constraints of direct real estate investment, which can be very time-consuming: property search, purchasing process, tenant management.

How to easily invest in bricks.co on a student budget – the smart investor

This Fintech is based on an original and unique business model. I was attracted by the possibility of investing a small amount in real estate. It also offers good returns, which are usually inaccessible to most individuals. Furthermore, liquidity (i.e., the ability to easily and quickly resell one’s investment), which is usually very low in the real estate world, is very high at Bricks thanks to a clever secondary market system.

We see Bricks.co as one of the best ways to invest in real estate. The concept allows you to buy building shares anywhere in France with just one click. Even better, their marketplace also allows for very rapid resale, as Bricks.co announces liquidity within a week.

Whenever they wish, they can put their bricks up for sale at the desired price and collect their capital gain. The bricks increase in value thanks to changes in real estate market prices. Bank leverage and the monthly repayment of a portion of the mortgage also contribute to this. When Bricks.co indicates a target profitability, it is an estimate based on known data (rents received, the value of the property at the time of purchase, the outstanding loan) and unknown but estimable data (the evolution of the real estate market, the brick’s appeal on the secondary market).

What should we make of the profitability levels above 10% posted by Bricks? In my opinion, these are largely achievable levels for the type of properties Bricks.co is targeting, namely investment properties in medium-sized cities where market demand is low (possibility of purchasing a property at a low price) and rental pressure (easy to rent at an attractive price).

In conclusion

Bricks.co is a new French platform 🇫🇷 that allows you to invest from as little as €10. It will suit all budgets, whether you’re a student looking to get started or an experienced investor. Currently, you can earn 1% cashback for 3 months.

Take advantage of the sign-up bonus

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More information on the offer by clicking here.