In March, Australia's first property start-up fragmented a $9 million build-to-rent apartment block in Sydney's Avalon.
The platform, which has received seed-funding from ASX-listed property giants Mirvac and Stockland, allows purchases to buy and sell "bricklets" which provide the owners with independent part-ownership of the property, like shares in a company.
As the world was entering lock down and property markets started to close up, the property fragmentation platform turned purchases of less than $30,000 into independant part-ownership of a $9,000,000 property development.
Futurealty fragmented and marketed the entire seven luxury seniors living apartments located in the exclusive beachside suburb, Avalon Beach, which was fragmented into "bricklets" worth $31,885.
Futurealty used Bricklet, Australia’s exclusive property fragmentation platform, to create a total of 280 fragments in the$9 million development.
Selling each for less than $35,000, with every owner registered on land title, giving each owner complete and independent jurisdiction of their part of the ownership.
“Asking someone to stump up $9 million to fund a development is how it’s worked in the past, making those with money more money,” Futurealty's Ray Jourdan said.
“We're turning that on its head, making money with those who’ve been cut out of property because they couldn’t afford it.
“There are still pundits who claim that $35,000 buys you nothing in Australian real estate, when we’ve sold every fragment for less than that, with everyone owning part of the $9 million property.”
Following the remarkable success in Avalon, Futurealty is now fragmenting a development south of Sydney, in Nowra.
The South Coast property development is also valued at close to $9 million, with each fragment of the entire 21 dwelling development—a mixture of three-bedroom townhouses and two-bedroom villas—only costing $27,779.
Bricklet is handling the fragmentation, given it’s the only one doing property fragmentation on land-title. Ensuring that every part-owner is independently registered on the development’s title at the land registry.
While property fragmentation is still in its infancy, it is growing fast.
Australians are now the only ones in the world who can make hay from part ownership of real estate. Securing complete independence for each owner in every part of jointly-owned properties.
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