What returns can I expect from a BRXS investment?
The return on your investment consists of:
- Rental income: We pay out the net rental income (i.e. the total rental income minus all operational costs) quarterly. This is proportionally distributed to all investors based on their percentage of brxs notes in a given property. Changes to rental income (e.g. due to favourable market conditions) will be applied automatically to your quarterly payouts.
- Property value appreciation: Since property values generally appreciate over time, the value of your brxs notes can also increase. For example: looking at the housing prices between 1995 and 2020 in Amsterdam (graph below), the residential property prices have increased at an average of 7.1% per year over the entire period including two dips in value in the periods 2002-2004 and 2008-2013. It is important to understand that dips in the housing market can happen and could have a negative impact on your investment with Brxs.
Source: CBS
We cannot guarantee a fixed return as the interest rate offered is variable and dependent on the actual net income of the investment and the actual value of the property at the time of sale. Please keep the following in mind:
- As with all investments, diversify your portfolio over time as it limits your exposure to a single property and your risk.
- Investment returns tend to increase relative to the length of your investment horizon, so we advise to not invest money that you might need in the short term and only invest money that you can afford to loose. Long term investing also help reduce the impact of potential periods of dips in housing prices.
Updated on: 18/01/2022
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