Welcome to the 3rd Quarter 2022 financial results of the BRXS investment properties! Transparency is an important part of our platform, so every quarter we share a detailed overview of all the financials for each investment property.
When investing in real estate, you can earn in two ways:
Rental income: total rent minus all expenses
Appreciation: the potential increase in value of your property over time
Rental income is easy to calculate by subtracting the expenses (such as mortgage interest, maintenance, etc...) from the rent received. This quarter, rental income was fully in line with expectations and investors received a rental return between 5.2% and 3.7% on their investment, depending on which properties they have in their portfolio. Below is an overview of the details for each property.
The exact appreciation is more difficult to estimate and is ultimately determined by the price at which the property is sold in the future. In the meantime, we follow the evolution through the data of the CBS and once a year an independent appraisal is carried out, which gives us a good interim picture of the value per property.
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The Landlust property has been rented out to 4 residents, long term, for a total monthly rent of €2.650. A complete overview of the income and expenses in the third quarter:
The total net income of €3.267 corresponds to an annualized return of 5.2% on your investment. So if you invested €1.000, spread over the next 12 months, you should receive an interest payout of €52.
This quarter there has been a maintenance job to repair 4 windows (incl. paint) which cost €1.815 and has been paid from the maintenance budget and cash reserves. The cash reserves of the property now stand at €6.318 (cash reserves function as a safety buffer for unexpected maintenance and get distributed to investors at the point of a sale).
The property has been rented out for a total monthly rent of €2.100. A complete overview of the income and expenses:
The total net income of €2.196 corresponds to an annualised return of 3.72% on your investment. So if you invested €1.000, spread over the next 12 months you should receive an interest payout of €37.2.
There have been no maintenance or repairs in this period but the monthly budgeted amount has been added to the cash reserves of the property that now stand at €7.269 (Cash reserves function as a safety buffer for unexpected maintenance and get distributed to investors at the point of a sale).
In August 2022, there was an increase in housing prices of 11.9% compared to one year earlier (Source: CBS). This is lower than the increases observed at the beginning of the year and hence it looks like prices are stabilizing. Rabobank and ABN Amro are still forecasting continued increases for 2022 and 2023.
These statistics provide a good indication but of course, do not provide the actual appreciation of a specific property. At the end of the year (December) we will have an official and independent valuation done for each property by an expert (ie. Taxatierapport).
Also important to keep in mind that the change in property valuation is different from the return you receive on your investment because the properties are partially financed with a mortgage. Hence, the effects of appreciation are magnified. You can read more about this (including a simple example) in our article “Why invest in real estate?”.
The investment services of Brxs are provided by Brxs B.V, registered with the Dutch Chamber of Commerce in Amsterdam under number KvK Number: 84219491 and has its headquarters at Singel 542, 1017 AZ Amsterdam. Brxs does not fall under the supervision of the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten - AFM). BRXS relies on a Dutch law exemption to the obligation to publish an approved prospectus. This exemption applies when the issuer of the notes offers notes up to a total offer consideration of less than EUR 5 million. BRXS complies with all requirements in relation to the exemption from the prospectus obligation and always strives to operate with full transparency to all of its investors.
It is important to determine for yourself whether the investments offered on the Brxs platform suits you. It is therefore advisable to carefully weigh both the risks and opportunities. Investing involves risks, such as market risk, return risk, marketability risk and vacancy risk. The value of your investment can go down as well as up. You can lose part or all of the investments you make through Brxs. Past performance is not a reliable indicator of future performance. Gross rent, interest and capital appreciation may be lower than estimated.
About the AFM banner
Brxs does not fall under the supervision of the AFM as it relies on an exemption from publishing a full prospectus. BRXS complies with all legal requirements, issues a full information document per investment property that is shared with AFM and always operates in full transparency with all of its investors.
BRXS intends to apply for a full AFM license (AIFMD) in 2022 as it extends its activities.