Last week, the Brxs investors in the landlust property received their first interest payout, consisting of the property’s net rental income for the first quarter of 2022! A total net rental income of €2.881 was distributed to all investors, corresponding to annualised return of 5.2% on their investment.
Transparency is an important part of our platform so every quarter we share a detailed overview of all the financials for each investment property. We found it a good idea to share such an example on our blog as it provides a good look at how investing with Brxs works and how returns are calculated.
How Brxs works: When you buy a brxs note in a property, it gives you the right to receive a 1) quarterly interest payment consisting of the rental income and 2) the repayment of your investment including the potential appreciation of the property at the end of your investment.
→ With Brxs you are able to easily invest in real estate, benefit from rental income and property appreciation while avoiding all the burdens of being a landlord.
Now, let's dig into how net rental income is calculated and distributed:
The net rental income is the total rental income minus all costs such as maintenance, city taxes, insurance and mortgage payments. The Landlust property has been rented out since the first day (12th January 2022) and here is a detailed overview of all the income and expenses in the first quarter:
So the total net income of €2.881 is what was distributed to all investors and corresponds to an annualised return of 5.2% on their investment.
We are slightly above the estimated rental income with these results and it may be even higher in the future because the maintenance reserves of the property are very strong (€7.173) and no major maintenance is expected in the next few years.
Now what about appreciation?
As an investor in a Brxs property, you will also receive your share of the potential gains made when the property is sold. Regarding the Landlust property, we cannot (yet) put a specific figure on a possible increase in value because we have not had a recent official valuation carried out (we do this at the end of each year and not quarterly).
But we can look at the real estate market developments in the Netherlands:
House prices in the first quarter of 2022 increased 13.7% compared to a year ago, but there is a small decrease of 2.1% compared to the end of last year. Real estate experts from NVM* remain convinced that prices will continue to rise because the demand for owner-occupied houses is still much greater than the supply and ABN Amro** is still forecasting a 12.5% increase for 2022.
→ ABN Amro predicts 12.5% increase in home prices for 2022
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