How does the BRXS property calculator work?

On each property page, you can find a calculator that allows you to estimate your expected returns based on the investment amount, anticipated holding period and your appreciation assumptions. These calculated return projections are estimates and are not guaranteed. They are based on realistic assumptions for this specific property. Still the actual results in the future can be higher or lower than displayed here.

The variables:

Investment amount: this is the amount you propose to invest in the property. Your investment amount does not impact your return but it does of course impact the return amount expected at the end of your investment.

Holding period: This is the expected length of your investment. This impacts your investment return because a longer investment horizon reduces the impact of the closing costs made when purchasing the property. A longer investment period also reduces your risk because it helps reduce the impact of potential periods of decreases in housing prices. At BRXS we strongly believe in long term investing and advise you to not invest money that you might need in the short term. Therefore we also set 10 years as the default period in the calculation. However we understand the importance of flexibility when it comes to your financial portfolio. You are free, then, to hold your investment for as long as you want. You can read about how to sell your brxs notes.

Appreciation: This is the expected increase or decrease of housing prices in the future. Nobody can predict exactly what will happen in the future. Looking at the housing prices in the Netherlands between 1995 and 2020 in Amsterdam, 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). This said, it is important to note that past performance may not be indicative of future results, and therefore we have opted to select 4% appreciation as our default value in the calculator. You are of course encouraged to play around with calculator to see how a different appreciation might end up impacting your returns.

Other assumptions:

Rental income: If property has already been rented out, the rental income is exactly what has been contractually agreed with renters. In case the property has not yet been rented out, we assume a fair rental income based on market research and recent comparable offerings. You can see the exact status of the property on the top of the property page and under the timeline. Forward looking we have assumed that the rent will increase with an average yearly inflation of 2% as our rental contracts include the ability to increase the rent based on index.

Property costs: All estimated costs related to the property such as maintenance, repairs, home owner association fees (not applicable to all properties), property management fees, insurance, municipal lease (not applicable to all properties), mortgage payments and city taxes. Forward looking we have assumed that these costs will increase with an average yearly inflation of 2%.

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Updated on:
August 31, 2022
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