Our Managing Director/Co-Founder, Luis Miguel Aleixo (BRIK), explains.
Before I do, and to give context to this article, I’ll briefly share with you my background.
I’m an Australian CPA Accountant and I have worked as a Strategic Accountant/Tax Advisor/Mentor with family businesses involved in Real Estate and the Building/Construction industry for over 25 years (ranging from Property Developers, Builders, Trades, Engineers, etc.). Over the same period, as a family, we have also built and renovated residential Real Estate properties.
Given the experiences working closely in guiding those family businesses and our own family Real Estate projects, following are some of the problems that existed 30 years ago that are the same problems today:
- Vast increase in Real Estate Property prices every year (becoming out of each for the everyday person);
- Harder to service (repay) a mortgage loan given the disproportion between annual income and property purchase cost;
- Traditional Banks not lending because they want the 20% deposit from buyers;
- Banks making it harder to lend (tighter lending policies);
- High Transaction costs to buy (state government taxes);
- Hard to sell a property if you urgently need the funds (illiquid);
- People are classed as too old to borrow money once they reach 50+.
Given the various problems for the everyday person to access Real Estate that I have directly or indirectly observed and/or been directly involved, two years go we decided to do something about it. How can blockchain help resolve the Problems.
As a family we could continue to do the same old same old, as a property investor family in building and renovating residential properties. Continue to put up with the arrogance and clunkiness of the traditional financing system. But in the end have no real meaning, apart from a few dollars and a property portfolio.
We could share with people from all corners of the globe the journey of accessing ideal appreciating Australian Residential Properties as a collective by Tokenising Real Estate. As part of the long-term journey with our BRIKfamily, also learn the Real Estate development and investment game that provides fundamentals that can be applied to Real Estate anywhere in the world.
Two years ago I started researching how could Blockchain help solve the traditional Real Estate problems faced by the every day person. In my research, I discovered that we were not unique in Australia, but people in US, UK, Europe, Asia and other developed continents/countries had similar problems to us. Then I also discovered that Developing countries also had other major problems that were even bigger than ours, like people that never banked before, corruption around records of property ownership and many more.
Given my CPA Accounting background and working with legal structures and restructuring entities over many years, I developed our Real Estate Tokenisation legal structure model to be compliant with all Australian legislations that touches Australian Real Estate Property. After discussions and planning with our services provider, business partner and global leader in Asset Tokenisation on the blockchain, DigiShares, we started the journey by having our BRIKbc Property Tokens Platform built and maintained by them.
Tokenising Real Estate is the process where a Real Estate Property’s ownership is fractionalized:
- The Real Estate Property’s Title Deed is owned by a Special Purpose Vehicle (SPV). In our case in Australia, it is owned by an Australian Private company (Pty Ltd).
- Each Property has a Property Token Series where people buy Property Tokens in each Series.
- Each Property Token is attached to a share in the SPV (Property Tokens have the same rights as the Shares in the SPV).
- Our Property Tokens are recorded on the Ravencoin ($RVN) blockchain (a fork of Bitcoin with Asset Tokenisation points of difference).
As each of our Property Tokens are matched up by ID number against each Share in the SPV when initially issued. Technically our Property Tokens are what we call “Hybrid Property Tokens”:
- Elements of an NFT (each one issued has an unique number)
- Elements of a Stable Coin (never goes down in price as it is backed by the Real Estate Property)
- Exposure to the upside of crypto currencies
Our BRIKbc Property Tokens series are structured as follows with three types of assets owned by the SPV:
- The Core Asset – The Real Estate Property
- Crypto Currency Portfolio – Accumulated and bought from net rent proceeds received each month
- A dozen NFT art pieces (physical print/TV screen displayed in Property)
The value of each Property Token is driven mainly by the increase in the value of the core asset, the Real Estate Property.
The Real Estate Property is held indefinitely, the crypto currency portfolio is held and accumulated indefinitely and the same with the NFT art pieces. Property Tokens holders at any time if they wish can crystallize some/all profits by selling their Property Tokens on the secondary market.
Given the Problems with accessing Traditional Real Estate for the everyday person, we now provide a pathway in the new frontier of Tokenised Real Estate by having a SOLUTION for everyone from all corners of the globe to have access to Australian Real Estate Property.
We welcome everyone from all corners of the world to come on a long-term journey with us as part of our BRIKfamily and enjoy the benefits of our Aussie Real Estate, Aussie culture and build your knowledge in Real Estate development and investment. You only need one BRIK.
For more information on BRIKbc Projects and BRIKbc Property Token Series, see our following links:
- Web: https://www.brikbcprojects.com
- Twitter: https://twitter.com/brikbc
- YouTube: https://youtube.com/channel/UCHCcKAPgyZYvQD02NjqYILg
- Instagram: https://mobile.twitter.com/BrikBC
- TikTok: https://discord.com/invite/xxq6mV7Yhh
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