What is a 'geared' property?
The term ‘gearing’ refers to obtaining a mortgage to assist with the purchase of a property. If a property has a mortgage, details of the amount of debt, interest rate and terms of the loan can b...
What are the benefits and risks of investing in a geared property?
Gearing a property amplifies the impact of the Brick valuation movements, both up and down. Gearing may therefore increase the potential Capital Returns but also increases the investment risk asso...
How does BrickX manage the debt on a geared property?
Regular interest repayments are deducted and paid from the Gross Rental Income of the property, before the rest of the net rental income is distributed to Brick Owners. BrickX currently holds Inte...
What if the interest rates change?
BrickX may adopt either fixed or variable rates to ensure they are in line with market rates. Property pages located under the ‘Properties’ tab will set out the relevant information of the loan. ...
What is the 'gearing effect'?
The gearing effect describes the 'amplification' of your capital returns, positive or negative, from having a mortgage (debt) on the property. In other words, if the property grows in valu...
