The partnership between Bricklet and DDP Property is set to extend the benefits of property fragments to more than 30,000 investors.
Bricklet currently processes $52 million worth of property fragments across Australia, with $15 million of the fragments owned by Australian investors.
With more Australians unable to afford a full mortgage for a desired investment property, Bricklet aims to deliver a service where people are able to afford a fragment of investment. Each fragment is listed on the properties land-title, thereby including all the benefits of owning property.
The property fragment marketplace has created a partnership with DDP Property, an end-to end property investment service specialising in buyer advocacy to the investor. DDP Property’s realised portfolio of property ownership for its clients totals $500 million.
The two companies created an alliance when they saw their similarities in objectives to generate maximum wealth without over-leveraging.
Bricklet Chief Executive Officer Darren Younger said DDP Property Founder Zaki Ameer “immediately” understood the trajectory they were aiming for.
“DDP Property does for its clients what Zaki did for himself. Buying as much property as possible to generate maximum wealth, without over leveraging. Bricklet adds extra little bits of property to any portfolio,” Mr Younger said.
DDP Property’s range of services include property advice, investment strategy planning, mortgage financing, first home owner guidance, new builds, renovations, rental yield management, self managed super fund (SMSF) property and property management.
As a result of the partnership, the DDP Property suite of services now includes the addition of property fragments for bolstering investment portfolios.
“Of course, rising house prices are the key driver in this business,” Mr Ameer said.
“It’s the primary reason why people invest in property. But also, the chief reason why people don’t invest more – because it’s beyond affordable.
“BRICKLET resolves this for many of my clients’ many different scenarios.”
The majority of DDP Property’s clients focus their property investments on total returns from growth and yield.
Buying additional properties could over leverage some customers due to the high price of property. The partnership with BRICKLET enables DDP Property to supplement investors’ portfolios with all the additional property fragments they can afford.
“Instead of getting stuck on the affordability of an entire property in one location, they’re growing and truly diversifying their portfolios in fragments,” Mr Ameer said.
“As many as they can afford.”
One client has entered the property market by buying multiple fragments.
Previously, their savings afforded the minimum deposit, but borrowing for a whole property would have extended their borrowings to more than 90 per cent, incurring additional charges such as mortgage insurance – restricting their cash flow and lifestyle.
Mr Ameer has expanded his own portfolio with the addition of bricklets.
“It affords me more property, without timing the market to continue building my portfolio with whole properties,” he explained.
“If I wait for time in the market to do it’s thing, I have lost that growth period, and the opportunity cost is too much not to continue buying in portions.
“It has also bridged the gap for new clients struggling with affordability, I’m better able to service clients wanting property in their SMSF, along with existing clients gradually increasing their size of their portfolio without the cost of leverage. And the time’s perfect, given how prices are tracking.”
The partnership between DDP Property and Bricklet has also established 40 new members for the companies in their first month.