Are all properties partially financed by a mortgage?

All the investment opportunities listed on our platform are already fully acquired by BRXS Properties and secured for your investment. Some properties are partially financed with a mortgage, while others are not:

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• Mortgaged funded properties: Here a part of the property has been financed by a mortgage obtained by BRXS Properties. The mortgage amount can vary from property to property and is usually between 50% to 70% of the value of the property. All mortgages are interest-only mortgages so there is no repayment of principal. With these properties, investors in the property are benefiting from the mortgage leverage effect on the return.

• Non-mortgage funded properties: Here the entire property is purchased by BRXS Properties and the 100% of the property purchase value is available for investment.

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Several factors go into the decision if we use mortgage financing or not, such as the rental yield and the current interest rate. Example: when interest rates are high, it might not be interesting to finance with a mortgage as there is little to no improvement on the potential return while adding more risk to the investment.

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Our goal is to offer properties both with and without mortgage in order to satisfy a wide range of investor preferences. You can easily see on the details page of each property if there is a mortgage or not. Just check the ‘Mortgage LTV’ in the Key facts section.