Welcome to the 2nd Quarter 2022 financial results of the BRXS investment properties! Transparency is an important part of our platform, so every quarter we share a detailed overview of all the financials for each investment property.
When investing in real estate, you can earn in two ways:
Rental income: total rent minus all expenses
Appreciation: the potential increase in value of your property over time
Rental income is easy to calculate by subtracting the expenses (such as mortgage interest, maintenance, etc...) from the rent received. This quarter, rental income was fully in line with expectations and investors received a rental return between 5.2% and 3.7% on their investment, depending on which properties they have in their portfolio. Below is an overview of the details for each property.
The exact appreciation is more difficult to estimate and is ultimately determined by the price at which the property is sold in the future. In the meantime, we follow the evolution through the data of the CBS and once a year an independent appraisal is carried out, which gives us a good interim picture of the value per property.
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Landlust, Amsterdam
The Landlust property in Amsterdam has been rented out to 4 residents, long term, for a total monthly rent of €2.650. A complete overview of the income and expenses in the second quarter:
The total net income of €3.267 corresponds to an annualised return of 5.2% on your investment. So if you invested €1.000, spread over the next 12 months you should receive an interest payout of €52. You can see your exact payout on your Portfolio page and should arrive shortly in your bank account.
There have been no maintenance or repairs in this period but the monthly budgeted amount has been added to the cash reserves of the property that now stand at €7.653 (cash reserves function as a safety buffer for unexpected maintenance and get distributed to investors at the point of a sale).
Buitenveldert, Amsterdam
The property has been rented out since 1st April 2022 for a total monthly rent of €2.100. A complete overview of the income and expenses:
The total net income of €2.196 corresponds to an annualised return of 3.72% on your investment. So if you invested €1.000, spread over the next 12 months you should receive an interest payout of €37.2. You can see your exact payout on your Portfolio page and should arrive shortly in your bank account.
There have been no maintenance or repairs in this period but the monthly budgeted amount has been added to the cash reserves of the property that now stand at €6.849 (Cash reserves function as a safety buffer for unexpected maintenance and get distributed to investors at the point of a sale).
Property Appreciation
Real-estate prices in the Netherlands have continued to go up in the last months with the latest available information indicating an 18.8% increase in May 2022 compared to the prior year (Source: CBS). While prices have continued to increase, the growth has been less steep compared to the beginning of the year, which is not a bad thing: better sustainable growth than overheated growth. ABN Amro and Rabobank are still forecasting continued increases for 2022 and 2023.
Price index Home sales in the Netherlands
These statistics provide a good indication but of course, do not provide the actual appreciation of a specific property. Early next year (2023) we will have an official and independent valuation done for each property by an expert (ie. Taxatierapport).
Also important to keep in mind that the change in property valuation is different from the return you receive on your investment because the properties are partially financed with a mortgage. Hence, the effects of appreciation are magnified. You can read more about this (including a simple example) in our article “Why invest in real estate?”.
Brxs does not fall under the supervision of the AFM as it relies on an exemption from publishing a full prospectus. BRXS complies with all legal requirements, issues a full information document per investment property that is shared with AFM and always operates in full transparency with all of its investors.
BRXS is applying for a full AFM license in 2023 as it extends its activities.
