Welcome to the 3rd 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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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 third quarter:
The total net income of €3.267 corresponds to an annualized 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.
This quarter there has been a maintenance job to repair 4 windows (incl. paint) which cost €1.815 and has been paid from the maintenance budget and cash reserves. The cash reserves of the property now stand at €6.318 (cash reserves function as a safety buffer for unexpected maintenance and get distributed to investors at the point of a sale).
The property has been rented out 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.
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 €7.269 (Cash reserves function as a safety buffer for unexpected maintenance and get distributed to investors at the point of a sale).
In August 2022, there was an increase in housing prices of 11.9% compared to one year earlier (Source: CBS). This is lower than the increases observed at the beginning of the year and hence it looks like prices are stabilizing. Rabobank and ABN Amro are still forecasting continued increases for 2022 and 2023.
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?”.
The investment services of BRXS Properties are provided by Brxs Properties B.V, registered with the Dutch Chamber of Commerce in Amsterdam under number KvK Number: 89185188 and has its headquarters at Singel 542, 1017 AZ Amsterdam. BRXS Properties does not fall under the supervision of the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten - AFM). BRXS Properties relies on a Dutch law exemption to the obligation to publish an approved prospectus. This exemption applies when the issuer of the notes offers notes up to a total offer consideration of less than EUR 5 million. BRXS Properties complies with all requirements in relation to the exemption from the prospectus obligation and always strives to operate with full transparency to all of its investors.
Het is belangrijk om voor jezelf te bepalen of de beleggingsopties die op het BRXS Properties platform worden aangeboden bij jou passen. Het is daarom raadzaam om zowel de risico's als de kansen goed af te wegen. Beleggen brengt risico's met zich mee, zoals marktrisico, rendementsrisico, verhandelbaarheidsrisico en leegstandsrisico. De waarde van je belegging kan zowel dalen als stijgen. Je kan een deel of alle beleggingen die je via BRXS Properties doet, verliezen. In het verleden behaalde resultaten zijn geen betrouwbare indicator voor toekomstige prestaties. Brutohuur, rente en potentiële waardevermeerdering kunnen lager zijn dan voorzien.
About the AFM banner
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.