A shared property equity model between an Aussie start-up Bricklet and major bank AMP

In up and down property market first-time home buyers are still struggling to make a start. Many people are sliding out of the property market because upfront costs are too high. The partnership between AMP Bank with a local start-up, Bricklet introduced the shared equity program.

The Challenge: High Costs, Low Entry Points

With the Australian property market proving increasingly difficult to penetrate, many aspiring homeowners, particularly first-time buyers, find themselves priced out due to prohibitively high upfront costs.

The Solution: Shared Equity, Low Deposit

Under this pioneering model, prospective buyers can now acquire up to 80% of a property’s value with just a 20% investment upfront. This means individuals can enter the property market with as little as $20,000. Crucially, participants in this scheme also pay rent equivalent to 6% of their share, providing a manageable ongoing financial commitment.
Darren Younger, CEO of Bricklet, highlighted the transformative impact of this approach, stating, “Helping people achieve homeownership is always amazing, and this helps people get to the home because of the low deposit.”

How It Works: Shared Returns

When the time comes to sell, the property is assessed, and the proceeds are divided proportionally. Investors recoup their initial share of the property’s value, while homeowners retain the remaining equity. This ensures that both parties benefit from the property’s appreciation over time.

Impact and Future Prospects

The partnership between AMP and Bricklet marks a significant step towards making the great Australian dream of owning a home more accessible. By pioneering a shared liquidity program, they aim to empower a new generation of homeowners and inject dynamism into the property market landscape.
As the initiative gains momentum, it promises to not only provide financial flexibility to buyers but also foster a more inclusive approach to property ownership. This collaborative effort between a major financial institution and an innovative start-up sets a promising precedent for future developments in the industry.

In conclusion, AMP and Bricklet’s shared equity model represents a paradigm shift in property ownership, offering a viable alternative for those looking to enter the market without traditional financial constraints. With aspirations set high and barriers lowered, this initiative stands poised to reshape the Australian property landscape for years to come.

Link: https://www.youtube.com/watch?v=DAdKUPzQNyQ

Disclaimer: Prepared by Bricklet. This information does not take your personal objectives, circumstances or needs into account. Always read the disclosure documents for products and services before deciding on a product or service, and consider seeking independent legal, financial, taxation or other advice for your unique circumstances.

“This offer provides a different option for those who haven’t yet saved a large deposit but are earning enough to meet the ongoing financial commitment of a home loan." 

Sean O'Malley
Group Executive AMP Bank

Express your interest

Speak to a Mortgage Broker