By Andrew Birmingham, Athina Mallis
August 11, 2022
BRICKLET breaks property into smaller pieces to enable people to buy parts of the property, to help everyone become home owners.
Darren Younger, founder and CEO at BRICKLET said the biggest challenge to solve in the market around is the ever-growing prices of property.
“Property is going up in value and wages are not going up the same way. We’ve seen this over decades, which is why BRICKLET came about was to help people with the affordability of property,” he explained.
“BRICKLET is a marketplace for smaller pieces of property, what it does is the platform breaks up the property into smaller pieces and enables people to buy like a $25,000 piece of property as an example.”
Younger said it helps people get onto the property ladder and helps turn them into homeowners with a much smaller deposit.
One of the important characteristics of the model is that the shares of the property, also known as the BRICKLET, are at least as liquid as a traditional property asset.
Younger said, “The owners of a BRICKLET is an owner of the property, so they’re registered on the title. There’s no tokenisation as a digital asset that sits above it. The actual owners are real property owners, the value of the BRICKLET platform is that all the pieces are independent of each other.
“If you own one piece, you can sell it at any time. So you go into the marketplace, you put it up for sale and then if somebody buys that the title is then updated with that new owner.”
BRICKLET also represents one of the most concrete use cases for blockchain, given the need for certainty around provenance. As the platform basically enables an ecosystem, APIs are also important at the technical level.
“It all runs on a on a database, and there is a distributed ledger that sits underneath it. We don’t actively go and talk about the blockchain component of it. However, it is there for the for the ledger of the BRICKLETs,” he explained.
One of the challenges of multiple ownerships is who attends strata meetings and represents the whole property.
“How it’s done is through an asset manager, typically, so the property owners, they assign an asset manager, who then goes and votes on their behalf. All the owners of the BRICKLET can be active in those decisions,” he explained.