By Benjamin Mariner | Bricksave
March 31, 2025
News > Blog Article > Key real estate crowdfunding metrics explained
Real estate crowdfunding has become an attractive option for investors looking to generate passive income and diversify their portfolios without the hassle of direct property management. Platforms like Bricksave allow individuals to invest in carefully selected properties and earn returns through rental income and property appreciation. However, to make informed investment decisions, it is crucial to understand the key metrics that define potential returns.
In this guide, we will break down the essential figures you see on the Bricksave website and explain how they contribute to your overall returns.
Experience real estate made easy.
What is it?
The estimated net annual rental yield represents the projected annual rental income generated by a property as a percentage of your investment. This yield is calculated after deducting property management costs, maintenance fees, and other expenses.
How does it work?
With Bricksave, rental income is distributed to investors on a monthly basis, providing a steady and predictable cash flow. The percentage yield displayed on the platform reflects the anticipated annual return from rental income alone.
Factors that influence rental yield
Why it matters
Investors seeking a regular income stream should pay close attention to this metric. A strong rental yield can contribute significantly to the total return, especially when combined with capital appreciation.
What is it?
Estimated annual appreciation refers to the projected increase in a property's value over the investment period. This is calculated based on historical market trends, economic forecasts, and local property performance.
How is it calculated?
Bricksave carefully selects properties in markets with strong growth potential. The appreciation rate displayed on the platform is an estimate of how much the property's value is expected to rise per year. Investors receive their share of this appreciation when the property is sold at the end of the investment term.
Factors that influence appreciation
Why it matters
For investors focused on long-term wealth growth, appreciation is a critical component. While rental yield provides regular income, capital appreciation ensures potential profits upon exit.
What is it?
The total annual targeted return is the sum of rental yield and estimated appreciation, representing the overall projected return on an investment per year.
How to interpret this metric
This figure provides a complete picture of what an investor might earn annually. For example, if a property has:
Then the total annual targeted return would be 8%.
Real vs. targeted returns
While the targeted return provides a useful benchmark, actual returns can vary due to market fluctuations. However, Bricksave conducts thorough due diligence to provide realistic projections.
Why it matters
This metric allows investors to compare different properties and assess the risk vs. reward ratio before making a decision.
What is it?
The funding target refers to the total amount of capital required to fully fund an investment property. Bricksave uses crowdfunding to raise this amount from multiple investors.
How does it work?
Each investment opportunity has a specific funding goal, and investors contribute until the target is met. Once fully funded, the investment period begins, and returns start accumulating.
What to look for
Why it matters
Understanding the funding target helps investors assess the scale of an investment opportunity and its potential risks and rewards.
What is it?
The investment term refers to the duration for which the property will be held before it is sold. Bricksave offers 2 and 4-year investment terms.
How it impacts returns
Why it matters
Investors should align their investment term with their financial goals and liquidity needs. If you require faster returns, properties with shorter holding periods may be more suitable.
Looking for your next real estate investment? Explore our carefully selected properties and start building your global portfolio today.
Analysing real estate crowdfunding returns requires understanding key investment metrics. By considering:
you can make informed decisions and optimise your real estate investments.
Bricksave provides investors with transparent data on each of these metrics, allowing for easy comparison and strategic decision-making. Whether you seek steady income, long-term appreciation, or a balanced mix, these indicators will guide you towards a smart investment choice.
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.
