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DomaCom gears up for launch of new gearing products

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By mbrownlee
October 10 2017
1 minute read
Launch, DomaCom, gearing products
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Fractional property investment company DomaCom is in the final stages of implementing the legal infrastructure required for the creation of a range of new leveraging products.

DomaCom has announced that it’s in the final stages of implementing the required legal infrastructure for creating a mechanism by which the company’s sub-funds can hold debt.

This will enable the creation of a range of new products aimed at creating growth outcomes by leveraging residential products.

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To facilitate this transition the company has selected Melbourne Securities Corporation Limited (MSC) as the new trustee/responsible entity for the DomaCom Fund.

A meeting of unit holders in the DomaCom Fund will be convened to seek approval for the appointment of MSC. Perpetual, the current RE for the DomaCom Fund will continue to act as custodian.

DomaCom chief executive Arthur Naoumidis said this will be a key driver of future growth given the strong preference from advisers and investors to incorporate debt when investing in property, particularly given the tax efficiencies of doing so.

“The vast majority of property investors use leverage to improve the growth returns from their investment and we expect this development will substantially grow the current portfolio of properties from the current 47 which have been purchased with full equity,” he said.

The decision to move to MSC, a specialist in fintech and experienced trustee for property investment and debt funds, will enable the company to have debt within property sub-funds – something which has not been possible for the past two years.

“DomaCom will be able to offer investors the ability to invest in sub-funds that will lend the capital to the property sub-funds with the investors receiving 5.06 per cent with the security of a first registered mortgage and a low LVR of less than 50 per cent,” said Mr Naoumidis.

Miranda Brownlee

Miranda Brownlee

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on: miranda.brownlee@momentummedia.com.au