DomaCom Fund has dropped its minimum initial investment from $20,000 to $2,500, making it easier for advisers to test the platform.
"We reduced the minimum simply to make it easier for advisers to fulfil an asset allocation for real property among their clients. For advisers too, they can open a small account to test the model and the functionality of the platform for themselves," a spokesperson for DomaCom told ifa.
"At that level students, provided they are 18 years of age or older, can get their foot on the property ladder."
According to the fund's PDS, the DomaCom fund facilitates investment in a fractional interest in a property, being the "underlying property" held by a sub-fund.
Those interested in investing in a sub-fund must first open an account in the cash pool by depositing at least $2,500. The investor may then participate in a book build to indicate their interest in a particular property, the PDS states.
If sufficient interest is generated and if DomaCom is successful in purchasing the property, a sub-fund is created and the investor's funds are transferred from the cash pool to the sub-fund to acquire and hold the underlying property.
The minimum investment into sub-fund units for a single property is $2,000, a DomaCom spokesperson said.
The investment process requires a 14-day cooling off period between making a cash deposit and committing to a property book build.
"During this time, interest is paid based on the ANZ cash rate (of) 0.60 per cent. Currently the rate is 2.6 per cent. With this change to the PDS, a deposit into the cash pool only requires $2,500," DomaCom said.
Any further contributions to the cash pool do not require a 14-day cooling off period, which means investors may deposit more money as soon as a property is identified, DomaCom said
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Sep 2018Peter Kell resigns as deputy chair of ASICBy Eliot Hastie
- 18 Sep 2018Two former Macquarie advisers given 10-year banBy Adrian Flores
- 18 Sep 2018McMaster slams ASIC: ‘They knew about our CPP in 2016’By James Mitchell
- 17 Sep 2018ASIC wants a confession from McMasterBy James Mitchell
- 17 Sep 2018ASIC takes Dover director to courtBy James Mitchell
- 17 Sep 2018ASIC gives permanent ban to unlicensed adviserBy Adrian Flores
- view all