Property crowdfunding firm DomaCom and a number of private lenders have partnered to provide the DomaCom Fund with an initial lending line of $100 million.
In a statement, DomaCom chief executive Arthur Naoumidis said the lending facility would allow the company to purchase up to $250 million in property.
“We have been seeking a default lending solution for our platform for three years as it is clear that advisers are seeking to use debt to deliver long-term tax effective returns for their clients,” he said.
“In addition to the recently announced capacity to being able to crowdfund their own debt, advisers can now simply select the debt level they are seeking for a particular property investment and the DomaCom platform will manage the loan application process.”
The statement added that DomaCom is “also progressing discussions” with a number of banks with plans to provide additional lending facilities “that will provide further choice to financial advisers for their clients’ property investments”.
“In an environment where obtaining investment loans is becoming more difficult, we believe a leveraged property investment with a relatively low loan-to-value ratio that is positively geared will be attractive to financial advisers,” Mr Naoumidis said.
When financial failures occur and accountability can’t be pinpointed clearly, often it is the adviser that gets ...
When dealing with high-risk investment portfolios and platforms, it is important advisers manage expectations even when ...
Orbis Investments has added a new marketing head to extend its reach to advised retail investors as part of its “next ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin