Shartru has completed two crowdfunding campaigns to secure equity and debt to complete the property transaction, DomaCom announced in a statement.
The loan is secured by a first mortgage security on residential property with an LVR of around 60 per cent.
Shartru chief executive Rob Coyte said he was pleased to be finally able to deliver a tax effective investment for growth-oriented clients while also being able to deliver an attractive income investment to retiree clients.
DomaCom chief executive Arthur Naoumidis said advisers can now fund both the equity and the debt portions of a property investment, which enables them to provide the appropriate investment outcomes for both accumulation and retiree clients.
“We are now looking forward to accelerating our funds under management with these new debt facilities, particularly in the SMSF space. SMSFs can have a precise asset allocation to real property via DomaCom, including debt, without the need for a bare trust, limited borrowing and with all the additional administration and cost involved,” said Mr Naoumidis.
Well done to Rob and Arthur.
It appears to me Domacom is starting to get traction, and in my view the concept is brilliant!
I think it’s more the opportunity rather than the deal size. LRBAs in SMSF are complex and more costly in terms of getting advice from accountants, lawyers etc. If the DomaCom platform is a way to get into real property through fractional investing, then perhaps it is an exciting opportunity ahead
No bank involvement at all and there is even an element of capital protection for some equity investors.
$1.6m? That is too funny. What’s that, like a small suburban Sydney home acquisition that occurs in every suburb every single Saturday afternoon? They must have significant client portfolios to absorb that kind of massive investment. Can we have another article when they do another massive deal like this one?
check out their annual report- this is a big deal to them 😀
The details of the deal are actually very interesting including a capital protected exposure to melbourne residential property over 5 years for some investors. Anyway you seem to know heaps about nothing so will leave you to attempting to dragging people down through anonymity…
Domacom is an interesting product in the sense that advisers can structure a deal for their clients, introduce the details of the deal to their clients and not have to worry about some fund manager in the future changing their mind and blowing up their clients.
Reached an all-time low on the ASX today….anyone fancy catching a falling knife!???