Fractional Investment – what is the process?
Investing via a fractional investing campaign is a process that enables a group of property buyers with a common goal to invest in a specific property without committing to purchasing the entire property individually.
You can participate in multiple real estate investing campaigns at the same time. You can join each campaign to the value you wish to invest. Naturally, you cannot commit to investing more than the value funds that you have in your account.
How does investing via a DomaCom campaign work?
Open a DomaCom Fund account
To participate in an investing campaign, you first need to have your DomaCom-accredited financial adviser complete the online application process and open an account (with ANZ Bank) so that you can deposit the amount you wish to invest in the property.
Join an existing public investing campaign OR create a new private investing campaign?
This is for you and your financial adviser to discuss, based on your property needs and whether your financial adviser is able to create a private investing campaign within their client base.
You can join a number of public investing campaigns, recommended to us by qualified property advisers, in case your financial adviser is not able to create a private investing campaign to meet your property needs and wants.
Make a bid on your chosen property!
In order to invest in a Sub-Fund, you must participate in a Campaign by placing a Bid. All Campaigns available through the DomaCom Fund are ‘fixed price campaigns’ which means that the acquisition price of the Underlying Asset is known and fixed.
You can simply bid the amount that you want to invest in based on the known acquisition price. This is how you initiate your participation in a campaign on the property of interest to you.
For more information on how the bidding process works, contact us via email: sales@domacom.com.au
Property due diligence commences (when the investing campaign is 30%-50% filled)
As more and more bids are placed, DomaCom will engage the services of approved parties to undertake a number of reviews and inspections of the property.
Summaries of these reports will become available to all the investors of the property.
Please note that campaign costs incurred by DomaCom with respect to that campaign will be apportioned to investors accordingly.
For more information on the due diligence tasks undertaken, contact us via email: sales@domacom.com.au
The investing campaign is closed and property is acquired
For an investing campaign to close it must attract enough bids at a particular price to match the sales price and associated costs of the property.
The moment this point is reached, the campaign will automatically close. No new bids will be accepted at this stage.
A Supplementary Product Disclosure Statement (SPDS), which provides detailed information about the proposed sub-fund, will be issued and distributed to all Investors with an active bid. On receipt of positive confirmation from all Investors, DomaCom will engage the services of a buyer’s agent to commence the purchase of the property.
Learn more about the DomaCom Fund including how it works, the benefits of fractional property investing and how it compares to other property investment vehicles.
