July 2017

DomaCom is pleased to announce that we have commenced the following regional public crowdfunding campaigns that may be of interest to your clients.

Akuna, Cobram  VIC

Akuna is developing a portfolio of resort-style residential communities in regional Victoria for the over 55’s, commencing with a ‘greenfield’ site in Cobram on the Murray River.akuna cobram

Through the DomaCom Fund, Akuna is offering investors the opportunity to purchase units in a sub-fund that will acquire ownership of the land component for the development of its Cobram community estate, with the aim to provide investors an attractive return from both the development and the ongoing land-rental agreement.

Investment highlights

Please note that returns are estimates only and cannot be considered as a guarantee of investment performance.

Minimum investment $2,500
The land The Akuna site comprises of 8.2 hectares, with an approved development plan issued by the Shire of Moira for 148 home sites and community facilities including clubhouse, sports centre, pool and bowling green
Target crowdfunding raise AU$6 million:

  • $1.65 million for the land component (including GST and Stamp duty)
  • $4.35 million for development planning, approvals & construction
Estimated return on investment Building Phase: During this time it is expected that investors in the Akuna sub-fund of the DomaCom Fund may not receive any income distributions, and the return will be primarily by way of expected increases in the unit price of the investment holdings.  Unit prices will be reviewed regularly through the building phase by periodic re-valuation.

Completion Phase: Upon completion and full occupancy, the investors in the Akuna sub-fund of the DomaCom Fund will receive a monthly net rental return. It is estimated that after all expenses the rental income will equate to approximately 8% p.a. on the completed capital value.

Investment term There are no withdrawal rights from a sub-fund until it is terminated, however the DomaCom Fund provides a liquidity solution. This solution has not previously been available to the property sector.

  • You can sell some or all of your units in a sub-fund through the DomaCom Fund’s liquidity facility provided there is a buyer for your units; or
  • The Fund’s Constitution also provides that a sub-fund can be terminated at any time by a vote of unit holders that hold at least 75% of all units on issue and/or after 5 years with a 50% unit holder vote.

Please refer to the DomaCom Fund Product Disclosure Statement (PDS) for more information.

Affordable retirement accommodation via Residential Land-Lease Community (RLLC) living separates the ownership of the land from ownership of the house, freeing up capital for the homeowner whilst providing the land owner with secure ongoing rental income from the land.

IMPORTANT to note is that RLLC projects do not come under the Retirement Villages Act and therefore housing properties sold in this project will not be subject to the fees recently outlined in several media reports. Akuna will have no entry or exit fees for residents.

Lifestyle community living is driven strongly by an ageing population prepared to downsize and relocate to achieve an affordable lifestyle. Akuna will develop and lease the land, construct and sell houses and manage the community.

If you are interested in this project as an investment for your clients, please visit the Akuna page on our website.

 

Utilitas bioHub

The second opportunity that may be of interest to your clients is the Utilitas bioHub project in Casino, NSW turning organic waste into fuel to generate electricity.

This is a great example of technology that works to benefit rural communities. With a population of over 10,000 people, Casino is the regional hub of a large cattle industry. The sheer size of biomass from agricultural and food processing industries in this region makes it an ideal place to build a bioHub.

Utilitas will engineer the plant following a successful acquisition of the site. Backed by multi-year energy purchase contracts with local industry, Utilitas will also be the operating tenant of the bioHub once completed.

Investment highlights

Please note that returns below are estimates only and cannot be considered as a guarantee of investment performance.

Minimum investment $2,500
The investment DomaCom, via the DomaCom Fund, and Utilitas, a bioHub developer, is launching Australia’s first crowdfunding campaign to acquire a site in Casino, northern NSW and develop a bioHub to service the energy needs of its nearby industries and communities.

The bioHub will be leased to the operating business run by Utilitas, and an ongoing income stream, via leasing fee, will be paid to the investors in the DomaCom Casino bioHub sub-fund.  Investors in this sub-fund are holding an interest in the land and the plant, and are not investing in the operating business

Target crowdfunding raise AU$4.3 million
Estimated return on investment Targeting a 20% uplift for the project during the 12-18 month development with ongoing gross rent of 8% p.a. with an annual increase of the greater of CPI or 3%.
Investment term There are no withdrawal rights from a sub-fund until it is terminated, however the DomaCom Fund provides a liquidity solution. This solution has not previously been available to the property sector.

  • You can sell some or all of your units in a sub-fund through the DomaCom Fund’s liquidity facility provided there is a buyer for your units; or
  • The Fund’s Constitution also provides that a sub-fund can be terminated at any time by a vote of unit holders that hold at least 75% of all units on issue and/or after 5 years with a 50% unit holder vote.

Please refer to the DomaCom Fund Product Disclosure Statement (PDS) for more information.

If you are interested in this project as an investment for your clients, please visit Utilitas Biohub page on our website for more information. 

 

The Feddy in Deni

A businessman with property and agricultural interests in the New South Wales (NSW) Riverina and northern Victoria purchased the Federal Hotel, Deniliquin in late 2015 (known as ‘the Feddy’ to many locals) following an 8-year closure.

Together with a media and entertainment company, Omecca, a plan has been prepared to renovate the property to become a focal part of Deniliquin offering food and beverage services, luxurious cinema seats, and bed & breakfast style accommodation.

The cost to acquire the Feddy, refurbish and reopen it as an entertainment complex is expected to be approximately $1.5 million. DomaCom has already secured 27% funding at this stage, hence, the target amount to raise is $1.1 million. It is targeted that on completion of the refurbishment that the improved value of the Feddy and entertainment complex will provide investors in the DomaCom Fund sub-fund with capital growth in the vicinity of 15-20%, and an estimated ongoing net rental income of 7% p.a.

The DomaCom crowdfunding model can be employed in regional areas to refurbish disused properties such as the Feddy to enhance amenities in the community, add to the town’s business and commerce, employment opportunities, and encourage population growth.

If this project is of interest to your clients, please visit the Feddy page on our website for more information.

 

Investors access DomaCom via Hub24

DomaCom continues to expand our presence on platforms with our first transactions on HUB24 in early July. The addition of HUB24 is further validation that our fractional investment model is gaining wider acceptance and a place in portfolio construction that can fit into any investment structure. It also demonstrates the flexibility that platform and non-platform investors can invest in the same asset. DomaCom look forward to further platform integration announcements.

 

Diversifying through multi-property portfolios

Engaging with property model managers, DomaCom can offer your clients exposure to a range of multi-property portfolios based on investment strategies such as income, capital growth or a combination of both. These can include residential and commercial properties.

The following are examples of multi-property portfolios in the DomaCom platform that have been set up by two separate advisory groups.

Example of 2-property portfolio currently in the DomaCom platform

Total investment amount: $1,000,000

Investment objective: An advisory firm with a group of early retiree investors wanted to create a portfolio of properties to achieve a steady income stream greater than the bank’s term deposit rates, coupled with a growth component.
The adviser in conjunction with property specialists searched for growth areas in VIC, NSW and QLD where tenants would be easy to find.

Properties & locations: They settled on the following two properties in two very different geographic areas:

Coomera house, QLD Richmond apartment

  1. 1-bed, 1-bath, apartment in a cosmopolitan Melbourne-inner-city suburb of Richmond, VIC; and
  2. 4-bed, 2-bath, 2-car house in a growth suburb of Coomera in the Gold Coast region, QLD.

Example of 4-property portfolio currently in the DomaCom platform

Total investment amount: $1,350,000

Investment objective: An advisory firm wanted to provide a diversified property exposure for their clients who were previously unable to allocate funds to direct property within a prudent asset allocation in their portfolios.

In conjunction with property specialists, the adviser identified 4 properties in outer suburbs of metropolitan areas in QLD, VIC, TAS and SA with reasonable growth and good rental that met their criteria.

Raceview house, QLD

  1. 3-bed, 2-bath, 2-car house in regional town of Warragul, VIC;
  2. 3-bed, 2-bath, 1-car house in Munno Para West, an outer northern suburb of Adelaide, SA;
  3. 3-bed, 2-bath, 1-car house in Risdon Vale, an outer northern suburb of Hobart, TAS; and
  4. 2-bed, 2-bath, 1-car house in Raceview, a suburb of Ipswich in QLD.

In ‘grouping’ properties together your clients can allocate their funds in a single campaign and the platform will split their funds equally across the portfolio of properties, which may be 2, 3 or more properties depending on the type of property and price.

The benefit of investing in this way is that all your clients’ eggs are not in one basket, so they may see some areas performing better than others and they will have multiple tenants across the portfolio, hence, minimizing tenancy risk as they will not all be vacant at any one time.

It’s also interesting to note that close to 40% of investor accounts in the DomaCom platform are Self-Managed Super Funds (SMSFs), indicating that the DomaCom fractional model is an ideal vehicle to provide an asset allocation to real property without over-weighting the portfolio.

 

DomaCom seeks Federal Court determination

We recently announced that DomaCom Australia Limited has supported an action in the Federal Court for a declaration that the DomaCom Fund sub-funds are not inhouse assets or related trusts for the purposes of the SIS (Superannuation Industry Supervision) Act.

Such a ruling would confirm that SMSFs can invest in property sub-funds where the tenant of the underlying property is a related party of the SMSF.

The ability to use superannuation to help people into a home is clearly a topical issue in Australia, and it is our belief that the DomaCom Fund can play a key role in solving this issue whilst still protecting the assets of the SMSF.

The unique arm’s length structure of the DomaCom Fund protects the SMSF assets whilst generating commercial rates of income and capital return that the underlying residential property delivers.

Residential property can be used as an anchor asset class for the superannuation portfolios of Gen X/Y investors, which can then expand to other asset classes later in life.

Stay tuned for progress and outcome of this Federal Court determination.

 

DomaCom brings administration in house

Following the initial start-up period, DomaCom has decided to bring funds administration services previously performed by FundBPO Pty. Ltd. (ABN 81 118 902 891 AFSL 303253) in house effective 1 July 2017.  We thank FundBPO for their services and support to date.

 

2017 DomaCom Tax Statements

We have commenced preparations for the end of 2017 financial year in order to issue your clients with Tax Statements for each sub-fund by the end of September 2017.

Please let your clients know that they will receive a notification email closer to this date that will ask them to log in to the DomaCom platform to download their Tax Statements.  In the meantime, if you have any questions about our statements, please contact our Client Service team via email, clientservices@domacom.com.au

In the media

Here are some of our latest media coverages, but for the full list, please visit In the Media section of our website.

 

General Advice Warning

This information is general advice only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Accordingly, before acting on the information provided you must consider the appropriateness of the information, in the light of your own objectives, financial situation or needs. If you wish to acquire a financial product within the DomaCom Fund offering, you should first obtain a copy of, read and consider, the PDS before making any decision. A copy of that PDS is available at https://www.domacom.com.au/the-domacom-fund/product-disclosure-statement/ or by calling your financial adviser.

Disclaimer

The material in this newsletter has been prepared by DomaCom Australia Ltd ACN 153 951 770 the holder of an Australian Financial Services Licence No. 444365. The information given is in summary form and DomaCom does not warrant the accuracy, currency or completeness of any information contained in the presentation. Forward looking statements may be contained in this newsletter, including but not limited to statements regarding DomaCom’s belief or expectations in respect of its business, market conditions, results of financial operations and risk strategies. DomaCom has taken due care in preparing this information, however actual results, performance or events to differ materially from those expressed or implied. DomaCom undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this presentation, subject to disclosure requirements applicable to DomaCom. Past performance is not a reliable indication of future performance. Any potential investors or investors are warned not to place reliance on such statements but to proceed to make an investment decision based on their own independent research and independent advice. The material in this document, is general information only and is not intended and should not be considered as constituting advice, a recommendation or an offer or solicitation to investors, or potential investors, in relation to purchasing or acquiring any securities or other financial products and does not take into account your personal investment objectives, financial situation or needs. If you are considering making an investment and before acting upon any information in this newsletter, you should read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au, or by phoning 1300 365 930 and you should consider the suitability of this investment, having regard to your personal investment objectives, financial situation or needs. You should also seek independent financial advice.

 

April 2017

DomaCom finalises first crowdfunded farm

We’re pleased to advise you that DomaCom has recently reached settlement on what we believe to be Australia’s first crowdfunded farm.

“Doyles” is a beef cattle property in Victoria’s Western District which sits in a sub-fund of the DomaCom Fund for its 92 investors.

Doyles/Western District Cattle Property

We expect the sub-fund to generate a 9% – 10% gross combined return for these investors consisting of:

  • 4% gross rental yield (a tenancy agreement has been signed), and
  • Approx. 5% to 6% capital growth (as detailed in the Rural Bank Report on median Farmland Values in Australia*).

We are now on the lookout for other suitable rural properties to acquire.

If you have clients that are interested in helping keep rural properties in Australian hands, or would like to benefit from the diversification that rural property offers, they may want to consider joining our next crowdfunded farm.

Please visit our Rural Property Strategy page for more information.

*Rural Bank – Australian Farmland Values 2015

DomaCom completes first transaction with managedaccounts.com.au

In another exciting development for DomaCom, we recently completed our first fractional property transaction through managed accounts provider, managedaccounts.com.au .

This transaction was carried out for one of our AFSLs, a Sydney-based advisory group, Benwest Investment Services.

DomaCom’s CEO, Arthur Naoumidis, said this had proved that the fractional property model worked in a managed account structure. “As a result, we will be able to introduce managedaccounts.com.au to the 42 AFSLs who have put the DomaCom Fund on their APL and to a similar number who have DomaCom on their radar to use,” he said.

“Nowhere else can investors access bits of residential, rural or commercial property of their choice either in a managed account or on a traditional platform, and advisers have the front running to introduce this to their business process.”

According to managedaccounts.com.au chief executive, David Heather, the transaction also proved that there was an increased demand from advisory firms, particularly those working with the self-managed super funds (SMSFs), to include direct property exposure into the company’s offering.

“Until the DomaCom model, direct property was something that had to be implemented external to the managed account solution and as a whole asset purchase which invariably involved debt,” he said.

“The combination of DomaCom and managedaccounts.com.au enables the paperless acquisition of direct property, no different to any other asset in a managed account.”

If you would like more information on to transact in the DomaCom Fund via  managedaccounts.com.au, please contact your local Business Development Manager or email sales@domacom.com.au

SMA manager, DFS Portfolio Solutions, adds DomaCom Fund to its platform

We’re also excited to report that DFS Portfolio Solutions, a specialist asset allocator and separately managed accounts (SMA) model manager, has also signed a Heads of Agreement with us which would see the DomaCom Fund being added to its platform.

According to DFS Portfolio Solutions (DFS), it is expecting to initially allocate around $25 million to the DomaCom Fund, with possible further allocations to take place later in the year.

DFS would also use direct property as an additional diversifying asset class across its model portfolios and further use the DomaCom Fund to deliver direct property investments.

DFS principal and head of research, Stephen Romic, said that the company would initially seek commercial, industrial and retail property to deliver a higher yielding asset class and that it was already looking for suitable property advisers to source appropriate real assets for the offering.

DFS is an Australian model manager for IMA/SMA platforms and delivers its models to DFS Advisory Services as well as external boutique advisory firms.

Commenting on this recent deal, Arthur Naoumidis, said: “This is another first for our group and demonstrates that direct property can be included in an investment portfolio as part of an overall asset allocation strategy by investment model managers”.

“Including property within an asset allocation model is a core element of the DomaCom business model that we see as being a major driver to the growth in the funds under management (FUM) of the DomaCom Fund.”

DomaCom gets greenlight to crowdfund Corporate Bonds

It has been a very busy first few months for the DomaCom team. In the product development space, we’re excited with ASIC’s latest approval for us to extend our crowdfunding model to securities, which means we can now offer fractional investment in Corporate Bonds as well as a peer-to-peer sub-fund lending facility.

“The varied AFS licence will allow us to offer peer-to-peer lending sub-funds and a fractional investment model for corporate bonds, with work well under way to issue a new Product Disclosure Statement to support these new products,” Arthur Naoumidis said.

“Lending sub-funds will be the first product we are planning to launch and will allow for investment loans in the DomaCom property portfolio. “They will offer a yield of 5.06% to lenders with the security of a first registered mortgage and a loan-to value ratio (LVR) of no more than 50%.”

“We have many property bookbuilds that have been waiting for a debt solution, and we expect the launch of our lending facility to accelerate these bookbuilds.”

Stay tuned for more information on the lending facility the near future.

2017 Fintech Business Awards

Fintech AwardThe premier awards night for the fintech industry, the Fintech Business Awards, is dedicated to celebrating the accomplishments of the disruptive businesses and innovators reshaping the way Australians access financial services.

Over 300 nominations were received for the 18 awards, with the winners selected by a panel of expert judges from a pool of 125 finalists.

We’re very pleased to report DomaCom won the category of “Crowdfunding Innovator of the Year”. And we congratulate all our fellow winners in their category for their efforts in bringing innovative solutions to the industry.

Prodigy Network – New York City, USA

DomaCom recently began working with Prodigy Network (Prodigy), the largest crowdfunder in the USA, to introduce investors seeking a more global allocation to property.

Prodigy specialises in acquiring and developing high quality property for the short-stay/co-working market in lower Manhattan, New York City, USA.

An exciting opportunity has emerged for sophisticated Australian investors to invest in a slice of prime commercial real estate in Manhattan and benefit from developer-type returns. If you have clients that may be interested, please our The Assemblage, Park Avenue South, NYC  page under Public Crowdfunding Campaigns > International Investments section of our website.

Upcoming events

DomaCom recently attended the Melbourne Property Buyers Expo, an event for retail investors. The response was very encouraging for DomaCom and demonstrated the still strong interest in property investment.

DomaCom also presented the fractional model to AIST Member Funds at the recent AIST’s 2017 CMSF Conference in the Gold Coast.  Many great conversations took place during this conference and we look forward to continuing our discussions with a number of interested parties within the industry funds network.

And finally, DomaCom is currently attending the 2017 AIOFP Off-Shore Conference to present our new equity crowdfunding opportunities.  We hope to see some of you there.

AFSLs can also avail themselves of presentations to advisers and clients on the subject of fractional investment by contacting Warren Gibson, Head of Sales and Marketing on 0412 171 606 or email warren.gibson@domacom.com.au

In the media

Here are some of our latest media coverages, but for the full list, please visit In the Media section of our website.

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au or by phoning 1300 365 930.

December 2016

edm-header-xmas-1

Seasons Greetings

It is hard to believe that 2016 is coming to an end. The DomaCom Team would like to take this opportunity to thank you for your support, and wish you a wonderful festive season and a prosperous new year.

Lonsec gives DomaCom Fund the green light

DomaCom is excited to announce that Lonsec has reviewed and rated the DomaCom Fund.Lonsec

Commenting on this long-awaited approval, DomaCom CEO, Arthur Naoumidis, said, “Whilst we have several reviews and ratings from other agencies which have led 41 AFSLs to place our Fund on their approved product list, the reality is a rating from Lonsec will have a greater impact, increasing the number of dealer groups, exposing the Fund to their advisers and giving them more confidence to bring fractional property under their advice”.

“Every dealer group relies to some degree on Lonsec, so this rating opens up the market to every adviser in Australia” he said.

For a copy of the Lonsec research report, please visit the Research Report page of our website and complete the Adviser contact details form.  Please note that this publication is not to be circulated or distributed and is solely for the information of financial services professionals.

*Disclaimer: The Lonsec Rating (assigned November 2016) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold DomaCom Australia Ltd product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings

SuperConcepts adds the DomaCom Fund to iSaver

SuperConcepts has added the DomaCom Fund to its low-cost fund administration service, iSaver, for SMSFs holding simple assets.

The collaboration with SuperConcepts will provide SMSF trustees and advisers with an easier way to access property investments through DomaCom’s fractional investment model, which breaks down the high cost of property to achieve specific asset allocation in the sector.

This new development follows a recent analysis of SMSF investment trends by SuperConcepts which showed that using SMSFs to buy property continues to be a popular strategy.

iSaver offers a low-cost fund administration service for SMSFs holding simple assets such as cash, term deposits and domestic shares.  iSaver will add DomaCom property investments to this list at no additional cost.

For more information on this latest development, please email sales@domacom.com.au

DomaCom has successfully listed on the ASX

Following a 5-year development and launch phase which saw the company acquire 32 properties for investors and initiate another 49 bookbuilds*, DomaCom has taken the next major step on its corporate journey with a listing on the Australian Securities Exchange (DCL:ASX) on 7th November 2016.

Despite the tougher ASX listing environment, political and economic volatilities around the world, DomaCom’s outlook is promising and the company will focus on its underlying business and drive funds under management to new heights.

*As at 8 December 2016

Kidman Station update

Given the media attention recently about confirmed bids to purchase the Kidman & Co pastoral holdings, we believe it is a good time to update you on the status of our Kidman Station crowdfunding campaign.

Our Kidman campaign has been remarkable – we received around $80 million worth of pledges from 5,500 investors of which nearly 600 had opened accounts with the DomaCom Fund.

Given the confirmed bids exceed the value that we could achieve, we have decided to wind up our Kidman campaign and divert our attention to a much more attainable rural opportunity that we believe will have significant structural benefits to Australian farmers – i.e. keeping the families on the land without the interference from banks or being sold to overseas interests.

A lot of work went on behind the scenes to keep our Kidman Station bid alive for over 10 months, and we are proud of our efforts. The Kidman campaign was always a very ambitious exercise and we believe the real opportunity is for us to use this momentum to address the funding issue for our Australian farmers at a more grass roots level – one farm at a time.

Rural strategy bookbuild

rural_resized_3Recently we promoted a new crowdfunding campaign for Pajingo Cattle Station located near Charters Towers, far north Queensland, as an alternative investment to the Kidman Station properties.  Unfortunately, the vendors have decided not to proceed with that proposed transaction.

As a result, we have decided that a better strategy is to secure investor funds first then identify a suitable property instead of the other way round. In this way we avoid further disappointment and know how much we have to invest. It may be that we have sufficient for 2 or 3 properties which would further diversify your client’s investment.

We are calling this a Rural Property Strategy bookbuild and if you are happy with this approach, you can pledge some of your clients’ funds to this bookbuild and we will let you know when and which property/ies we identify when the time comes. Once properties have been identified your clients will receive a Supplementary Product Disclosure Statement outlining the specific offer to invest in specific properties which will contain all information required for you to make a decision.

Rural property is well regarded by Australians looking for a socially responsible investment with a reasonable return by way of income and capital appreciation.  Investors taking the Rural Property Strategy approach could benefit from the stronger buying power that comes with a cash purchase. It is therefore important to participate in the bookbuild ahead of the property selection so we can be confident of an acquisition when a property comes to market. We will also be in a better position to acquire off-market.

For as little as $2,500 per property, your clients’ funds in the DomaCom Cash account can be applied to the purchase of multiple properties within a Rural Property Strategy.

Key features of the Rural Property Strategy

  • 2 to 3 rural properties, predominantly grazing properties but some may also have farming or cropping capacities;
  • target return of 8.5% p.a., comprising of approximately 5% from capital growth and approximately 3.5% to 4.0% from rental return; and
  • commonly leased back to the vendor/s who may have had the property for generations.

If you would like your clients to participate in our Rural Property Strategy bookbuild, visit the Rural Property Strategy page on our website and click on the Apply button.

For more information on this strategy, email sales@domacom.com.au

Buy The Block update

DomaCom took crowdfunding into reality television as part of a campaign to help viewers own a slice of one or more of Channel Nine’s The Block apartments when they went to auction in mid-November 2016.

Whilst we attended the event with our buyer’s agent, we did not win a bid. Stay tuned for more news on The Block via our Facebook and LinkedIn social media pages as we look forward to 2017 season and to previous Block properties that will be coming to market shortly.

These properties are generally well ahead of the median price/rent for their area and, being fully furnished, come with high depreciation schedules. When they resell they more often than not sell for a premium to their original auction price. In all, they perform quite well.

Upcoming events

SMSF Association 2017 National Conference

We’re a proud sponsor the upcoming SMSF Association 2017 National Conference that will take place in Melbourne on 15th to 17th February 2017.

There are sessions tailored to all industries and occupations relevant to the SMSF industry including financial planners, accountants, auditors, lawyers and administrators. Day 2 has been designed to be ‘all about your business’, and the entire conference is jam-packed full of technical content to assist you in providing the most up-to-date SMSF advice.

We look forward to seeing some of you there.  For more information on this conference, visit https://www.smsfassociation.com/conference/

 

In the media

Here are some of our latest media coverages, but for the full list, please visit In the Media section of our website.

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.

September 2016

Buy the Block

buytheblock-bar

Channel Nine’s long-running renovation reality series The Block launched on August 22 with the usual fanfare.  DomaCom has added to the excitement with our www.buytheblock.com.au website.  DomaCom is taking crowdfunding into reality television in a campaign aimed to help viewers own a slice of one or more of The Block apartments when they go to auction in November 2016.

how-does-it-work-video-thumbAs a leader in the emerging field of crowdfunding property, DomaCom can help investors get their foot on the property ladder and build a diversified portfolio of property assets including Buy The Block.

Via the DomaCom Fund, investors can own a part of The Block apartment of their choice, and receive a proportional share of the rental returns and any capital growth going forward.

Investors can also sell their portion of ownership any time they like through DomaCom’s liquidity facility, provided there is a buyer.

A new-edge lending solution in ThinCats

ThinCats operates a peer-to-peer lending platform linking borrowers to investors. ThinCats has recently entered into an agreement with DomaCom facilitating the DomaCom Fund’s access to ThinCats’ its 350 lenders as a funding solution for DomaCom Fund investors wishing to gear a fractional property investment.  In return, lenders receive a rate of 4.75% p.a., which is quite attractive in the current low interest rate environment.

For DomaCom property sub-funds borrowing money, the rate is 3.5% above the ANZ overnight cash rate which currently puts it at 5.25% p.a. The cost of the facility is 0.5% of the loan amount, and loans must be positively geared with an LVR not exceeding 50%.

The arrangement with ThinCats is an innovative approach offering new options for investors looking to benefit from gains associated with property ownership, whilst earning an attractive fixed income return at the same time.

For example, an SMSF could lend cash to ThinCats borrowers for a 4.75% return and borrow money to make a fractional property investment, with the 5.25% rate being tax deductible within the SMSF.

What are the alternatives when it comes to investing in the current volatile market?

We live in pretty volatile world in more respects than one, so how are you allocating client investment funds in the current climate?

With record low interest rates, volatile currency exchange rates and equities markets, the much vaunted strategy of diversification has to be a key consideration.

Whilst the low cash return environment has a potentially negative real return when you take tax and inflation into account, investors always need some sort of short term liquidity, particularly retirees.

Government bonds are close to an all-time low and fixed interest rates are unlikely to provide sufficient income to outpace inflation, again making this option particularly difficult for retirees.

Apart from individual sector issues, the equities market could present potential earnings issues going forward, and Australia’s AAA rating may be under threat as we continue to borrow money for consumption instead of investment, particularly in agriculture which could potentially be our biggest export industry.

What about property? There is plenty of opportunity in property but for most it is an expensive all or nothing proposition unless you opt for a partial investment via an unlisted or a listed property trust. However, if it is residential property you seek, then property trusts are not the answer.

This is where the DomaCom Fund offers a solution. With DomaCom you choose the property you want, list it on the platform and start a bookbuild from your client list to acquire it. The minimum investment is $2,500. Using the DomaCom platform, provided you have enough clients or funds to invest, you can select multiple properties to give your clients a diversified portfolio. Property is also a relatively stable asset that fits into income or capital growth style portfolios.

“Give a heart to Mt Barker”

Situated in the Adelaide Hills, 30km east of Adelaide, Mount Barker is anticipated to become the largest settlement in South Australia outside metropolitan Adelaide in the next decade or so.

Mt Barker Concept Art

The Mount Barker and District Residents Association (MBDRA) has identified a significant site in the heart of Mount Barker, that they believe will become available in the near future. The Association has developed a plan to create a substantial Town Square to give a heart to Mount Barker.

The Association intends to crowdfund a two stage development through DomaCom. This is a once in a lifetime opportunity for the residents of Mount Barker, and investors alike, to construct a civic and cultural centre that could be the template for regional cities and towns Australia wide that will help retain and attract new residents into the future.

The association also hopes to attract local and state government investment into the development. Plans include a civic office, a performing arts centre and gallery, a boutique hotel and retail and residential apartments. The estimated cost is $100m.

Stage 1 – Land Acquisition & Development Approval

The mission in Stage 1 is to acquire the land and obtain development approvals.

Stage 1 Targeted funds
Land acquisition & development approvals $16 million
Estimated value of Stage 1 after completion $20 million*

*A potential gain of 20% is estimated for the land component of Mt Barker Town Square development with approvals in place, based on external assessment of the land.

Stage 2 – Construction

The objective in Stage 2 is to raise funds to cover:

  • Detailed design work
  • Legal and administrative costs of the tender process to engage contractors
  • The estimated costs for construction and commissioning
Stage 2 Targeted funds
Construction of the Mt Barker Town Square $90 million
Estimated value of Stage 2 after completion A return will be determined during the completion of Stage 1

For more information on DomaCom’s crowdfunding campaign on this project, please visit https://www.domacom.com.au/public-crowdfunding-campaigns/commercial-properties/mount-barker-town-centre-sa/

Kidman Station update

DomaCom’s crowdfunding campaign is in its 10th month is still progressing. We’ve had a lengthy period where we needed to find buyers for the operating cattle business, and eventually partnered with Lloyds Business Brokers, who have since found significant interest from a number of parties to the extent that we are confident that this part of the transaction can proceed.

A60R9569

Retail superannuation solution

We have been asked by many people if they can invest via their superannuation fund, which of course can be achieved if they have a self-managed super fund.  But for those with an industry or retail superannuation fund, they simply cannot.

To that end we have been working to access with a retail superannuation partner, and we’re close to now achieving this. What this means, is that superannuation fund members who want to invest in Kidman Station, they could rollover a small part of their superannuation fund savings into a separate retail superannuation fund.

From an investment perspective, an allocation to a defensive rural investment could be considered reasonable in a long term portfolio. Having a retail fund alongside an industry fund could also enable investors to participate in other discretionary assets that they have a desire to invest in but are not allowed to by their existing superannuation fund.

We believe that this retail superannuation solution should attract many more investors to our Kidman Station crowdfunding campaign, enabling us to complete the Kidman land transaction. We will keep you informed as to the progress.

DomaCom Tax Statements coming soon

The preparations for end of financial year is underway at DomaCom.  We are currently checking all the components involved and should be in a position to issue Tax Statements for each sub-fund by the end of September 2016.

In the meantime, if you have any questions about our Tax Statements, please contact: clientservices@domacom.com.au.

Upcoming events

With the emergence of Spring we are looking forward to seeing you at one of the following exciting events.

InvestorDaily Wrap, Platform & Masterfunds Conference

The 2016 event promises to take a deep dive into the issues around the platform space and the implications of technology, in particular blockchain, with an inaugural debate posing the question: ‘Are traditional platforms redundant?’ The conference will also address:

  • The government’s approach to fintech
  • Robo advice and cyber security
  • The state of the financial advice market
  • Trends in SMSF platform technology
  • Overview of the dealer group market

For more information, go to: https://www.investordaily.com.au/masterfundsconference?utm_source=ID&utm_medium=email&utm_campaign=masterfunds

PIR Property Funds Industry Forum

The PIR Property Industry Funds Forum is the pre-eminent conference on the property funds calendar and a must-attend event for all industry professionals.  This year’s conference will be held in at the Novotel Twin Waters, Sunshine Coast QLD from 16th – 18th October.

DomaCom CEO, Arthur Naoumidis, will be among the speakers at this conference with a theme of ”A marketplace where entropy reigns supreme”.

For more information on this conference and to register, visit https://www.pir.com.au/conferences/forum_2016/welcome

InvestorDaily Asset Strategy Forum

We’re also a proud sponsor the inaugural InvestorDaily Asset Strategy Forum, which promises to bring a unique, energetic and fast paced environment to the world of funds management.

This one-day event in both Sydney and Melbourne will showcase presentations from leading fund managers and analysts working across six sectors in the funds management industry, with strategy presentations capped at just 15 minutes.  This approach will ensure advisers will benefit from the short, sharp and engaging presentations.

The Sydney forum will take place on 19th October at Jones Bay Wharf – Doltone House.  The Melbourne forum will take place the day after, 20th October at Melbourne Convention and Exhibition Centre. For more information on this event, please visit https://www.investordaily.com.au/asset-strategy-forum

 

In the media

Here are some of our latest media coverages, but for the full list, please visit  In the Media section of our website.

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.

June 2016

Kidman Station update

DomaCom’s crowdfunding campaign to acquire the Kidman Station is all systems go.

If we are successful with our bid to secure this iconic property, it will not only be the largest crowdfunding exercise in the world but will stand as a milestone to what we should and can do to retain ownership of our significant agricultural heritage in Australian hands and create significant other crowdfunded investments.

We lodged an indicative non-binding bid on Thursday, May 26 to signal our serious intention to acquire this blue ribbon Australian pastoral land representing a slice of Australian outback history.

Initial investigations indicate a 3.9% gross yield (3.02% net) on the land is achievable, in addition to any future capital gain which investors will also share in, in proportion to their investment. A recent analysis (May 2016) of Australian Farmland Values indicated that the national median farmland price increased by 5.3% in 2015 and over a 20-year period by 5.8% p.a, indicating the total return to investors could average 9.7% gross*.

Lloyds Business Brokers is our confirmed ‘sponsor’ for seeking investors to acquire the operating business in a separate transaction to the land holding. It is anticipated that the operating business will be acquired concurrently with the land.

therm2Following our due diligence, the land component, which is being crowdfunded via the DomaCom Fund, is $210 Million and the operational business is valued at approximately $160 Million.

A national radio and television advertising campaign has commenced, and we seek your support to help spread the word to your clients, your friends and family.  This presents an opportunity to invest in 100,000km2 of Australian rural landholdings

For more information on our Kidman Station crowdfunding campaign, visit www.buykidman.com.au. You’ll be able to access our brochure, Product Disclosure Statement (PDS) and Frequently Asked Questions.

*Source: Rural Bank’s Ag Answers Report – Australian Farmland Values 2015. Rural Bank is a subsidiary of Bendigo and Adelaide Bank.

 

Equity Release Update

DomaCom is pleased to advise that it is working on coordinating some consumer testing as required by ASIC to progress the equity release product. This product will help advisers engage new segments of the market.  It may suit property owners seeking to extract equity to help fund retirement and maintaining their lifestyle.  As advised earlier, the product is still in the process of being reviewed by ASIC and is not likely to be available until 4th Quarter of 2016, subject to ASIC review.

 

New version of DomaCom platform for advisers

We have been busy with a number of enhancements to the DomaCom platform.  In our new V3 environment, advisers will see the following improvements:

  • Ability for your investor clients to complete application forms online and sign electronically – they will then receive an email containing a PIN number to progress their application to a completed stage;
  • Ability for you, as the adviser, to complete application forms online for your clients and simply ask them to sign electronically – again, similar to the above process;
  • Ability to raise funds in a bookbuild and identify the property later – this is to ensure that you’ve raised sufficient funds to cover the purchase price and expenses;
  • Addition of multi property bookbuilds functionality – this has been developed to cater for our multi-property model portfolios; and
  • Ability to allocate money across multiple bookbuilds using our ‘book of books’ feature.

All these new features are available immediately.  If you have any questions on these enhancements, please email clientservices@domacom.com.au

 

Pajingo Cattle Station

Another rural property that is open as a public crowdfunding campaign via the DomaCom Fund is Pajingo Cattle Station, near Charters Towers, in far North Queensland.

pajingo-stationPajingo Station, a 32,000 hectare property, has been in the Black family since 1898.

  • Price: $12 million
  • Estimated yield: 3.75% – 4%, adjusted with CPI annually

Charters Towers Region

It has been claimed that Charters Towers is the centre of the largest cattle district in the state of Queensland. Its cattle district comprises the area lying between the coastal and dividing ranges and between the Clark and Belyando Rivers.

The town of Charters Towers is approximately 130km inland (south-west) from Townsville on the Flinders Highway.

Click here for more information on the Pajingo Station.

 

Empower Wealth’s residential portfolio models

We often hear the perils of putting all your funds into one basket.  In the case of property, we believe you can remove the concentration risk that a single property investment presents by securing an asset allocation strategy across a diversified portfolio of residential properties that suits your client’s circumstances and risk profile.

Empower Wealth selects properties for a range of income and growth residential portfolio models. Empower Wealth’s founder and CEO, Ben Kingsley, will build investment portfolios based on strategies for income and growth, and select investment grade properties to suit.

With as little as $2,500, you can direct your client’s funds into an interest bearing Cash account that, after a 14-day cooling off period, can be applied to the purchase of one or more residential properties as and when they are identified by our professional property advisers.

Our education videos on Empower Wealth’s portfolio models will be available from the website soon under https://www.domacom.com.au/public-crowdfunding-campaigns/model-portfolios/empower-wealth-residential-portfolio-models/.  Stay tuned.

 

Spring Financial Group’s residential portfolio models

In addition to Empower Wealth’s residential portfolio models, Spring Financial Group is another provider that offers multi-property residential portfolios through the DomaCom Fund.

The portfolios offer a direct property solution with immediate diversification across multiple properties, developers and locations.

The models available are:

Growth Cities Portfolio

  • Market/s: Melbourne and Brisbane
  • Number of properties: Total of 10, consisting of 5 x 1-bed and 5 x 2-bed apartments
  • Portfolio Value: $5,002,500 (excluding stamp duty)
  • Suggested investment size: $25,000 to $500,000

Spring FG’s Growth Cities Portfolio consists of ten (10) luxurious apartments across nine landmark projects by the leading Melbourne and Brisbane developers Devine Limited, BPM Group, Metro Property Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $25,000 and up to $500,000 to invest in mind.

Melbourne City Portfolio

  • Market/s: Melbourne
  • Number of properties: Total 5, consisting of 3 x 1-bed and 2 x 2-bed apartments
  • Portfolio Value: $2,549,500 (excluding stamp duty)
  • Suggested investment size: $10,000 to $100,000

Spring FG’s Melbourne City Portfolio consists of five (5) luxurious apartments across four landmark projects by leading Melbourne developers BPM Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $10,000 and up to $100,000 to invest in mind.

Brisbane City Portfolio

  • Market/s: Brisbane
  • Number of properties: Total 5, consisting of 4 x 1-bed and 1 x 2-bed apartments
  • Portfolio Value: $2,296,500 (excluding stamp duty)
  • Suggested investment size: $10,000 to $100,000

Spring FG’s Melbourne City Portfolio consists of five (5) luxurious apartments across four landmark projects by leading Melbourne developers BPM Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $10,000 and up to $100,000 to invest in mind.

Contact your local Business Development manager for more information on Spring FG’s residential portfolio models.

 

In the media

Here are some of our latest media coverages, but for the full list, please visit In the Media section of our website.

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.

April 2016

PIR Research Report

We’re pleased to announce that the DomaCom Fund has received an A+ rating from Property Investment Research (PIR), Australia’s leading provider of property funds research and analysis.

Broadly, the A+ rating states that PIR believes this is a suitable product that has met the aggregate requirements of their review process across a number of key evaluation criteria, and has an acceptable risk/return trade-off that should generate risk adjusted returns in line with stated investment objectives.

DomaCom CEO, Arthur Naoumidis said, “I’m very pleased with our A+ rating from PIR. Our Fund is still relatively new, so this rating is timely and will put us in a better position to achieve further market penetration. That our unique crowdfunding solution and secondary market liquidity facility addresses investors’ property asset allocation needs is clearly prevalent. We’ll use this rating as a base to continually improve our platform and deliver product enhancements to broaden the market in the very near future.”

Commenting on his firm’s research of the DomaCom Fund, Dinesh Pillutla, Managing Director of PIR said, “We have a sound framework for rating investment product offerings in Australia, and our review process gives consideration to a broad number of qualitative and quantitative factors. The DomaCom platform is an innovative solution to the age old problem of investing in real estate, which is its high upfront cost. The fractional model gives investors the ability to diversify and control their investment in direct property, with or without borrowing”.

“The DomaCom Fund has earned its stripes for the A+ rating and we look forward to seeing its acceptance in the market and further development in the coming years”, he said.

To obtain a copy of our PIR report and/or other research reports we have available, visit https://www.domacom.com.au/the-domacom-fund/research-reports/

Atchison Report

Atchison Consultants have released a report on property asset allocation that shows a rolling 20 year return on residential property in three different risk categories; moderate, balanced and growth*.

The report supports property as an inclusive strategy for moderate, balanced and growth portfolio types providing evidence that residential property can enhance the return in each portfolio category over the longer term.

Growth_Portfolio

For a growth portfolio a 20% asset allocation could increase the portfolio by 9.6%.

Balanced_Portfolio

For a balanced portfolio a 15% asset allocation could increase the portfolio by 6.7%.

And for a more conservative or moderate portfolio a 10% asset allocation to residential property could increase the portfolio return by 3.7%. Moderate_Portfolio

It is likely that the relatively low volatility of residential property provides a stable anchor to these portfolio types.

*Source: Atchison Consultants, Portfolio Return Commentary – Residential Property, November 2015

Residential portfolio models by Empower Wealth

With the DomaCom Fund, you can remove the concentration risk that single property investment presents by securing an asset allocation across a diversified portfolio of residential properties that suits your client’s circumstances and risk profile.

With as little as $2,500, you can direct your client’s funds into an interest bearing Cash account that, after a 14-day cooling off period, can be applied to the purchase of one or more residential properties as and when they are identified by our professional property advisers.

The models in brief:

  • Income Portfolio – the Income Portfolio will target properties in popular areas for renters to ensure solid yields and low vacancy. These properties are likely to be in major cities and close to valued amenities such as schools, shopping centres and public transport.

IncomeModelPortfolioGraph

  • Growth Portfolio – The Growth Portfolio will target properties that display the opportunity for higher than average growth. These properties are likely to be in areas which have not yet seen large price increases but are close to more popular areas which have boomed in recent years. The Growth Portfolio may also include borrowings of approximately 30% of the purchase price. This means that less capital needs to be raised from investors, but each investor will have a proportional share of the debt.

GrowthModelPortfolioGraph

The model provider: Empower Wealth

Empower Wealth selects properties for a range of income and growth portfolio models. Empower Wealth’s founder and CEO, Ben Kingsley will build investment portfolios, based on strategies for income, growth or a combination, and select investment grade properties to suit.

Ben is an experienced and qualified property investment advisor with a wealth of industry knowledge and experience and a proven track record in creating enhanced wealth outcomes based on independent, property research and strategies. He is also Chair of the Property Investment Professionals Association and was voted Property Investment Adviser of the Year in 2014 and 2015 by readers of Your Investment Property Magazine.

Empower Wealth focuses primarily on established residential properties in pockets that deliver good growth prospects or, sound yield on an investment.

For more information on our residential portfolio models, visit https://www.domacom.com.au/residential-portfolio-models/

Residential portfolio models by Spring Financial Group

spring_fg_realty_master_rgb_logoSpring FG Realty Pty Ltd has partnered with us to offer multi-property residential portfolios through the DomaCom Fund.

The portfolios take advantage of DomaCom’s new multi-property bookbuild functionality, offering a direct property solution with immediate diversification across multiple properties, developers and locations.

The multi-property portfolios prepared by Spring FG Realty are based on:

  • Minimum of $10,000 investment amount – gives the investor exposure to up to five (5) properties in different geographic locations.
  • Minimum of $25,000 investment amount – gives the investor exposure to up to ten (10) properties in different geographic locations.
  • Minimum of $100,000 or more investment amount – provides exposure to up to 15 properties in different geographic locations.

Each of the developers, developments and individual properties in the assembled portfolios has passed Spring FG Realty’s stringent due diligence processes to facilitate not only inclusion in the DomaCom platform, but investment by Spring Financial Group’s direct investing clients.

In accordance with the DomaCom Fund’s processes, all properties will be independently valued by a leading valuation house. All properties include window furnishings, depreciation schedules, third-party quality inspections on settlement and first tenant and/or rental guarantee periods of a minimum of 42 days and up to 90 days providing investors further peace-of-mind.

The model portfolios offered in the first release of portfolios designed by Spring FG Realty comprise a total of, in excess of $25 million of high-quality inner-city Melbourne and Brisbane residential assets developed by Australia’s leading public and private company developers.

Each of the projects is under development/construction with various expected completion dates over the next 12 to 18 months.

The models available are:

Growth Cities Portfolio

  • Market/s: Melbourne and Brisbane
  • Number of properties: Total of 10, consisting of 5 x 1-bed and 5 x 2-bed apartments
  • Portfolio Value: $4,840,500 (excluding stamp duty)
  • Forecast gross rental yield: 4.5% pa
  • Forecast annual capital growth over 10-year cycle: 4.2% pa
  • Suggested investment size: $25,000 to $500,000

Spring FG’s Growth Cities Portfolio consists of ten (10) luxurious apartments across nine landmark projects by the leading Melbourne and Brisbane developers Devine Limited, BPM Group, Metro Property Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $25,000 and up to $500,000 to invest in mind.

Melbourne City Portfolio

  • Market/s: Melbourne
  • Number of properties: Total 5, consisting of 4 x 1-bed and 1 x 2-bed apartments
  • Portfolio Value: $2,296,500 (excluding stamp duty)
  • Forecast gross rental yield: 4.5% pa
  • Forecast annual capital growth over 10-year cycle: 4.2% pa
  • Suggested investment size: $10,000 to $100,000

Spring FG’s Melbourne City Portfolio consists of five (5) luxurious apartments across four landmark projects by leading Melbourne developers BPM Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $10,000 and up to $100,000 to invest in mind.

Brisbane City Portfolio

  • Market/s: Brisbane
  • Number of properties: Total 5, consisting of 4 x 1-bed and 1 x 2-bed apartments
  • Portfolio Value: $2,296,500 (excluding stamp duty)
  • Suggested investment size: $10,000 to $100,000
  • Forecast gross rental yield: 4.5% pa
  • Forecast annual capital growth over 10-year cycle: 4.2% pa

Spring FG’s Melbourne City Portfolio consists of five (5) luxurious apartments across four landmark projects by leading Melbourne developers BPM Group and Blue Earth Group.

The portfolio has been assembled with investors with a minimum of $10,000 and up to $100,000 to invest in mind.

About Spring FG Realty

Spring FG Realty Pty Ltd is a wholly-owned subsidiary of ASX-listed diversified financial group Spring FG Limited (ASX: SFL) and part of the Spring Financial Group.

It holds corporate real estate licences in New South Wales (1708663), Queensland (3510266), Victoria (074746L) and ACT (18401881). Its role in the Spring Financial Group is to research and identify residential property solutions for inclusion in portfolios of Spring Financial Group clients.

Spring FG Realty applies stringent due diligence processes to ensure each property passes high standards in quality and fit their clients’ overall portfolio requirements.

Spring Financial Group clients hold residential property investments exceeding $500M in value.

Please visit our Residential Portfolio Models by Spring FG  page for more information.

Pajingo Cattle Station

We have now created a public crowdfunding campaign for the Pajingo Cattle Station, near Charters Towers, in far North Queensland.

Pajingo Station, a 32,000 hectare property, has been in the Black family since 1898.rural-opportunities

  • Price: $12 million
  • Estimated yield: 3.75% – 4%, adjusted with CPI annually

Charters Towers Region

It has been claimed that Charters Towers is the centre of the largest cattle district in the state of Queensland. Its cattle district comprises the area lying between the coastal and dividing ranges and between the Clark and Belyando Rivers.

The town of Charters Towers is approximately 130km inland (south-west) from Townsville on the Flinders Highway.

Please visit our Pajingo Cattle Station page for more information.

Coming soon for public crowdfunding campaign – Mywurlie/Queel Aggregation

We are currently in discussions to create a public crowdfunding campaign for Mywurlie/Queel Aggregation in Midwestern Highway, Gunbar NSW. Mywurlie/Queel Aggregation is a diverse grazing, dryland farming and irrigation property located in the tightly held Gunbar area, between Griffith and Hay, NSW. Descendants of the Porter family have farmed here since 1881.

Mywurlie1The property lends itself to a wide range of agricultural enterprises through the ability to irrigate up to 1,000 ha already developed. The property has fifteen kms of Mirrool Creek frontage which is the only major catchment between the Lachlan and Murrumbidgee rivers, enjoying beneficial flood-out and water harvesting from the same. Bitumen road access via Wongalea Road to homestead.

The property is ideally located 60 kms from Hay and 110 kms from Griffith. Weekly livestock markets are located at Griffith and Wagga Wagga. Many feedlots are also close by for marketing of livestock. Grain silos are located at Goolgowi and Hay. A daily air service is operating from Griffith to Sydney. A school bus from Gunbar to Goolgowi is in operation.

It is widely known locally that Mywurlie is one of the best fattening and grazing properties in the western Riverina. The diverse range of soil types lends itself to utilise rainfall in any month of the year. A holistic grazing strategy has been adopted for the past 25 years allowing a wide range of native plant species creating enormous carrying capacity.

It is widely known locally that Mywurlie is one of the best fattening and grazing properties in the western Riverina. The diverse range of soil types lends itself to utilise rainfall in any month of the year. A holistic grazing strategy has been adopted for the past 25 years allowing a wide range of native plant species creating enormous carrying capacity.

Price range: $8 – $8.8 million

Yield: Approx. 4% – 6% p.a from existing owner via a lease back arrangement

More information on Mywurlie will become available very soon on our website under the Public Crowdfunding Campaigns section.

Linton Estate

DomaCom has begun a campaign to crowdfund the Linton Estate in Ballan, Victoria’s first purpose-designed residential homes for the LGBTI (lesbian, gay, bisexual, transgender and intersex) community.Linton

Linton Estate was founded by Peter Dickson, who has long had a vision for building a residential village for the LGBTI and “straight friendly” community.

The project is now offered through DomaCom, as the only ASIC-registered fractional property investment platform in Australia, to join in the development by fractionalising it on its platform.

  • Stage 1 – Land Acquisition. This project has already been met with significant support with bids reaching 70% of the target for Stage 1 – land acquisition of $650,000.
  • Stage 2 – Rezoning & civil works. Stage 2 will raise a further $1.8 million to complete rezoning and civil works for the estate.
  • Stage 3 – Develop and build. Stage 3 is the build and development of boutique townhouses. The entire projects is expected to be finished in two years at a total cost of more than $30 million.

Linton_SubdivisionPlanning

For more information on the Linton Estate public crowdfunding campaign, visit https://www.domacom.com.au/linton-estate/

Woolworths, Orange NSW

For illustrative purposes, Woolworths in Orange, NSW is an example of a commercial property that you could look to crowdfund in the DomaCom Fund.   Inclusive of a long term lease to Woolworths Ltd until 2034, this immaculately presented property offers a rare opportunity for astute investors to purchase a freestanding Woolworths supermarket with a rare net lease, ensuring the Lessee pays for all statutory and operating outgoing expenses.

A diverse range of industries including healthcare, mining, agriculture, retail and education results in attractive demographics with 15.9% of Households earning a high income compared with 11.3% average for regional New South Wales, and with an unemployment rate of only 4.4% it is sitting well below the Regional NSW rate of 6.1% (Source: ABS 2011 census).

Woolies_2Located a short distance from Orange Train Station, 100 metres from the Mitchell Highway and surrounded by an expansive on-grade council car park, the property provides a high level of connectivity to the local community and ease of access for patrons.

  • Price range: $15 – $17 million
  • Net income: Approximately $1,098,360

For more information on this Woolworths (Orange, NSW) public crowdfunding campaign, visit https://www.domacom.com.au/woolworths-orange-nsw/

Student accommodation popularity on the rise

Several DomaCom private bookbuilds have been completed on student accommodation in Melbourne, yielding a higher than average net income for investors in the 6%- 8% range.

In the last week, we’ve learnt that Blue Sky Private Real Estate will form a $1 billion student accommodation joint venture with leading global investment firm Goldman Sachs.

According to their media coverage, the partnership aims to build a portfolio of 5000 to 10,000 quality, purpose built and well located student accommodation across Australia and New Zealand over the next few years. It has been reported this is a sector which has been heavily undersupplied relative to other global student markets including the US and UK.

Education remains one of Australia’s leading exports, an industry that’s worth in excess of $18 billion* per annum and growing. With our close proximity to Asia and the rapid expansion of the Asian middle class wanting their children to be educated in Australia, we anticipate investor appetite for this type of property will continue to rise.

Whilst the greatest concern by many for student accommodation is the limited scope for capital growth, it may be the right type of investment if you are heading into retirement and want an income well above bank interest.

As always, investment strategies need to take into account your current stage of life as well goals for the future. If you are interested in exploring student accommodation as an investment consideration for your clients, please contact our Sales Team at sales@domacom.com.au

*As at 2014-2015. Source Austrade – Australia Benchmark Report 2016.

Kidman Station update

Some of you may be concerned that DomaCom does not appear to be making much progress in launching a bid for Kidman Station, but we can assure you a lot of work has been going on behind the scenes and we are still most definitely in the hunt.

There has been a lot of talk in the media in relation to foreign ownership and the lack of participation by our superannuation funds to invest in our agricultural assets, which DomaCom and our associates have been vigorously fanning, and to good effect.

DomaCom has also featured quite a bit in both the mainstream media and the trade media that filters out to the financial industry. Visit our In the Media section for details.

So where are we at?

There is currently a Senate Inquiry into foreign ownership to which DomaCom has made a submission.  S.Kidman & Company are referenced in this inquiry, which means  the Foreign Investment Review Board (FIRB) is unlikely to make a determination on the sale to overseas interests until the inquiry report is released. This is due out on 8th April, and gives us additional time to rally further support.

  • We have received around 4,500 expressions of interest to the tune of $67m. The land component we think will be in the vicinity of $150m.
  • The operating cattle business is valued at around $200m and we are in advanced discussions with a consortium to fund the purchase of the business in a separate transaction to the land. This group has allocated more funds than are required and we are hoping the surplus will go towards the land.

So we are in a reasonably good position, potentially only $30m – $40m short on the property side. And as soon as we can make a positive announcement on the business, we are confident that many others will join the campaign to secure our bid.

In the media

Here are some of our latest media coverages, but for the full list, please visit In the Media section of our website.

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.

January 2016

Happy new year with an exciting year ahead


Happy new year from the team at DomaCom. We wish you every success in your business in 2016 and look forward to helping you achieve your clients’ goals and those of your business.

At DomaCom, we are looking forward to what promises to be a very busy and exciting year with several product enhancements and new products in the pipeline.

The DomaCom Fund continues to grow with over 1,000 investors currently owning fractional interests in many properties.

We have increased our APL listing to 35 AFSLs and our Accredited Adviser numbers have grown to  315.

Property Wealth Planning Simulator

DomaCom has begun working with property adviser, Empower Wealth, to provide a variety of investment models via their Property Wealth Planning Simulator.

Empower Wealth will offer growth, yield, balanced and mixed property portfolio models each containing multiple properties to provide diversification.

With 5 and 10 year holding and ‘if sold’ projections based on no debt property purchases, advisers  can provide an asset allocation solution with minimal risk and diversification.

A geared model will also become available as DomaCom finalises a lending solution for the fractional fund.

The Simulator model will be available to all DomaCom accredited advisers along with client presentation material.

Empower Wealth New Book

Free to DomaCom Accredited Advisers who wish to integrate property into their client advice model.  Please email us at sales@domacom.com.au  

 

A unique opportunity – let’s keep the Kidman Station in Australian hands

Background – About Sir Sidney Kidman

Sidney Kidman founded the company, S. Kidman & Co. Ltd, in 1899 at the age of 42 as a small business with his brother in droving and trading cattle and horses. He built the business into the world’s largest privately owned landholding that, at its peak ran more than 600,000 cattle and 200,000 sheep.

A60R9569

Sidney came up the hard way starting as a roustabout and bullock driver, drover, stockman and trader servicing the new mining towns springing up in outback New South Wales and South Australia. He and his brother, Sackville, acquired their first property in 1895 and built it from there. He eventually owned or had a large interest in as many as 68 separate stations covering an estimated 220,000 – 280,000 square kilometres.

Sidney Kidman was knighted in 1921 for his services to the 1914-1918 war effort supplying the troops with wool, meat, horses, ambulances and planes.

Kidman & Co. Ltd is currently a privately-held unlisted public company and is Australia’s largest private landholding. The business is majority family owned.

The business includes 12 property aggregations across 16 pastoral holdings in South Australia, Queensland, Western Australia and the Northern Territory including 3 properties engaged in cattle feedlot, cropping and breeding, plus the Adelaide Head Office.

The company’s landholding covers 101,000 square kilometres.

Aus map 2

Price – including return information

The crowd-funding campaign to acquire the Kidman Station via the DomaCom Fund will separate the land component from the operating business.

DomaCom’s estimates of the S. Kidman & Co. Ltd’s landholding, which covers 101,000 square kilometres, are:

  • Between $220 Million – $250 Million for the land component (with a combined value of the operating business and land around $360 Million); and
  • Indicative returns around 8% – 9%* from combined rent and capital growth.

Please note that crowdfunding campaign to acquire the Kidman Station via the DomaCom Fund will be restricted to the land component only. DomaCom is seeking interest for the operating business.

*This is an estimate only based on DomaCom’s assessment of the value of the land component.

The Opportunity – sale of Sir Sidney Kidman’s empire

It has come to national attention that the Kidman board decided it is now a good time to capitalise on current demand for quality Australian agricultural assets because:

  • Cattle prices have increased 50% in the past 12 months;
  • Australia has good beef cattle trade agreements with Asia;
  • The Australian dollar is low; and
  • S. Kidman & Co. Ltd is a stable multi-generational business.

DomaCom is keen to see this iconic agricultural business remain in Australian hands and this is a great way for Australian Mums and Dads to “own a bit of the farm”.

We have been overwhelmed by the positive responses and feedback for the Kidman Station crowdfunding campaign. To date we have received over 4,000 Expressions of Interest and recorded in excess of $60 million.

Why rural, why Kidman?

Rural property is a forgotten sub-class of the broader property asset class, but is considered a defensive asset because of its long term nature as the foundation of our agricultural and pastoral industries – our food producers. Australia has some of best agricultural and pastoral property in the world and whilst currency and commodity prices fluctuate affecting the businesses upon the land, the land itself is a relatively stable asset in terms of value and yield.

DomaCom’s crowdfunding campaign for the Kidman Station presents as a good investment. Whilst the campaign comes late in the day, the high profile of the Kidman Station has brought to the surface an appetite among Australian investors for rural exposure. A recent survey of respondents to the Kidman campaign revealed 33% have a SMSF, with the balance spread across industry, retail, corporate and public sector super funds.

Rural property, generally, is a higher yielding class of property than residential, depending on whether it is pastoral or used for cropping, and where it is located. Long term tenants are another feature of rural property that lend the sector a higher degree of stability.

The opportunity for you

We recently surveyed thousands of respondents to our Kidman Station crowdfunding campaign to find out what type of superannuation they have. Many people had told us they wanted to have some control over their super that would enable them to put an investment like Kidman into their super, but were unable to do so.

From the responses we received only 33% said they have a SMSF, but want to include a property investment of some kind. Therein lies the opportunity for financial advisers, and the DomaCom fractional model will accommodate the demand. The DomaCom model also provides a secondary market.

There are and will be many more opportunities to acquire interests in agricultural and pastoral properties in this way and with a growing appetite, we believe financial advisers should position themselves to accommodate the demand.

Property SMSF

The DomaCom Property SMSF is a low cost, start-up Self-Managed Super Fund (SMSF) that nurtures young investors with a ‘seed’ investment in property within an SMSF.

Property SMSF

The idea is that as the young investor’s SMSF grows and they diversify into other asset classes, the super fund becomes a more mainstream SMSF that will require the adviser’s asset allocation and diversification expertise, to eventually become a long term full service fee paying client.

For the financial adviser, the Property SMSF is nursery that will help seed tomorrow’s clients today!

How does it work?

A DomaCom Property SMSF can be established with as little as $2,500 for your client with a direct application to the DomaCom Fund’s Cash Pool.

Your client can then join a property bookbuild, a process that enables a group of property buyers with a common goal to invest in a specific property without committing to purchase the entire property.

DomaCom Property SMSF offers:

  • Fund establishment;
  • Administration;
  • Audit; and
  • A choice of properties on the DomaCom Fund.

For more information on fees and costs and related parties that assist us with the day-to-day management of DomaCom Property SMSF, please contact your local Business Development Manager or visit https://www.domacom.com.au/the-domacom-fund/property-smsf/

Upcoming events

2016 SMSF Association National Conference

We are a proud sponsor once again of the upcoming SMSF Association National Conference in Adelaide, 17-19 February 2016.

Following the positive response to the lifecycle theme at last year’s conference, the Association is convinced it should adopt this approach again. Commenting on this year’s recycled approach, Association CEO Andrea Slattery says “We received very encouraging feedback about how understanding the SMSF lifecycle provided the correct architecture for the conference.

We believe that better outcomes arise when professional advisors and trustees are armed with the best and latest information most appropriate to their circumstances.

Delegates enthused about the concept with comments such as: ‘like this style, it reflects my businesses model’; ‘it assisted with choice of topics as it gave an idea of what the content would be’; and ‘this helped (me) hone in on areas of interest’.”

Visit DomaCom at Stand 43 to find out more about how you can use the DomaCom fractional investing model for your clients. If the DomaCom Fund is on your APL you can also enrol for the accreditation program for an extra 4.25 CPD points. We look forward to seeing you there.

In the media

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.

DomaCom Newsletter – November 2015

managedaccounts.com.au gives DomaCom the green light

managedaccounts.com.au (ASX: MGP) is the first managed account provider to add the capability of fractionalised real property onto their platform.

Managed account solutions offer portfolios created to meet specific investment needs; defensive, conservative, income and growth but until now, real property has been under-represented from many model portfolios.

Property is our largest asset class and with less volatility than equities it should play a pivotal role in anchoring investment portfolios, particularly residential property which has been absent in managed account portfolios.

For example, an income portfolio should have some higher yielding commercial property and a growth portfolio should have some residential property, as the low volatility of property is ideal for a defensive or conservative model.

The integration with DomaCom will give advisers access to any property in Australia provided a bookbuild can be completed. Advisers can initiate a private bookbuild within their own client base or a public bookbuild for a wider audience.

Offering property exposure within a managed account portfolio will give advisers, particularly those working with SMSFs something they have never had. Property is a major asset class in high demand but until the DomaCom solution, something that had to be managed externally to their managed account and usually, as a whole asset purchase. The DomaCom model makes it easy for advisory firms managing client portfolios to add property without the need for LRBA arrangements.

There is no other platform where financial advisers can precisely set the asset allocation to real property proportionate to their clients’ need, other than on DomaCom.

DomaCom wins most ‘disruptive’ award

More great news to share with you is from the recent Afiniation Showcase Awards held in Sydney where DomaCom won the top prize in the Disruption category. The judges selected the product they felt has the most disruptive effect on the current market and participants.

Marc Evans, Afiniation co-founder and head judge said that the winner of the disruption category is going to change the way that the financial markets work moving forward. The judging panel felt that DomaCom really is a new way to invest in the Australian property market and that this new innovation will fundamentally disrupt the way people can invest in housing in Australia.

Our objective in creating DomaCom was to make property more easily available and affordable to investors by eliminating the need to buy a whole property.

National property clock

Like the economic clock which reflects the likely position of a range of asset classes in relation to each other, Heron Todd White’s National Property Clock for houses and units suggests the likely rising or falling position of many of Australia’s major capital and regional cities which may be helpful as a guide.

Click on the below images to enlarge.

Clock1

 Clock2

Property bookbuild case study by Fortuna Financial

Firm: Fortuna Financial

Dealer group: The Financial Link Group

State: WA

About the firm: Fortuna Financial is a boutique, independent financial planning firm providing a wide range of financial services. We have clients nationally as well as in metro and rural Western Australia. Our advisers are Paul Ellenberg (Principal) and Giulia Cunningham.

Key drivers – reasons for considering Fractional Property Investing (FPI) using the DomaCom Fund:

  • We wanted to give our SMSF clients exposure to real property investment; and
  • Without having to tie up a significant proportion of the SMSF’s assets into one property investment, or having to use LRBA.

Getting clients ready for property investment:  Using the RP Data reports available on the DomaCom platform was useful for researching growth rates and rental yields.

However, most clients have already inquired about investing in property at some point.

The bookbuild process:  

  • Statement Of Advice (SOA)
    • We were able to use the same DomaCom SOA wording for all our clients joining this private bookbuild.
  • Investor applications
    • It took just under 15 minutes per client. Pretty straight forward to complete and get clients to sign.
  • We spoke to various real estate agents and property industry participants to identify the type of property for our clients to invest in.
  • Property purchased was an off-the-plan National Rental Affordability Scheme (NRAS) property in Rockingham, WA.

Fortuna2

About the property

  • 2-bedroom, 2 bathroom, off-the plan NRAS property due for completion in 2016.
  • Rockingham, WA is beachside satellite city of Perth, approximately 40km south of Perth CBD.
  • Price: circa $400,000.
  • Approximate yield:  6-7% p.a.

Property feature – Unit 1, 21 Pickwick St, Cannon Hill

CannonHill1

A great, new 3-bedroom, 2-bathroom townhouse within a smaller, boutique development just 8km from Brisbane CBD is for sale.

Unit 1 is the front townhouse and has the largest garden with windows on both sides of the dwelling, with an exclusive use of courtyard and terrace totalling 66.5sqm.

This boutique development is among one the higher quality projects in Cannon Hill and the schedule of finishings is extremely impressive. Located within 100m of a major shopping centre (Kmart, Coles, Aldi, Bunnings, etc) and bus depot, the Cannon Hill train station is also only a 5-minute walk.

CannonHill2

With an estimated rental of $580 to $590 per week (representing approximately 5% yield), this property with its winning location presents itself as a strong investment opportunity if you’re after good capital growth with low rental risk. The asking price is $585,000.

For more information, please contact sales@domacom.com.au

PD Days

Professional development days are a great opportunity to put fractional property investment in front of advisers, explain how this unique model works and how advisers can use it in income and growth strategies for clients.  Contact your relevant DomaCom State Manager, or email sales@domacom.com.au to discuss a presentation and demonstration at your next PD day.

DomaCom accreditation

Over 350 advisers have now registered for accreditation to use the DomaCom Fund, a positive sign that interest in property syndication is on the rise.

Stephen Burgin of Interprac Financial Planning talked to DomaCom about why he completed the accreditation and what he expects the fractional model will bring to his clients and his practice.

Accreditation video

 

 

 

 

Learn how to become accredited at https://www.domacom.com.au/the-domacom-fund/domacom-accredited-adviser-program/

 

Upcoming events

2015 FPA Congress – DomaCom is once again a sponsor of the 2015 FPA Congress that will take place in Brisbane, QLD on 18th to 20th November 2015.

Shaping Futures is the theme of this year’s Congress with a focus on transforming your thinking and your business using TED Talk (Technology, Entertainment, Design) style insights from game-changing experts who have emerged as thought leaders in their field.

Visit DomaCom at Stand 20 to talk to your relevant state manager to find out more about how you can use the DomaCom fractional investing model for your clients. You can also enrol for the accreditation program for an extra 4.25 CPD points. We look forward to seeing you there.

2015 AIOFP Conference – DomaCom is also sponsoring the 2015 AIOFP Conference that will take place in Sanctuary Cove, QLD on 18th to 21st November 2015.

This conference has two clear objectives. The first is to assist members with decisions on how best to grow their practice in terms of new clients, reducing costs, improving technology and client engagement. The second objective is to demonstrate how members can best protect themselves from both regulatory and market pressures that can and do severely upset practice development.

Arthur Naoumidis, CEO of DomaCom will be presenting and looks forward to meeting as many members as possible, together with Warren Gibson, DomaCom’s Head of Sales and Marketing.

Talking to the sponsors

Apart from technical workshops, plenary sessions and catching up with your peers, conference events are a great opportunity for delegates to investigate new products and services to expand their value proposition, enhance client service and increase revenue.

Where else can you talk to as many as 100 or more service providers and investment managers in the one room?

DomaCom’s sales and marketing manager, Warren Gibson’s advice is to look for new and innovative exhibitors ahead of the conference then make a point to visit their stand to get more information. Just 5 minutes spent talking to the representative, could lead to something substantially beneficial for your business.

 

In the media

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.

DomaCom Newsletter – September 2015

 

What’s stopping you?


There’s an old saying that if you continue to do what you have always done you’ll continue to get the same result you have always got. Therefore, you need to change something in your approach or your business process to get a different, and hopefully better, result.

Property is a major asset class

For a financial adviser, this may mean adjusting your service offering to expand your client reach, or introducing new or different products or asset classes to what you have traditionally offered.

The DomaCom Fund offers the benefit of both with the result that you can increase your fee basket, nurture the next generation of clients whilst looking after their interests and protecting them from unscrupulous sales people, which will also protect your FUA.

Multi-property portfolio approach

The property asset class through the DomaCom Fund now gives you the ability to offer a diversified portfolio containing several properties, different types in different geographic locations.

This strategy, like an equities portfolio, will spread risk and ensure that at the very least there are always parts of the portfolio that are performing. Because the portfolio is cash funded, there is no risk from any underlying debt and the chances of all the properties in the portfolio being untenanted at the same time are virtually nil.

For those who want a geared fractional property investment solution, DomaCom is currently developing a leverage facility.

Nurture tomorrow’s client base today

You can use the DomaCom Fund to attract Gen Y clients, perhaps the children of your clients,  who prefer property to equities, and ease them into a portfolio with as little as $2,500. As their savings grow within a portfolio of properties, you have the ability to engage them with other products and services.

Recent research indicates that Gen Ys are into property at a far younger age than the Gen X and baby boomer cohorts and in fact generally purchase an investment property before they purchase a home.

So too, retirees looking for income from small commercial or student accommodation property portfolios that deliver above average rental yields.

Protect your clients from property spruikers

Don’t give your clients away to property marketeers and risk your funds under advice, or more importantly, allow your clients to purchase over-priced developments in areas where a glut may develop down the track.  Get on the front foot.

The DomaCom Fund is a registered Managed Investment Scheme (MIS). As such, it is a structure that you can readily recommend, provided it is on your Approved Product List (APL).

The underlying properties can be recommended for you by a qualified property adviser of your choice.

Spring Financial Group’s multi-property portfolios


Following Spring Financial Group’s approval of the DomaCom platform a couple of months ago, we have been working closely with them to finalise their property portfolio offerings.

Spring Financial Group’s expertise in direct property investing is well known and we are delighted they see the merits of the fractional ownership approach.

Diversification is the backbone of modern portfolio theory and Spring Financial Group have assembled more than 50 brilliant capital city properties in a series of boutique and landmark projects by some of the countries most experienced and best regarded developers and packaged them into portfolios of 5, 10 and 15 properties each.

Each portfolio will consist of properties in leading inner-city geographic locations. In this way portfolios can both maximise upside and minimise downside by spreading the investment and so your clients can avoid having all your eggs in one basket.

To meet the needs of the Spring multi-property portfolio bookbuilds, DomaCom has upgraded the platform technology to make it easier for financial planners to bookbuild  multiple properties simultaneously.

Stay tuned for more information on Spring Financial Group’s property portfolios. This capability will be opened and available for a public bookbuild in September.

In the meantime interested advisers who would like further information about how their clients can access Spring’s diversified model portfolios should contact us directly or contact Spring’s group general manager Mitchell Ansiewicz at mitchell.ansiewicz@springFG.com .

DomaCom welcomes new Non-Executive Director


Peter Church OAM has joined the Board of DomaCom Australia Limited. SnipImage

Mr Church has had an outstanding career much of which has been spent in South East Asia where he has implemented strategies for investors and those seeking to develop and carry on business, as well as other related corporate advisory activities. His knowledge and experience will prove invaluable as DomaCom expands into Asia with our first office having opened in Singapore earlier this year.

Upcoming events


Crowdfunding Australia Summit

You have probably heard a lot about crowdfunding in the media. INITIATE is running their second Australian event to explore the phenomenon of Crowdfunding – 21st Century Finance. This summit will be held in Melbourne on Friday 11th September 2015 in conjunction with Deakin University and the Crowdfunding Institute of Australia.

Global and Australian experts, including Arthur Naoumidis – DomaCom CEO, will provide the latest information about this revolutionary method of fund raising. We are pleased to offer you a discount by entering the code “Guest10” should you wish to attend: http://www.eventbrite.co.nz/e/initiate-crowdfunding-australia-summit-tickets-17916476664.

AFA National Adviser Conference

DomaCom is a proud sponsor of the AFA National Adviser Conference that will take place in Cairns on 25th to 27th October 2015.

This year’s focus will be on Connecting Knowledge with Performance. The professional development curriculum specifically addresses the significant challenges and opportunities which advisers are currently facing. Advisers will showcase their best practice in plenary and the focus sessions.

You can find out more about the DomaCom fractional investing model at our stand, number 91. We look forward to meeting you there.

Which experts should clients engage when investing in property?


By Miriam Sandkuhler

Australians love property! Just as most people wouldn’t seek advice from friends about heart surgery if they weren’t a surgeon, it is important to realise that the same level of awareness should apply when investing hundreds of thousands of dollars in property.

It’s therefore also important as Advisors when working with your clients, that you help them to understanding that risk mitigation is factored into establishing a property portfolio and that engaging experts is part of the process.

Investors should think of property investing as a business – where their team of experts all form part of the success of that business. Independently, they help them to maximise the investment opportunity, minimise tax and/or risk, while collectively they combine their expertise to increase your success multi-fold.

If they were building a house, they would need expert advice to ensure the foundations, concrete, frame, bricks and mortar were sound and kept their house standing strong and upright. There would be significant consequences if they found out the concrete was too thin and the mortar too weak AFTER the house has been built! The same applies when engaging experts to help them in the property investing process. After they have purchased the property, it’s too late for these experts to help.

Miriam Graph

© As you can see in the chart,  clients need different experts to be engaged at different stages, and some of them need to be engaged simultaneously. The chart shows they will usually need nine professions to ensure their property transaction is sound – and all their experts will play a very important role.

As with any business, they should seek out the best experts available who specialise in working with investors to successfully build a portfolio.

Why? Because they need to step into the future with them and consider all of the implications – how big they want to build their portfolio, what type of properties they will buy, which strategies they will use and who will benefit financially and when – so that they can provide the correct advice, planning and structuring in advance.

Why in advance? Because after the purchase, it is TOO LATE!

About Miriam Sandkuhler

Some of the article content is extracted from the book Property Prosperity – 7 Steps to Buying Like an Expert by Miriam Sandkuhler © 2013, with the authors permission.

Miriam Sandkuhler is the founder of Property Mavens – a specialist property advisory firm based in Melbourne.  

Unlike most ‘Property Advisors’, Miriam is an Accredited Property Investment Advisor (PIAA), Licensed Estate Agent and REIV member and multi award nominated Buyer Agent, with 15 years of real estate experience in two States. She is also the author of the book Property Prosperity.

Miriam and her team excel at identifying high-performing property that deliver strong returns and stable tenants, while strategically building a client’s portfolio with high capital and income growth property. She has a strong track record helping investors and home buyers and believes education is the key to empowering people on their journey to achieving their goals.

In the media

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.

 

 

 

 

DomaCom Newsletter – June 2015

 

Anniversary of 1st bookbuilds

We’re excited to say we are approaching the anniversary of our first property bookbuilds in mid-August.  These were commenced in July 2014 under the auspices of financial planning firm Shartru Wealth Management.  Shartru have since introduced more than 40 clients to DomaCom’s innovative fractional property investing platform, purchasing several residential property investments through the Fund.

Reduction of minimum investment amount an advantage

We have updated the DomaCom Fund PDS to reflect a drop in the minimum initial investment from $20,000 to $2,500 to make it easier for more people to invest in a property. Please see our latest updated PDS on our website.

DomaCom’s investment process requires a 14 day cooling off period between making a cash deposit and committing to a property bookbuild.  During this time interest is paid based on the ANZ cash rate + .60%.  Currently the rate is 2.6%.  With this change to the PDS a deposit into the cash pool only requires $2,500.  The advantage to investors is they can secure an option to join a bookbuild without stumping up a large amount.  Any further contributions to the cash pool do not require a 14 cooling off period, which means they can tip in more money as soon as a property is identified.  For further details on cooling off period, please see our latest updated PDS on our website.

DomaCom Tax Statement is coming soon

The preparations for end of financial year is underway at DomaCom.  We are currently checking all the components involved and should be in a position to issue Tax Statements for each sub-fund by end of August 2015.

In the meantime, if you have any questions about our Tax Statement, please contact clientservices@domacom.com.au.

Alternative property types for fractional investment

Since launching DomaCom, a number of alternative property types have been listed on the platform for bookbuilds.  Among them are strata car parks, rural property, student accommodation, new developments, existing houses and small to medium commercial/retail properties including an office complex, a hotel and a KFC store.

The significance of these listings is that they offer varying levels of yield, capital growth or a balance of both, but the preference of the investors for one property type over another must also be considered.

One of the most interesting bookbuilds is a Southern Mallee Victorian property of 1,281 Ha, a $2m property with a long term lease.  This property offers a 5.1% yield. Farmland in the Mallee shows an historic growth of 7.2% p.a over 20 years (1990-2010).

Ettaro_Lvl1Office_v1_Small SouthernMalleeFarm_v1_Small

Gen Ys – a generation that knows what they want and how to get it!

It’s pretty well known that Australians love bricks and mortar.  It’s the “great Australian dream”.  With record low interest rates, property investment is an increasingly attractive option for building wealth.

But is it held in the same regard for Gen Ys?

The millennials are often referred to as precocious, demanding and rude, the ‘entitled generation’. But that may just be a by-product of the previous generations need to feel superior.  The war generation had an opinion of the baby boomers who had an opinion of the Gen Xers.  It’s a generational thing.

One certainty in relation to property is that for many, the price of property it seems has roared well ahead of their ability to get their foot on the ladder, and that is a concern.

However, what a recent survey has revealed may floor us.  Literally!

According to the Domain Consumer Insights Study, 16% of Gen Ys own two or more properties, compared to 17% of Baby Boomers and Gen Xs.  The study shows that younger generations are entering the market at an earlier age.  The average age that Gen Y Australians became  investment property owners is 25 years, whereas the average age for Gen X was 35 years and 45 years for the Baby Boomers.

So for the financial advice industry there is opportunity aplenty if they embrace the property asset class, specifically residential property, to help the clients of tomorrow who are showing early signs of strong interest in this sector.  It seems they prefer property rather than the equities market which is seen by many as risky.

It is worth noting that Gen Ys are by far the most tech savvy, which gives them the ability to access information, and they like participating online.

With many Gen Ys living at home with their parents for longer, delaying marriage and children until later, they are able to complete their higher education and seek life experiences such as travelling a lot earlier.  Naturally, living at home with parents has the significant benefit of allowing them to have sizable savings.

Despite government incentives to enter into home ownership, plenty of wised-up Gen Ys are buying investment properties as their first purchase.  And it makes so much sense!

From a cashflow and lifestyle point of view, it does seem like a win-win situation.  They have:

  • A home – they can continue living with their parents where they have the freedom to come and go (plus less cleaning, less cooking, less expenses); and
  • An investment property – where they get the tax benefits, and a purchase which requires less commitment than a home.

We shouldn’t underestimate Gen Ys.  They know what they want and are quick to work out how to get it.

If Gen Y are the next generation of financial planning clients and property is what they want then help them achieve it in the best possible way.  Be flexible enough to engage this demographic at their level and in the way they want, or get out of their way seems to be the message coming through.

Property advice

We have added a property advice page to our marketing site www.domacom.com.au to help you find a suitable buyer’s advocate or agent to take a brief from you to source suitable investment properties for your clients.

You’ll find some information about PIPA and PIAA, two industry bodies who represent professional buyers’ agents who will help you produce a property SOA for your client’s property investment.

Below each association you will find a list of members who are happy to assist you and your clients in this process.

The key things to look for in selecting a property adviser are: they do not sell stock, they are fee for service based, they are hold a QPIA or APA qualification from their respective membership and they also hold PI insurance.

KnowledgeMaster special offer for DomaCom Accredited Advisers

As an additional benefit for DomaCom Accredited Advisers, we are offering a complimentary e-book titled “A Practical Guide on How to Build a Referral Based Business” from Jim Prigg of KnowledgeMaster.

KnowledgeMaster offers a wide range of practice management manuals, so if you’re a DomaCom Accredited Adviser you can access these at a substantial 50% discount.  Click on the following link to access this offer:   http://www.knowledgemaster.com.au/domacom/.

DomaCom supports Positivity for Planners

Positivity for Planners is a campaign to re-educate the public about what financial planners do, with a focus on the positive side.  The campaign will spread genuine good-news-stories of financial advice using professionally produced materials such as videos, cartoons, podcasts and articles.

Your help and pledge to donate is needed to fund this campaign.  Organisers need to raise $100,000 in crowd funding donations to pay creative artists and buy ‘air time’ to give the campaign real impact.  If this target is not reached, you won’t pay a cent.

DomaCom is a proud supporter of Positivity for Planners.  Join us in supporting this good cause that will paint your industry in a more positive light.  Visit www.positivityforplanners.com.au for campaign details, who’s behind it and how to donate.

In the media

 

DISCLAIMER: DomaCom Australia Ltd ACN 153 951 770 is the holder of an Australian Financial Services Licence (AFSL) 444365 and is authorised to provide general financial product advice, to deal in certain financial products and to make a market in units in sub funds of the DomaCom Fund ARSN 167 020 626. Whilst DomaCom has taken all reasonable care to produce the information in this material, it does not make any representations in respect of, or warrant the accuracy, timeliness or completeness of any of the information. The information provided in this material is general information only. It does not constitute financial, tax or legal advice or a forecast. This information has been prepared without taking into account your personal objectives, financial situation or personal needs. Before acting on the information or deciding whether to acquire or hold a financial product, you should consider its appropriateness. It is recommended before making any investment decision, that you seek independent financial advice and read the relevant Product Disclosure Statement (PDS) and any Supplementary Product Disclosure Statement (SPDS) available on the DomaCom Ltd website, www.domacom.com.au , or by phoning 1300 365 930.