What is ESG Investing?

ESG, or Environmental, Social and (corporate) Governance investing is a strategy to diversify your portfolio more ethically, and are central to the investment mandates of most major global fund managers – and a key discussion point around company board rooms.

The ESG ethos is holding companies and they way they operate to a higher standard through a certain set of criteria. Thus, ESG investors are not solely concerned with a return on their investment, but more so with good corporate behaviour and the impact on the environments, stakeholders and the planet.

ESG investing strategies are far from new, with roots back as far as to the 1960’s. However, these strategies gained attention again in relation to the Covid-19 pandemic, when ESG conscious companies were proven less volatile than others in an unstable market.

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What is land banking?

Land banking is a property market scheme used by real estate investors and involves identifying and buying undeveloped land from land banking companies, to increase its value over time through holding, rezoning and developing. Common procedures in land banking includes dividing the land up into smaller lots and offering to various investors.

For an investor, the objective is to purchase the plot of land for the current low price and hold it while it’s being developed and increase in value. This occurs through many different stages of capital growth e.g. when the population/housing demand sees rezoning occur,  creating new suburbs, roads and infrastructure. By purchasing plots of land at a low, pre-development price and holding blocks of land has helped many developers make big profits in a rising market once it’s been developed.

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Maximising the opportunity in property investment

If rising residential property prices are a concern, the fractional investment model might have a risk mitigation strategy you haven’t thought of, even if you own a property.

Alternatively, if you’re trying to get a foothold on the property ladder or a place to live, the fractional model can work just as well.

Syndication is the heart of the fractional model.

If you’re looking to buy a place to live you can  fractionalise it by putting in what you can afford and having investors fill the balance. If that sits a little uncomfortably with you think of it this way. When you buy a house with a mortgage, you have a co-owner, a bank or building society for example becomes your co-owner, and they hold the title until you pay off the debt.

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DomaCom’s Adviser Update

In this edition we recap on a couple of earlier “wins” for investors, to remind advisers how DomaCom works in relation to Sole Purpose where a residential property investment is made by a SMSF, and the Downsizer legislation that allows home equity to be used to top up super

DomaCom’s advice based seniors home equity release, Australia’s first financial product of its type, is a door to a cohort of potential new clients and a valuable addition to intergenerational planning

We also highlight a selection of investment opportunities

An exciting partnership with Crescent Finance that will involve new business potential for licensed and DomaCom Accredited advisers

Download the full PDF here

The Benefits of Diversification When Investing

In investment strategy the term diversification means to spread your funds across various financial instruments. This is a common approach to manage the risk levels of capital loss to your investment portfolio and reach your investment goals.

As different asset classes and segments perform well at different times, this fractional investment model is one of the key principles to ensure you won’t lose all your money if one sector or asset class fails to perform at a certain time – If you put all your money in stocks for example, you risk losing everything if the stock market crashes. Effectively, by not “putting all your eggs in the same basket” you won’t rely upon a single investment for all of your returns. The tactic simply aims to maximise returns safely by investing in assets that would react differently to a market event.

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The Affordable Property Accelerator (RPA) program

Pitt Street Research recently reported on DomaCom’s continuing progress on new product releases.  

DomaCom recently revealed a new partnership with BlueCHP, a community housing provider specialising in the development and retention of affordable housing. The union is based on DCL’s Rental Property Accelerator product.

The DomaCom Affordable Property Accelerator (RPA) program worth $250m, formerly known as rent-to-own, will be used to allow investors to invest in affordable housing properties that will be managed by BlueCHP.

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DomaCom develops key product to drive future revenue

The September quarter saw four new core product developed by DomaCom, all with a focus on the AustAgri transaction; Rental Property Accelerator, Essential Worker, Equity Mortgage, and Senior Equity Release.

Chief executive officer Arthur Naoumidis said: “The September quarter has positioned the company with several very prospective transactions that could transform the outlook of the company going forward.

“If successful, the AustAgri transaction will add $300 FUM and significant cash flow which would place the company in a stable cash position and in sight of being cash flow positive.

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Downsizer Contributions Explained

We all look forward to a comfortable and secure retirement. However, building a financial cushion that will fund our golden years is not easy for everyone. Planning for your retirement begins with thinking about your retirement goals and what you must do to meet them.

In Australia, seniors who want to increase their retirement savings can now make a tax-free contribution to their super using the money from the sale of their main residence. They can do this regardless of caps and restrictions that otherwise apply. Take a look at the potential benefits, eligibility rules, and other things that individuals need to be informed of if they plan to make downsizer contributions.

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Developers Rental Property Accelerator Explained

Rental Property Accelerator is a model like no other, an opportunity for investors and tenants to share in a property and leverage off DomaCom’s unique fractional investment platform, a modern form of syndication where ownership can be shared to present a pathway to ownership for renters and secure tenancy for investors.

Developer Opportunities

For developers, the Rental Property Accelerator model can lead to multiple sales to a demographic that is struggling to get into the property market, build confidence and facilitate intergenerational investment opportunities within families.

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Seniors Equity Release (SER) Explained

Seniors, this news is for you: DomaCom recently released a new scheme that will be beneficial to all Australians aged 65 and older. It’s called the Seniors Equity Release (SER) and is the first of its kind in the country.

What is SER?

SER is a financial product that allows seniors to sell a percentage of their properties’ equity to investors through DomaCom and get a lump sum or a regular payment plan in return. However, they will still be able to retain occupancy and the title for the properties.

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