Seniors Equity Release
Seniors Equity Release allows you to sell a percentage of your property to an investor via the DomaCom Fund in return for a lump sum or a staggered payment plan that can be used for any purpose, whilst retaining title to your property and lifetime occupancy.
For information regarding Downsizer Contributions please click here.
Webcast: How downsizing fits into a Retirement Income strategy
Register now for the live webcast!
Thursday, 22 October | 11am AEST | Duration: 90 minutes
Funding sources for Senior Australians to meet Aged Care Needs
Downsize
Significant transaction and relocation costs
Agent fees, conveyancing, stamp duty
Lifestyle impact of relocating
Family, friend, familiar surroundings
Reverse Mortgage
Not well funded
Availability subject to the liquidity of lending markets
Minimal lifestyle impact
Seniors do not need to relocate
Uncertainty about residual equity
What will be left for the estate
Home Reversion Scheme
Limited institutional funding
Only one bank provides this
Restricted postcodes in limited capital cities
Mainly Sydney and Melbourne
Uncertainty of residual equity
What will be left of the estate
Government Pension Loan Scheme
No lump sum available
Limited payments
Equal or less than pension payments
DomaCom Senior Equity Release
Well funded
SMSFs via the DomaCom Fund
Attractive income yield PLUS capital growth
Minimal lifestyle impact
Seniors do not need to relocate
Progressive sale of equity
Provide lump sum or regular payments and fees
Fixed costs
DomaCom’s Equity Release – an elegant solution where the time horizons of both the Investors and the Seniors are more closely aligned.
*Sources: APRA Statistics. Deloitte, Dynamics of the Australian Superannuation System: The next 20 years 2013-2033
Financial Advisers
DomaCom’s Senior Equity Release (SER) is a financial product you can use to engage and connect your senior aged clients seeking equity release from their home with your investment clients seeking exposure to residential property.
Investors receive a fixed rental income and a share of the capital value of the property as independently valued, and in proportion with their investment.
Seniors can opt to receive a lump sum or a regular payment as suits their needs and by agreement have a permanent right of abode. Their home remains theirs to live in or rent out and when it is sold they receive the residual sale price at the same time investors receive their share of the proceeds.
Only Seniors Equity Release
DomaCom is the only Senior Equity Release that is a financial product which means you can charge a fee to advise on it. Senior Australians interested in this product must have adviser sign-off so there is a significant market opportunity.
Accreditation
It is an ASIC requirement that advisers need to be accredited to advise on fractional property investment and senior equity release. Successful completion through Mentor Education Group attracts CPD points.
For further information or register go to Enrol Now
Property Vendors
DomaCom’s Seniors Equity Release enables you to sell a percentage of your home to one or more investors in return for a lump sum or a regular payment to supplement your income. By agreement, you retain the title and have a permanent right of abode until such time as you decide to sell your home. You can also opt to rent out your home and retain 100% of the rental income.
Because you are selling a percentage you will have to pay rent on that percentage of ownership to the investors but to make it easy DomaCom will purchase a little more of your house to cover the rent and any fees for the next 5 years and pay the rent to your investors on your behalf. In 5 years’ time, another partial sale will occur to pay investors and fees for the next 5 years and so on. This means you never have to worry about paying the rent.
There are several benefits for seniors who prefer to stay in place but release some equity from their home.
– You can access cash in two ways, a lump sum or what we call a staggering settlement. This is a regular monthly payment of an amount you choose with the added flexibility to change it when you need extra for that unexpected expense.
– Maintenance, repairs and building insurance costs on your home are shared with the investors in proportion to their investment.
– You have a permanent right of abode and the ability to rent out your home and retain the rent.
– With this fixed cost model, you can predict the amount of equity that will remain in your home for estate planning purposes.
There are no restrictions on where your home is located so equity release can occur anywhere provided investors can be found. These may be family or friends, self-managed superannuation funds or unrelated parties.
Full details are contained in the Product Disclosure Statement.
Advice
It is an ASIC requirement that property vendors receive advice from a DomaCom Senior Equity Release Accredited Adviser. If you do not have a financial adviser to undertake accreditation, DomaCom can refer you to an accredited adviser.
Expression of Interest
Investors
Seniors Equity Release is an opportunity for investors to choose residential properties in locations that interest them and invest in return for a fixed rental income of 3% and a proportional share of the capital value of the property.
The key benefits of investing in residential property in this way include the ability to spread your allocation to residential property across multiple properties in different geographic locations to achieve diversification.
The minimum investment is $2,500.
Rental income is assured with long term owner/tenants in place. DomaCom oversees the property to ensure it is well maintained and to exit you can trade your units online at any time, or wait until the property is sold.
Your interest is held in a sub-fund of the DomaCom Fund and the sub-fund holds a caveat over the property to the extent of the equity release.
Full details are contained in the Product Disclosure Statement.
Disclaimer
Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as an indication only. They are neither a quote nor a pre-qualification for a Senior Equity Release product. The results from this calculator are based upon the information you enter into the calculator and are an approximate guide only. They do not constitute specialist advice. The results from this calculator should not be relied upon for the purposes of entering into any legal or financial commitments. Users should seek appropriate independent professional advice prior to relying on, or entering into any commitment based on any results generated by the calculator.
