Domacom’s Senior Equity Release downsizer is now confirmed by the ATO, upping the shares more than 9% (to 6 cents) and have doubled since the close on August 7. This means Self-managed super fund (SMSF) retireescan dispose of part of their home under DomaCom’s Senior Equity Release platform and be eligible to make a downsizer contribution.
Read more about Senior Equity Release
Better for retirees
DomaCom CEO Arthur Naoumidis said: “The ability for retirees to help themselves by modifying their personal balance sheets and moving some of their financial resources tied up in their home to their super will enable them to enjoy a better retirement.
“For investors, DomaCom’s Senior Equity Release delivers 3% income plus capital growth and may suit SMSF’s in accumulation mode as well as institutions seeking reliable long-term income and growth.”
From July 1, 2018, eligible people aged 65 or over have been able to make a downsizer contribution into their superannuation of up to A$300,000 from the proceeds of selling all or part of their home. The contributions are not subject to the usual contribution caps.
The ongoing pandemic has increased pressure on retirees who are seeing their retirement incomes substantially decreased due to the reduction in investment returns especially substantially lower interest and dividend yields.
Recent government initiatives such as Jobkeeper and Jobseeker have not been of benefit to self-funded retirees. Allowing them to too up their funds by using their own resources is a measure which can be delivered without impacting the budget.