Benefits of Fractional Property Investing with DomaCom
The DomaCom Fund is an ASIC registered Managed Investment Scheme (MIS) that allows you to invest in one or more properties of your choice via a syndicate-like/fractional investment structure. This means the DomaCom Fund enables you to choose a property of your choice rather than have a fund manger select the underlying properties for you in in a pooled manged fund.
Once you have chosen the property/properties and how much you wish to invest, your accredited DomaCom financial adviser will liaise with us to provide instructions for the Fund to buy on your behalf. It really is that simple!
Minimum investment is $1,000.
Whilst each individual sub-fund only contains a single asset, the fractional model enables you to create a diversified property portfolio through the ability to invest in multiple sub-funds across a number of different asset types.
- You can purchase between 1% – 100% of units in a property sub-fund.
- Access to investments across multiple property types; rental yields and locations.
- Access to Special Opportunities discrete non-property investments.
You can invest in ALL Australian property types. It’s your choice!
- You can choose areas you are familiar with or have a particular preference for.
You can choose different types of property: Residential, Commercial, Industrial, Retail and/or Rural.
The Fund is registered with the Australian Securities and Investments Commission (ASIC) and is backed by the following professional organisations:
- Melbourne Securities Corporation Ltd (MSC) is a professional trustee firm, licensed by ASIC under Australian Financial Services License No.428289. MSC has been appointed as Trustee of the DomaCom Fund to represent and act in the interest of investors, provide regulatory compliance oversight as legislated by the Corporations Act 2001 and in reference to ASIC guidelines.
- Perpetual Corporate Trust Ltd (Perpetual) has been appointed as the Fund’s Custodian. The Custodian of the Fund has bestowed the role of holding the title for each property.
While there are no withdrawal rights from a sub-fund until it is terminated, the DomaCom Fund introduces a solution not previously available to the property sector.
- You can sell some or all of your units in a sub-fund through the Fund’s secondary market facility provided there is a buyer for your units.
- Other liquidity options are the Fund’s Constitution 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 issued and/or after the initial term with a 50% unit holder vote.
The DomaCom Fund has a competitive cost structure, with the added benefits of greater flexibility and control.
The Fund’s annual management fees are 0.22% p.a. in relation to Cash held in your cash account and between 0.44% and 0.88% p.a. of the gross value of your investment in the Sub-Fund depending on the nature of the underlying asset.
Please note there are additional costs associated with the purchase and ongoing maintenance of the property.
Why not boost your return for Cash via the Fund’s Cash pool?
- Earn a generous margin over the ANZ daily cash rate for all cash invested in the Cash pool, currently around 0.38% net yield.
- You also receive the pure return on your property, i.e. yield (rent) plus capital value.
An investment in the DomaCom Fund is subject to investment risks. Please refer to the Fund’s Product Disclosure Statement (PDS) and any relevant Supplementary Product Disclosure Statement (SPDS) for a full explanation on these.
The DomaCom Fund Work?
Each property held in the Domacom Fund is segregated into an individual sub-fund.
The syndicate for each property sub-fund is created via an online crowdfunding campaign process initiated by your DomaCom-authorised financial adviser.
As the fund’s investment manager, DomaCom outsources the conveyancing, property valuation and inspection functions, and the appointment of a buyer’s agent to purchase the property.
Once a crowdfunding campaign process is fully funded and the property is purchased, a sub-fund in the Fund is created to ‘hold’ the property.
- You receive units in the sub-fund based on your investment.
- You receive a share of the ongoing rent and the future capital value of the property.
- The property title is held by the Custodian of the Fund on behalf of the unitholders. The services of Perpetual Corporate Trust RE Services are provided by Perpetual Trust Services Limited ABN 48 000 142 049 AFSL No. 236648.
DomaCom Secondary Market Facility
DomaCom also has the secondary market facility where you can sell your units if a corresponding buyer of your Units can be found.