DomaCom Family and Friends campaign allows you to invest in one or more properties with your family, friends, or other investors.
This is a great way to share an investment and spread the risk. By creating a family and friends syndicate in DomaCom you may be able to acquire multiple properties. And by diversifying you further reduce the risk and enhance profits by investing in different property types and geographic locations.
For example, why not look at our Top Australian Suburbs Strategy to co-invest in campaigns that use institutional research as well as qualified buyers advocates to identify properties in suburbs that are projected to deliver the best return over a 10-year horizon.
How does a Family and Friends campaign work?
Login to DomaCom platform
Find & select the property
Click on Find A Property in the platform to browse through our diverse range of properties available before selecting the right property for your group of family and friends. To select the property that is of interest to you and your group of family and friends, simply click on the Start A Campaign red button of that property. You will then see a Campaign Type drop down menu, one of which is Family and Friends.
After you have selected your chosen property, you can invite your group individually to join your private campaign/syndication and make a pledge (i.e. how much they would like to invest in the property). Alternatively, you can share the campaign on social media to attract other investors.
If you need help to select the property, DomaCom can introduce you to an independent professional Buyers Agent who will not only find the right property but assist you to negotiate the price or represent you at the auction.
Make a pledge
Each individual investor within your group may make a pledge (i.e. how much they would like to invest in the property) towards the prospective campaign as an expression of interest so that you can determine whether your campaign has any likelihood to complete.
At this stage pledges are just an indication of your interest to invest in the property and there has not been any financial commitment.
Fund your pledges
If you and your friends wish to proceed with an actual crowdfunding campaign you will need to fund your pledge by opening an account in DomaCom. As with all property acquisitions it’s important to have your funding in place before selecting a property to invest in. In DomaCom this requires all parties to:
- Review the DomaCom Fund Product Disclosure Statement; and
- Complete an application and deposit the amount you wish to invest in the DomaCom Cash Pool.
Please note that cash deposits earn interest (currently 2.08%) while you decide on a suitable property. Cash deposits have a 14 day cooling off period before they can be applied to a campaign.
As pledges are being made, DomaCom begins the due diligence process.
- At 30% of the target amount, DomaCom engages a conveyancer; and
- At 50% of the target amount, DomaCom engages a valuer to provide a formal valuation and a property inspector to look over the property to ensure it is in good order.
Purchase & settlement
When all parties have funded their pledges and the campaign is filled, you will also receive a Supplementary Product Disclosure Statement (SPDS) outlining the specific offer to invest in the property of your choice which will contain all the information required for you to make a decision. You are not bound to proceed with your pledge amount for the chosen property until you accept the offer contained in the SPDS (which will include the specific details for the properties).
DomaCom itself does not charge any fees during the purchase process, however there will be fees associated with buying the property. Conveyancing fees, a property inspection fee, a buyers agent fee and stamp duty are all costs which will be shared by all investors in proportion to the amount they invest. These fees will be detailed before purchase in the SPDS which will need to be accepted and signed by you in order to proceed.
Finally, after the property is purchased, a sub-fund for your group’s chosen property will be created and you will be issued units in proportion to the amount you invested the sub-fund.
Enjoy ongoing return
Every month all profit after expenses will be distributed to all the unit holders. Please note that DomaCom charges an annual management fee of 0.88% (incl.GST) for the property sub-funds.
If you are new to DomaCom, click on the Sign Up button to begin your journey.
If you are an existing DomaCom Fund investor, you can login to access your account and view all the properties and other public crowdfunding campaigns by clicking the Login to DomaCom button.