Rural property is well regarded by Australians looking for a socially responsible investment with a reasonable return by way of income and capital appreciation.
We have created a Rural Property Strategy bookbuild based on the key features discussed below while we identify suitable rural properties.
Investors taking the Rural Property Strategy approach could benefit from the stronger buying power that comes with a cash purchase. It is therefore important to particulate in the crowdfunding campaign ahead of the property selection so we can be confident of an acquisition when a property comes to market. We will also be in a better position to acquire the property off-market.
With our Rural Property Strategy we may be in a position to acquire multiple properties and investing across multiple properties reduces concentration and tenant risk (failure to pay) that a single property investment may present. Rural property geographic risk in relation to natural occurrences such as drought, flood and fire is also reduced by being exposed to more than one property.
For as little as $2,500 per property, your funds in the DomaCom Cash account can be applied to the purchase of multiple properties within a Rural Property Strategy.
Key features of the Rural Property Strategy
- 2 to 3 rural properties, predominantly grazing properties but some may also have farming or cropping capacities. The first property we have identified is known as Doyles, a Victorian western district cattle property;
- target return of 9% p.a., comprising of approximately 5% from capital growth and approximately 4.0% to 4.5% from rental return; and
- commonly leased back to the vendor/s who may have had the property for generations.
We believe that such opportunities should provide an attractive return to investors whilst providing the farmers that participate in establishing a sub-fund within the DomaCom Fund with a much more sustainable business model that supports succession planning. By selling and leasing back the family farm, the farmers will not be burdened with debt or at least have debt relief (by selling a farm to the DomaCom Fund and paying out the debt from the proceeds of sale) and can use the released equity to support other activities such as fund the children to lease properties of their own whilst still retaining the operation of the family farm or improve the infrastructure on the properties (for example fencing and irrigation).
If you are interested in the Rural Property Strategy, you can join this crowdfunding campaign by completing the application and lodging your investment funds through this General Advice page.
Please ensure that you first read the DomaCom Fund’s Product Disclosure Statement (PDS). For a copy of the current PDS, please click here or call your financial adviser.
Once properties have been identified, you have lodged your bid and the campaign is filled, you will receive a Supplementary Product Disclosure Statements outlining the specific offer to invest in specific properties which will contain all information required for you to make a decision. You are not bound to proceed with your bid amount in the Rural Property Strategy campaign until you accept the offer contained in the Supplementary Product Disclosure Statement (which will include the specific details for the properties).
If you are new to DomaCom, click on the Apply button below to begin your application. If you are an existing DomaCom Fund investor, you can login to access your account and all the other public crowdfunding campaigns by clicking the Investor Login button below.