Seniors Equity Release (SER) Explained

Seniors, this news is for you: DomaCom recently released a new scheme that will be beneficial to all Australians aged 65 and older. It’s called the Seniors Equity Release (SER) and is the first of its kind in the country.

What is SER?

SER is a financial product that allows seniors to sell a percentage of their properties’ equity to investors through DomaCom and get a lump sum or a regular payment plan in return. However, they will still be able to retain occupancy and the title for the properties.

Once their homes are sold, seniors will receive the residual sale price and the investors will receive their part of the proceeds at the same time. 

“The company’s Senior Equity Release is the first financial product in this space that gives financial advisors the ability to provide valuable options to asset rich and cash poor senior Australians by enabling them to sell a portion of their property,” DomaCom CEO Arthur Naoumidis said.

“There are now over 3.8 million Australians over the age of 65, many of whom will be seeking to unlock their home equity and transition towards retirement living … With the number of Australians over 65 growing each year, we believe that the launch of our SER product puts financial advisers and DomaCom in an unmatched position to service retirees with this significant long-term growth opportunity,” Naoumidis added.

How is SER beneficial to seniors?

Most Australian seniors have had the opportunity to invest in profitable properties, which are now skyrocketing in market prices. But despite owning valuable homes, and with no outstanding mortgage, retirement is not so favourable. This is largely due to the lower retirement income along with the increasing cost of living in Australia.

That’s why most of the retirees today are in difficult situations. Their poor cash flow just can’t keep up with their way of living. Here is where SER can help your seniors. DomaCom’s new financial scheme can help provide them with much-needed cash by allowing interested investors to purchase a percentage of your seniors’ high-value properties.

With SER, seniors can set an asking price for a part of their home’s equity and request either a lump-sum payment or monthly installments depending on their needs. The Senior Equity Release will help your seniors augment their poor retirement incomes and make use of their idle assets.

Are there fees when using SER?

Yes, there are. If the seniors in your family decide to sell a share of their properties through the Senior Equity Release scheme, they are required to pay 1.4% annually. The homeowners will also have to pay ‘rent’ to the investors for the part of the properties they sold.

Aside from these, both the homeowners and the investors will share proportional maintenance of the property.

Can DomaCom’s SER be a good solution for seniors?

The Senior Equity Release will provide Australian seniors with a great option when choosing a financial product to help them get by, especially when their retirement incomes will not suffice.

If you want to know more about the DomaCom’s Senior Equity Release scheme, you can call us or send an enquiry online. Talk to us and discover this new funding source for Australian seniors.

Adviser Help

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.