The Affordable Property Accelerator (RPA) program

Pitt Street Research recently reported on DomaCom’s continuing progress on new product releases.  

DomaCom recently revealed a new partnership with BlueCHP, a community housing provider specialising in the development and retention of affordable housing. The union is based on DCL’s Rental Property Accelerator product.

The DomaCom Affordable Property Accelerator (RPA) program worth $250m, formerly known as rent-to-own, will be used to allow investors to invest in affordable housing properties that will be managed by BlueCHP.

With help of the new products ability to use developer discounts, property investment will accelerate for investors and tenants alike.

Highlights

  • DomaCom and BlueCHP enter into agreement to deliver $250 million in affordable housing in 2021
  • BlueCHP is a Tier 1 Community Housing Provider (CHP) which will seek to access low-cost government housing loans via the National Housing Finance and Investment Corporation (NHFIC)
  • The project will deliver affordable housing for essential workers with a rental price 25% lower than market rents
  • The DomaCom Rental Property Accelerator product will access developer distribution discounts to deliver investor discounts and equity gifting to essential workers
  • Essential worker tenants will receive 5% equity in the property they are renting over the first 5 year

Watch Arthur Naoumidis talk with Proactive’s Andrew Scott about DomaCom’s synergy with BlueCHP.

Retirement Income Review report

In November last year, the Australian Treasurer released its Retirement Income Review report, which brought to light the dire need for focus on post-retirement income stream.

The report also emphasises the government’s downsizer contributions scheme which retirees can use to access their housing wealth. The scheme allow seniors who want to increase their retirement savings to make a tax-free contribution to their super using the money from the sale of their main residence. They can do this regardless of caps and restrictions that otherwise apply.

Seniors and investors can access the SER calculator and get further information via DomaCom’s Senior Equity Release (SER) or by calling 1300 365 930.

Shariah-compliant finance solution

Given the steady progress on the essential worker program and the Shariah-compliant finance solution, as well as the opportunity provided by the senior equity release offering, we reinstate our previous valuation of $0.30–0.40 per share based on the DCF approach.

Disclosure: Pitt Street Research directors own shares in Domacom Ltd.