Business News

DomaCom launches gen X, gen Y property product

Fractional property provider DomaCom has unveiled a low-cost SMSF property product in response to increasing demand from generations X and Y to access the property market.

In launching the Property SMSF, DomaCom has partnered with the Self-Managed Super Institute, CST Corporate Solutions and Evolv Super Audits to enable fund establishment, administration and an audit function to be included in the property offering, which will be available to SMSF trustees from 1 July.

Fees for the Property SMSF will be capped at the greater of $450 or 1 per cent per year on the condition the SMSF portfolio invests in no other assets outside of cash and DomaCom property sub-funds.

DomaCom chief executive Arthur Naoumidis said he believed younger generations were struggling to get their foot on the property ladder because purchasing property might be beyond them or they might not be ready for the commitment.

“The Property SMSF will get them started and, combined with a SMSF, help set them up for financial independence,” Naoumidis said.

The product would help advisers seed their practice with future clients, particularly young people who were not regarded as viable clients from a fee perspective, DomaCom said.

Such clients could be cultivated in a DomaCom Property SMSF until they could become full-paying clients with balanced portfolios, it said.

“The introducing adviser has full discretion to determine when they want to manage the client. This enables them to focus on higher-value clients whilst their future clients begin to mature,” Naoumidis said.

The convenience of online investment selection, administration and auditing offered by DomaCom and its partners meant young investors could begin to acquire property from as little as $20,000, the company said.

Copyright © SMS Magazine 2024

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital