DomaCom Australia today announced the successful completion of a crowdfunding campaign to fund a mortgage-backed loan as the fractional property investment company looks to increase it funds under management (FUM) with these new debt facilities, particularly in the SMSF space.
Newcastle-based financial advice firm Shartru Wealth Management has used the DomaCom platform to acquire a $1.6 million residential property in Melbourne using both debt and equity.
The crowdfunding campaign raised around $682,000 for the equity component and another campaign raised the remaining $948,000 debt.
DomaCom chief executive Arthur Naoumidis said: “We are now looking forward to accelerating our FUM (funds under management) with these new debt facilities, particularly in the SMSF space.
“SMSFs can have a precise asset allocation to real property via DomaCom, including debt, without the need for a bare trust, limited borrowing and with all the additional administration and cost involved.”
Shartru offered a net return of 5.06 per cent in a low-risk environment, while the loan is secured by a first mortgage security on residential property with a loan-to-value ratio of about 60 per cent.
“Advisers can now fund both the equity and the debt portions of a property investment, which enables them to provide the appropriate investment outcomes for both accumulation and retiree clients,” Naoumidis said.
“With access to debt, advisers have an internal solution to help clients access investment property and fixed interest income in line with their portfolio strategy as part of their adviser’s fee for service.
“This is something DomaCom has been working towards for three years.”
