Fractional property investment firm DomaCom has launched an equity release product for retirees alongside an accreditation course for financial advisers seeking to engage with the new market.
The Senior Equity Release (SER) product will be issued as a financial product rather than a credit or real estate product, enabling financial planners to advise seniors over the age of 60 who are looking to release equity in their home.
Domacom chief executive Arthur Naoumidis said: “Senior Equity Release is the first financial product in this space that will give financial advisers a significant place at the table in a growing and vulnerable sector that in many cases is asset rich and cash poor. Hence accreditation is crucial and the first group of advisers will be going through that over the next few days.”
The company said the new product would enable advisers to connect their senior-aged clients with wealth accumulation clients such as SMSFs, allowing both to benefit from similar time frames according to their respective needs.
It added there would be no postcode restrictions for properties under the SER, allowing anyone to get equity release as long as there was corresponding interest from investors.
While not imposing postcode restrictions was an obvious benefit to seniors interested in an equity release, it said it would also be of benefit to potential investors, allowing them to further diversify their portfolios by investing in properties across several jurisdictions.
Naoumidis predicted family and friends would be most likely to purchase equity in properties under the product and may use their super to purchase equity.
The launch follows DomaCom being given the green light for the product by the Australian Securities and Investments Commission in November last year.