FYI | Feb 13 2019
This story features DOMACOM LIMITED. For more info SHARE ANALYSIS: DCL
By Pitt Street Research
Revolutionary property investment platform
We believe today’s property investing in Australia is archaic and ripe for disruption. Property investors can essentially only acquire entire properties, e.g. in their SMSF, or buy units in property funds without any influence on the investment strategy.
DomaCom Limited ((DCL)) has developed two fully regulated financial products that we believe can revolutionize property investing in Australia.
DCL operates property investment platforms that enable investors to invest in fractions of properties rather than having to buy an entire property. Additionally, the company’s Equity Release product enables “asset rich/cash poor” home owners to release some of the capital locked up in their family homes without needing to downsize.
Own part of a property with Fractional Investing
Fractional Investing is ideally suited to property investors looking to diversify investment portfolios across multiple properties, or for people with limited investment funds available that are looking for exposure to the property market and first home buyers.
DCL recently cleared all regulatory hurdles for this product and hopes to have the final building block in place shortly, i.e. debt funding to introduce leverage to the property investments on its books.
Equity Release: Ideal for the “asset rich/cash poor”
DCL’s Equity Release product will formally launch in the next two months and is primarily targeted at Baby Boomers looking to release capital from their unencumbered homes, helping them to fund their retirement and for inter-generational wealth management.
Strong take up expected by financial advisers
Given that DCL essentially adds another, important, asset class to financial advisers’ advisory tool box, we expect both products will garner very strong interest once fully launched. The company is targeting the investment property segment of the SMSF market, valued at $700bn in total. Additionally, DCL has its sights set on first home buyers and the market for retiree homes worth around $500bn.
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Earlier today the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here: https://www.fnarena.com/index.php/pitt-street-research/DCL/
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