Using “Lazy” money – you are able to put towards an investment property
It turns out that a significant number of clients have ‘lazy’ money that is looking for a home. That is, they have funds which they wanted to invest in property but do not have enough to buy a property outright. In such cases, it’s possible to purchase a share of a property rather than the whole property using DomaCom, Australia’s leading ‘fractional investment’ board. Fractional Investing simply means each client invests what they can afford and they then purchase as a group rather than as individuals.
It only took eight clients to buy a property Coburg just outside of the Melbourne CBD. The property was so attractive, each client signed immediately with DomaCom to invest a collective total of $475,000 ( = the purchase price plus 8% extra to meet out-of-pocket costs). DomaCom provided a full Product Disclosure Statement and processed each person’s investment under their general AFSL license.
The client’s funds were then invested into individual cash accounts at @ 0.6% above the cash rate so they generated a good return whilst the construction moved to completion
The whole process was very simple and straightforward
No complex structures involved – so easy to understand
No borrowings were used in this case but DomaCom would allow borrowings of up to 60% of the purchase value if they were needed
These investors wanted to generate income so the potential cash yield of up to 3.2% pa + capital gains was particularly attractive.
The fees and outlays involved were as follows:
No up-front or extra fees were involved over and above the usual costs which apply when buying a property.
Once the funds were raised, DomaCom had the property valued, entered into the purchase contract with the vendor and a 10% deposit was paid.
If 100% of the funds had not been raised all monies would have been returned to the investors in full with interest. No penalty fees would have applied.
At settlement the balance of purchase price was be paid and out-of-pocket costs met e.g. stamp duty, solicitor’s fees, conveyancing fees etc. Any funds left over were returned to the investors with interest.
DomaCom charged a listing fee of 0.88% pa of the total value of the property.
Standard rental management fees will apply @ 7% of the gross rental
After settlement investors now have the option of holding their share of the property for 5 years at which point the property will be sold unless 75% of them elect to hold for a further 5 years.
The investors are able to sell all or part of their investment at any time as the DomaCom model allows for a ‘liquidity market’ to be formed.
Value of Shares in the property is reflected in the annual valuations DomaCom do as part of their listing service.
Total outgoings should be in the order of $7,912pa in which case the net cash return to investors would be 3.2% pa
It is very simple:
there are no ‘hidden fees’,
investors have a direct ownership of the property via the DomaCom trust structure,
they can invest whatever amount they can afford or are comfortable with,
the investment maturity is fixed but can be extended,
even if the investors decided to borrow to invest in this property there would have been no individual borrowings for them to worry about as all DomaCom properties are cash flow positive and the lenders loan against the property only (have no charge against the investors).
NOW YOU CAN BUY A SHARE OF THIS EXCELLENT QUEENSLAND PROPERTY FOR AS LITTLE AS $10,000
Omnia Group has mirrored this investment and have sourced a property listing for Lot 124 Marshall Cct, Coomera, which is exclusively listed for our clients – investment details are below:
Purchase price $540,440
Rental Appraisal is $470 to $490 per week from MPM Property and Sales Management
Camelot of Amity, where location really matters
Camelot of Amity is a master planned residential community in the heart of the booming Northern Gold Coast growth corridor hotspot Coomera.
Surrounded by green parklands, close to schools, the highly anticipated Coomera Town Centre and the Coomera Marine Precinct, Camelot of Amity is sited for lifestyle today and sound investment tomorrow.
Contact Omnia Group and secure your perfect piece of paradise in this brand-new estate.
Close to planned 60ha Coomera Town Centre
Multi-million dollar transport hub housing the Coomera Train Station
Close proximity to Coomera Marine Precinct
Easy access to the natural wonders of South Stradbroke Island, Coomera River and Gold Coast Broadwater
30 minutes to Brisbane CBD
Close proximity to local TAFE, shops, services and M1
If this investment sparks your interest, please contact us today and we will set up a consultation with David for you.
Kristy Thomas email@example.com Omnia Group 0407 266 354
IMPORTANT NOTE: Omnia is licensed to sell real estate and is not a licensed provider of credit, financial planning advice, tax advice or investment planning advice nor does not hold itself up to be a specialist in any of these areas INCLUDING THE DOMACOM STRUCTURE. Any comments made above are of a general nature only and should not be used as any form of specific advice that might influence your decision to act in any way. Any such decisions should only be made with advice from a licensed credit provider or appropriately licensed financial adviser or tax accountant.Omnia Property Ltd Pty Licence Number 4026312 Omnia Group Pty Ltd ABN 51 602 417 612