DomaCom poised to crowdfund mortgage backed loans

DomaCom poised to crowdfund mortgage backed loans
DomaCom poised to crowdfund mortgage backed loans

DomaCom Fund unit holders have approved the appointment of new trustee, Melbourne Securities Corporation, a professional trustee firm with extensive experience in fintech platforms and both debt and equity capital structures

The new trustee will pave the way for delivery of internal leverage and crowdfunding of mortgage backed loans.

New gearing capability is expected to be the catalyst for next phase of growth in FUM Fractional property investment company DomaCom (ASX:DCL).

The company is poised to introduce leverage throughout its product suite following unitholder approval today to appoint Melbourne Securities Corporation as the new Trustee of the DomaCom Fund.

DomaCom CEO Arthur Naoumidis said it opens up a significant pool of investors for DomaCom, by enabling them to incorporate debt when investing in property.

“This the final checkpoint in the approval process for DomaCom to introduce a range of new products underpinned by the ability to introduce gearing," he said.

Melbourne Securities Corporation CEO Matthew Fletcher suggested debt is integral to purchasing property.

“This will make property investment much more tax efficient for advisers and their clients, as well as reducing the amount of equity required to raise for each project.

"Given how integral debt is to purchasing property, this creates a really compelling proposition for investors and enables them to achieve a tax efficient outcome when investing in property through DomaCom.

“MSC is pleased to receive the endorsement from DomaCom Fund unitholders and is looking forward to working with DomaCom and its stakeholders.

"Complementing our trustee services to the traditional fund market, we believe in supporting innovative products such as DomaCom Fund which utilises exciting new technology to provide new and alternative investment options.”

Further Updates

DomaCom would also like to provide the following key updates:

• The Federal Court hearing on the SMSF related party/sole purpose test implications of the DomaCom Fund was held in Melbourne on 27th-28th November and we are awaiting the outcome.

• As per the AGM presentation, DomaCom is actively investigating options to shore up its capital position and will update the market around mid-December. Options being looked at include equity, debt and hybrid structures with the fall back being to revert to core operating costs.

To read more from DomaCom click here.

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Crowdfunding Domacom

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