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DomaCom Australia completes crowdfunding of first mortgage backed loan

The company's shares are trading about 8% higher intra-day, at 7 cents.
crowfunding representation
The DomaCom platform offers expanded opportunities for investors

DomaCom Australia Ltd (ASX:DCL) has successfully completed the crowdfunding campaign to fund its first mortgage backed loan.

The company's online platform provides an opportunity for investors to invest in residential and commercial property across Australia through the fractional acquisition of units in a trust.

Newcastle based financial advice firm Shartru Wealth Management used the DomaCom platform to acquire a $1.6 million residential property in Melbourne using both debt and equity.

Internal gearing to deliver long-term returns

The crowdfunding campaign was completed to raise about $682,000 for the equity component and another campaign was completed to raise the remaining $948,000 debt.

DomaCom chief executive officer Arthur Naoumidis explained that one of the great benefits of property investment is to be able to use internal gearing to deliver long-term tax effective returns.

Naoumidis said: “We are pleased we can now facilitate debt arrangements via the DomaCom platform, offering expanded opportunities for investors.

“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.

“With a managed fund like DomaCom and 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 the adviser’s fee for service.”

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