DomaCom to crowdfund The Block

03-Aug-2016

By Darin Tyson-Chan

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Fractional property investment specialist DomaCom has revealed it has reached an agreement to crowdfund the renovated properties of the reality television show The Block.

“I have always been a great fan of The Block and allowing viewers the opportunity to actually invest in one of the apartments will bring another dimension to this acclaimed program,” DomaCom chief executive Arthur Naoumidis said.

“Viewers will be able to use DomaCom’s platform as an investment vehicle in one or more of the apartments, effectively vastly widening the net of those viewers who can be involved at this level.

“In the past, the apartments were auctioned at the completion of the renovation, so to be involved was clearly beyond the resources of the vast majority of viewers.

“But now they can have an investment stake that doesn’t bet the farm.”

DomaCom’s crowdfunding activity will allow viewers of The Block to invest in the show’s apartments for as little as $2500.

The process means participants will become part of an online crowdfunding property book-build that will create a syndicate.

To invest, individuals have to open an online account with DomaCom and then transfer the amount they wish to invest into it.

DomaCom will then prepare and issue formal documents and prepare to bid at the end-of-show auction, provided the exercise raises enough money.

If its auction bid is successful, the fractional investment firm will appoint a property manager to arrange tenancy for the apartment and each investor will receive a share of any future capital growth and the rental income generated.

The firm’s platform will allow investors to sell their share in the property at any time.

The reality television show begins later this month with contestants renovating a heritage-listed building in Ingles Street, Port Melbourne.

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