DomaCom unveils new retirement development

04-Jul-2017

By Sarah Kendell

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Fractional property investment group DomaCom has partnered with Akuna Lifestyle Estates to launch a new crowdfunded retirement community in regional Victoria.

In a statement, the group said the new project would be developed and sold in eight stages over several years, with the first phase to be offered on the DomaCom platform this year.

Speaking about the deal, Akuna founding director Graeme Jacobs said the development would offer an affordable living option that would suit the needs of many baby boomer retirees.

“Under our new scheme there are no exit fees, with any future house sale only subject to the normal residential sales commission fee of 2.5 per cent; there are no refurbishment fees or other costs imposed on the residents, with residents getting all proceeds from the sale of their houses,” Jacobs said.

“Residents only pay a weekly rental fee that covers all the maintenance of the community’s common areas and full use of the clubhouse, bowling green, swimming pool and gym, as well as council rates, sewerage and water rates.”

DomaCom will conduct an initial capital raising of $6 million to secure funds for the land acquisition, development planning, approvals and construction.

“This Cobram housing community will give investors the opportunity to secure high-yielding returns from the development and land rental activities in an exciting project that will deliver a real social objective – giving retirees affordable housing,” Jacobs said.

He added the development would target low-income retirees who qualified for government rental assistance, a market that was currently growing at 30 per cent a year.

“What is often forgotten is that many Australians are retiring with low superannuation balances, with the equity in their current home being their largest asset,” he said.

“Under our proposal, Akuna will develop the land and then sell the homes with 49-year leases at an average price of $265,000 per house.”

Cobram was chosen as the development site because of its proximity to hospitals and healthcare centres, retailers and recreational facilities, with the developers looking to build further communities in other nearby towns.

DomaCom chief executive Arthur Naoumidis said the project underlined the group’s potential to provide an affordable housing model while giving investors new opportunities with good yields and capital growth.

“Projects with a social conscience are important to many investors,” Naoumidis said.

“Crowdfunding enables this to happen across a number of investments with only a small asset allocation to each, so investors can feel good about their investment without going over the top.”

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