La Trobe Financial has provided a $50 million facility to DomaCom, which it said will allow investors to acquire $100 million of leveraged property through the investment platform’s Fund.
The facility has the aim to allow up to 60 per cent leverage for investors and self-managed super funds (SMSFs).
DomaCom added that enabling the use of lending when purchasing investment properties is a key addition to its product offering, placing the company in a strong position to almost triple its funds under management to $150 million.
“This is a significant development for the Australian property investment market as financial advisers can now leverage their clients’ investment properties at the click of a button,” Arthur Naoumidis, CEO, DomaCom said.
“We’re delighted to have the final piece of the jigsaw in place for DomaCom – we have bought over 50 properties to date where almost all are without debt and we are excited to be able to offer advisers ready access to competitive SMSF lending.”
Mr Naoumidis added that the firm is now well placed to take its platform to financial advisers and the SMSF sector.
Chris Andrews, chief investment officer, La Trobe Financial, commented: “As a specialist in the SMSF lending space since 2009, we are happy to partner with DomaCom to assist borrowers obtain that much needed SMSF finance for property investment purposes.
“With more than one million Australians having turned to taking more control of their own super, the growth of the SMSF sector continues.”
Mr Andrews noted that SMSFs have a significant influence in the overall growth of the Australian superannuation industry, with SMSF assets growing by $319.7 billion or 55 per cent in the five years to December 2018 at $726.4 billion in assets under management.
“So with this in mind, we can expect this sector to continue to have an important role in asset allocation debates in the retirement industry,” he said.
“The majority of the 587,092 SMSFs are formed by self-employed business people who are astute and understand investment risk – having often run their own businesses.
“They have a bias towards asset classes with low volatility and assets that have longer term (ten years or more) investment horizons and, to this end, property is eminently recognisable and understandable for SMSF investors.”
He added that there limited recourse borrowings is only $42.8 billion or 5.9 per cent of total SMSF assets.
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