Fractional property investment company, DomaCom has announced a new solution for ageing retirees which will include selling part of their home to help fund their retirement while continuing to live in their home.
Subject to the formal relief being granted by the Australian Securities and Investments Commission (ASIC), DomaCom’s Senior Equity Release (SER) product would be launched in the first quarter of 2018.
According to the company, its new product would be structured as a financial product for which a Product Disclosure Statement would be issued and would require a financial planner to provide advice for retirees wishing to participate.
Also, DomaCom said the new product may require obtaining more independent legal advice and other requirements which applied under the National Credit Act.
DomaCom’s chief executive, Arthur Naoumidis, said: “Many retirees are asset rich and cash poor, this product will enable them to unlock the value of their home while also giving them control and the ability to remain living in their home.
“Financial planners will now have a tool that they can use to manage the cash flow needs of retired clients as well as to facilitate innovative intergenerational wealth strategies using the family home.
“this is a key milestone for DomaCom, paving the way for a series of new products based on the equity release concept and with the potential to significantly build funds under management.”
