DomaCom housing project targets retiring Baby Boomers
DomaCom has signed an agreement with property developer Akuna Lifestyle Estates to build a resort-style residential estate aimed at Baby Boomers moving into retirement that have less than expected superannuation savings.
The project, the Akuna Residential Land Lease Community (RLLC), would be developed and sold in eight stages over three to four years from this year and would see residents paying rent of around $175 a week with the additional potential to qualify for Federal Government Rental Assistance of up to $65 a week.
DomaCom would use its property investment platform to offer yield to investors for acquisition and development of land. Chief executive, Arthur Naoumidis said the regional Victoria-based project was well-suited to the company’s fractional investment model as it allowed for investors from public and private sources for as low as $2,500.
“This project signals the start of our potential to provide a funding model for affordable housing across Australia whilst giving investors new investment opportunities with good yields and capital growth in socially responsible projects,” he 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.”
A $6 million capital raising comprising of $1.65 million to acquire land and $4.35 million for development planning would include approval for construction of civil works and facilities for residents, including a pool, bowling green, and sports centre.
Akuna Lifestyle Estates founding director, Graeme Jacobs said the RLCC would provide a more transparent option away from the conventional retirement village alternative.
“Many are retiring with low superannuation balances, with the equity in their current home being their largest asset. 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,” Jacobs said.
“Under our 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.
“[Our] target market is growing at 30 per cent per year, with a third of Australians estimated to be over 55 within a generation.”
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