Fractional property investing group DomaCom will launch a self managed superannuation fund (SMSF) pitched at low-net worth investors using DomaCom Property sub-funds as the main investments.
DomaCom will partner with Self-Managed Super Institute, SMSF document provider CST Corporate Solutions and Evolv Super Audits to establish and run the fund
The SMSF will cost the greater of $450 or one per cent per annum as long as investments are restricted to cash or the DomaCom funds with investors able to enter the fund with $20,000. Fees will increase in the event that asset allocation spreads to include equities and fixed interest.
DomaCom chief executive Arthur Naoumidis said the SMSF was being launched to meet demand for property investments from those with low super account balances, particularly among Gen X and Gen Y investors.
“I believe younger generations are struggling to get their foot on the property ladder. It may be that purchasing an entire property is a bit beyond them or a commitment they’re just not ready to make. The Property SMSF will get them started and, combined with a SMSF, help set them up for financial independence,” Naoumidis said.
“DomaCom see the Property SMSF as a superannuation nursery for young people who are not viable clients from a fee perspective. These future clients can be cultivated in the DomaCom Property SMSF until they have 'grown’ into full fare paying clients with more balanced portfolios at which time they are transferred back to the (adivser’s) practice.”
The SMSF will be live from 1 July with advisers planning to use the fund requiring to be accredited by DomaCom.