DomaCom is a unique platform that offers financial planners an alternative for their clients a unique to a direct property investment. It is an investment vehicle that “…provides a property investment that is as close to direct property ownership as possible” within a Managed investment Scheme. With the ability for a planner to create a Private Book build for their clients, having the right property advice in the property selection is very important and this is where Investor Advocate’s in depth knowledge of property investment, combined with is understanding of the DomaCom platform, assisted Shartru Wealth in successfully completing the 4 private book builds. Derek Beresford from Investor Advocate talks of the timing and process that they followed:
“Traditionally with property investment, once the decision has been made to invest, the next stage for the investor is selecting an investment that will work with their financial objectives. Selecting the right property to purchase needs to take into account their investment objectives, the prevailing market as well as where we are within the property cycle. Having a property advisor that will work with the advisor and their client find the right property is a critical step and should occur once all the pieces are in place and the client is ready to go.
A Private Book build within the DomaCom platform offers financial planners the opportunity to group their clients together and assist them with the property selection process. When a financial planner is looking to create a private book build, choosing property for investment needs to occur earlier in the process as time is needed to present the property and to keep as much control of the asset as possible during the book build process. During the planers accreditation process, the planner would already be considered their client base, their investment objectives and capacity to invest on DomaCom. It is at this point that the property advisory should be appointed to assist in the property identification process. Selecting a property that will meet the needs of a group of investors can take a bit more time. The Property Advisor can also assist with the preparation and presentation of the asset
Our work with assisting Shartru with their 4 private book builds, involved a review with the planners of their client overarching needs. It was established that income was the main driver that needed to be provided. They also wanted to limit groups to 8 participants within each property. When considering the amount that each client was looking to invest, it then gave us the budget. It was at this stage that we went out to the market to select an appropriate property and considered multiple asset classes as well as locations. It was determined that studio apartments leased for student accommodation provided a high yield with stability of income. Investor Advocate was able to secure a number of properties and worked with the vendor to be able to provide the time required for the planner to invest the client’s funds into the platform and complete the book builds.
It is Investor Advocates objectives to be part of the investment team. Working alongside the planner to provide the property advice and expertise for successful property investing. Our in depth understanding of the DomaCom platform can assist financial planners with the property selection and book building process.”