
Most read
‘Optimistic borrowers’ could endanger housing market, RBA says...
‘Optimistic borrowers’ could endanger housing market, RBA says...

Latest Podcast
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...

Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Invest
Understanding property crowdfunding
The Australian government has recently passed legislation to allow Australians to organise and participate in equity crowdfunding, a popular method for investors overseas to access property, however another crowdfunding model for this asset class also exists – so what are the differences?

Understanding property crowdfunding
The Australian government has recently passed legislation to allow Australians to organise and participate in equity crowdfunding, a popular method for investors overseas to access property, however another crowdfunding model for this asset class also exists – so what are the differences?

According Arthur Naoumidis, the chief executive of fractional property investment company DomaCom, crowdfunding should be viewed as a form of syndication in which “people can pool together to raise money for something”.
Until recently there was only one legal model under which a syndication platform could be established, Mr Naoumidis said, but the changes to the law will make a second crowdfunding model available to the general Australian market.
“The thing you’ve got to understand is that there are two types; what’s called ‘transactional’ crowdfunding, and then there’s fund manager based ones,” he said.
There are a number of differences between these two structures, Mr Naoumidis said, as each uses different legal structures and are beholden to different regulations.
Mr Naoumidis’ DomaCom uses the managed fund structure, meaning the business is registered as a managed investment scheme, is available to everyday Australians and is subject to all the same rules and restrictions as other managed investment schemes.
“You need a product disclosure statement, you need a sub-product disclosure statement, you need all these things about how to raise money, and that’s the rule set we operate in,” Mr Naoumidis explained.
“We’re like the separately managed account version of a real-estate investment trust.”
Under this model, individual investors select the specific properties they’d like to invest in rather than pooling their money with their peers – the way equity crowdfunding in the property space works.
The equity crowdfunding, or ‘transactional’, model has investors put their money into either a proprietary or proprietary limited company that owns the underlying property portfolio, Mr Naoumidis said.
“In other words, you get shares in a company and that company owns the property,” he said.
Mr Naoumidis predicts this latter model will prove popular with investors looking to access the property development market, with the managed fund model likely to be more popular among those looking to hold the property rather than do it up and sell it on (though the latter model can still be used for developments as well).

Property
Policy failures see houses become unattainable for young Australians, minister says
Australia’s booming house prices are the result of the government’s failed policies, with the younger generation now unable to afford what their parents could, a minister has said. ...Read more

Property
House prices to grow by 25% over 3 years
New research is predicting a large gain in property prices of around 25 per cent through to the end of 2023, driven mainly by low interest rates. ...Read more

Property
Strict cap on short-term rentals delayed following criticism
Following widespread criticism from councils and online rental companies, the introduction of NSW’s planned holiday rental code of conduct has been pushed back by three months. ...Read more

Property
Melbourne becomes Australia’s 2nd most affordable rental market
While most capital cities saw house rents soar to new record highs over the first quarter of 2021, Melbourne continued to lag behind – becoming the second most affordable capital city to rent in Aus...Read more

Property
Why home buyers are now more open to high-priced properties
Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown. ...Read more

Property
Government brushes aside RBA’s debt blowout warning
The government said it is not concerned about the RBA’s warning that the financial system could be rocked if there’s a debt blowout, in fact it is “very pleased” that confidence levels are lea...Read more

Property
Have first home buyers been pushed out of the market?
Latest figures have shown a monthly decline of over 3 per cent in first home buyer activity, but levels still remain at their highest since 2009. ...Read more

Property
‘Optimistic borrowers’ could endanger housing market, RBA says
The Reserve Bank of Australia has issued a caution, noting that optimistic borrowers could lead to a deterioration in the quality of lending, increasing the risk in the housing market. ...Read more

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

The continued property boom, ethical investing and engaging with your super fund
Listen now

Property
Policy failures see houses become unattainable for young Australians, minister says
Australia’s booming house prices are the result of the government’s failed policies, with the younger generation now unable to afford what their parents could, a minister has said. ...Read more

Property
House prices to grow by 25% over 3 years
New research is predicting a large gain in property prices of around 25 per cent through to the end of 2023, driven mainly by low interest rates. ...Read more

Property
Strict cap on short-term rentals delayed following criticism
Following widespread criticism from councils and online rental companies, the introduction of NSW’s planned holiday rental code of conduct has been pushed back by three months. ...Read more

Property
Melbourne becomes Australia’s 2nd most affordable rental market
While most capital cities saw house rents soar to new record highs over the first quarter of 2021, Melbourne continued to lag behind – becoming the second most affordable capital city to rent in Aus...Read more

Property
Why home buyers are now more open to high-priced properties
Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown. ...Read more

Property
Government brushes aside RBA’s debt blowout warning
The government said it is not concerned about the RBA’s warning that the financial system could be rocked if there’s a debt blowout, in fact it is “very pleased” that confidence levels are lea...Read more

Property
Have first home buyers been pushed out of the market?
Latest figures have shown a monthly decline of over 3 per cent in first home buyer activity, but levels still remain at their highest since 2009. ...Read more

Property
‘Optimistic borrowers’ could endanger housing market, RBA says
The Reserve Bank of Australia has issued a caution, noting that optimistic borrowers could lead to a deterioration in the quality of lending, increasing the risk in the housing market. ...Read more