DCL 0.00% 1.1¢ domacom limited

Mayafushi, your comments do reveal a basic misunderstanding of...

  1. 3 Posts.
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    Mayafushi, your comments do reveal a basic misunderstanding of how DomaCom gets properties onto its platform and how the subsequent pricing works. Call me or email me and I would be happy to explain in as much detail as you'd like. And if you look carefully at my name on here you will probably recognise that I DO know quite a bit about it! I don't hide behind an anonymous name - you will quickly work out who I am!
    DomaCom in almost every instance does NOT select the properties - it is individual syndicates put together by families or financial planning firms who select the property they have selected to invest in. DomaCom does appropriate Due Diligence on EVERY asset on the platform prior to acquisition and thereafter does at a minimum annual valuations. 
    DomaCom is not and never will be about selecting properties - it is a platform that democratises the process of acquiring properties that investors want to acquire a fraction of.
    As with ANY property acquisition, there are significant acquisition costs, most notably government stamp duty and in the early year/s this will detract from the capital performance of the property - just as it does with any property when purchased. A million dollar property with $70k ($60k of which would be stamp duty in Victoria) of acquisition costs, will not be magically valued at $1.07 million after settlement!!
    Also, be aware that every property on the platform has tenants in place, paying rent, and quite apart from any movement in the capital price of an asset, investors do receive regular distributions of net rental income.
    There are plenty of properties on the platform which are now valued well in excess of their original purchase price. One for example I have an interest in has most recently been valued at 20% above the purchase price - and this valuation, like most, are quite conservative - being around 5% lower than several other apartments for sale in the same complex. This reflects that the valuations are merely an opinion at the time of the valuer appraising it - it is not a FIXED price and buyers nor sellers have any obligation to transact at the calculated unit price.


 
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