Nothing in DomaComs statement overcomes the Federal Treasurers...

Nothing in DomaComs statement overcomes the Federal Treasurers ban on Managed investment Trust holding residential property ( except for affordable housing).

Geared or not a new Trustee cannot overcome this ban unless the rules change. IMO even after the new Trustee is appointed the PDS will have to inform investors that the Domacom Platform cannot apply to new Residential Properties within the DomaCom Fund unless they contain affordable housing and are managed by a community housing board and are rented as such for the first 3 years.

The difficulty posed by gearing these investments is yet another matter. Given these Mortgage funds will attract a mortgage interest rate of 5% plus to the investor, plus X% to DomaCom, plus Rates Repairs and other outgoings its likely that at a 50% gearing all of residential sub funds will be cash flow negative at a 2-3% gross rental return, requiring unit holders to tip in cash every year.

Domacom might be better to advise the market how they intend to address all of these matters rather than alerting us to " gearing up for a new product suite". It might be more pragmatic if they concerned themselves with fixing the only chair in the corner before buying another lounge suit.