Newly listed online property group Domain has struck a new agreement to market its property listings and offer its property research on ASX-listed fractional investment company DomaCom’s crowdfunding platform.
Crowdfunders can use the research to select the right properties to invest in and use Domain’s listing platform to buy and sell properties.
After a campaign starts, DomaCom’s crowdfunding platform will also facilitate independent due diligence for the selected property.
“This is a significant new integration for DomaCom that will be critical in taking property crowdfunding into the mainstream,” DomaCom chief executive Arthur Naoumidis said.
“The highly regarded, proprietary crowdfunding campaign technology the DomaCom platform brings, combined with Domain’s extensive property listing data will enable Gen Y and Millennials to get on the property ladder by crowdfunding a property of their choice with their friends or family.
“Additionally, this innovation will give property owners access to the new crowdfunding revolution simply by listing their properties on Domain and at the same time open up a vast new pool of potential investors to the DomaCom platform.”
There is fierce competition among fractional investment vehicles such as DomaCom and its competitors in an effort to grab market share.
BrickX recently secured investment from the Westpac-backed venture capital firm Reinventure and a new player, CoVESTA, has also launched.
Late last year DomaCom introduced crowdfunding for mortgage-backed loans. Mum and dad lenders will be able to crowdfund lending to other mum and dad borrowers through DomaCom.
This facility is expected to kick off at the end of January.
“It opens up a significant pool of investors to us, by enabling them to incorporate debt when investing in property,” Mr Naoumidis said.