DomaCom Australia Ltd (ASX:DCL) has added 40 new NDIS-supported properties across Australia to its portfolio, increasing the company’s funds under management to $114 million.
The NDIS is the Australian Government’s disability support scheme, which includes a subsidised housing program for those with disabilities.
According to DomaCom, this positive social impact aspect is attracting attention from a cohort of investors looking to include assets with direct social value in their portfolios.
The company supports these sorts of investments through a fractional investment model based on a syndicated structure which allows investors to diversify across multiple properties in different locations with a base investment of $1,000.
These new investments have been led by ASR Wealth Advisers (ASRW), who are looking to create the option for social impact investment without missing out on possible returns of 8% to 14%.
ESG retail investment
“Our mission was to create an investment opportunity that fits within the ESG realm,” ASRW head of property Khaled El-Katateny said.
“These days, more investors are conscious of the effect their investments have. We have managed to create a product here that our clients can be proud of, whilst achieving above-market returns.
“Utilising the fractional model has the added benefit of spreading investment risk by providing diversification and passive income for our clients, whilst opening up a variety of other opportunities, not usually available to retail investors.”
Annual funding for NDIS services is around $24 billion, with wait times for a home approval generally taking 1-2 years. There is a lengthy wait list with an expectation of high future demand.
About DomaCom
DomaCom Australia owns and operates a fractional investment platform that provides real solutions for SMSFs, retirees and new home buyers.
The company’s proprietary platform allows Australians to invest in almost any asset class, empowering them to create diversified portfolios with comparatively lower minimum investments and competitive cost structures.
DomaCom runs a crowdfunding campaign process in which investors can commit as much as they want towards the purchase of assets together with other like-minded investors.