I agree with Dontonbri about easier and cheaper access to...

I agree with Dontonbri about easier and cheaper access to property investment ( IMO) potentially.

I am still trying to get a handle on some of Domacom's product offerings, does anyone have a handle on the following:

With the La Tobe facility being offered (as I recall) at 6.99 % pa to investors on a non recourse basis on 60% LVR and the property investment needing to be in a positive cash flow position. IMO I don't think this presents as a very good value proposition. Does anyone understand if negative gearing is applicable to this sort of transaction and how does a residential property returning Hypothetically 2-3% show much of a returm ( IMO). A working example of how this operated would be good.

Equally the Domacom SER seems ( IMO) also to be difficult for the borrower ; In that it the Domacom SER seeks to recover a rate of return for third party investors and in addition receive equity in the property. Seems to me that the borrower has lost his capital gain ( by selling his equity) and is still paying interest as well under the Domacom SER ( IMO) . Doesn't a reverse mortgage save half of that cost by only receiving the interest on the borrowing and the borrower not loosing his equity and capital gain( IMO), which may have ( to some degree) offset the interest.

Also IMO I am a bit confused about the position of a SMSF purchasing a property to house their children. How much of the trust can the SMSF own. Can the SMSF purchase the property with intention of the children of the parental SMSF reside in the property to get them on the property ladder.

Still waiting for Frugs to come back with something on a working model.