Crowdfunder teams up with peer to peer lender
Crowdfunding property investment company Domacom and peer-to-peer lender ThinCats Australia are to set up a partnership in order to share lending and borrowing opportunities. Arthur Naoumidis, chief executive at DomaCom said the partnership would give investors the ability to be on either side of property transactions by creating leveraged book builds. These are typically aimed at investors looking for a way into the commercial or residential property markets, but with limited investable funds. DomaCom's intentions are clear: "This [deal] also provides the 350 lenders on the ThinCats' platform the opportunity to gain exposure to property assets and the ability to lend funds at an attractive interest rate with a lower risk profile," Naoumidis said. ThinCats chief executive Sunil Aranha said the link with DomaCom would allow the lenders on his website to gain exposure to both property and new loan opportunities. Naoumidis said the loans on the platform would have an initial loan to value ratio (LVR) of no more than 50 per cent. "The loan must be positively geared - that is, the rent must exceed the loan repayments and all other costs," he said. "The default rate for the fund borrowing the money is 3.5 per cent above the ANZ overnight cash rate - this currently equates to 5.25 per cent per annum."