Darwin & NT SDA - Highest Location Factors (Multipliers)

Hi All

We have a waiting list of participants in the NT and in the about to be released SDA supply report from the Summer Foundation there is still no one intending to build there this year. Although it could be like us, we didn't have enough specifics to report that we were going into NT this year.

We have a couple of investors lined up, along with local builders so we are ready to start there this year and will be aiming for around the 50 dwellings if we can attract enough investors.

The NT has among the highest location factors in the country. Location factors are the multipliers used for the base SDA payment. Example below.

2 Bed House
Brisbane
HPS per Bedroom $41,833.42 (total $83,666.84)
Darwin
HPS per Bedroom $53,847.42 (total $107,694.84)

2 x 2 Bed Duplex (1 resident)
Brisbane
HPS per side $53,932.56 (total ~$108k)
Darwin
HPS per side $74,809.68 (total ~$150K)

Apartments
Brisbane
HPS 2 bed 1 Resident approved for 1 bed $86,375.90 (4 unit total ~$345k)
HPS 2 Bed 1 Resident approved for 2 Bed $107,472.55 (4 unit total ~$430k)

Darwin
HPS Unit 2 bed 1 Resident approved for 1 bed $122,740.70 (4 unit total ~$491k)
2 Bed 1 Resident approved for 2 Bed $153,855.44 (4 unit total ~$615k)

So whilst the building costs can be higher than Brisbane, the returns are much greater. We have been successful in Cairns and Townsville which has returns in the middle of the two so expect same here.

 

If you go absolute beachfront Airlie Beach then definitely. Yes it's higher but not extortionate

 

Thanks for sharing with us this information and this thread really changed my concept of investing in SDA.
Can you share with us more information regarding:

1, How much for a duplex to be built in NT
2, How much will be the land cost for each duplex.

If possible, I would go forward with you guys to NT if it is within my range financially.

 

Hi RPI,
How have you found the projected build cost for cyclone coded dwellings in the NT compared to other states? Will you be relying on local providers for managing the dwellings? The market for decent providers in Darwin is quite thin
Cheers
PP

 

Still finalising those. [email protected] can keep you up to date.

 

We are in Cairns and Townsville and Airlie Beach. It's still dearer in Darwin.

There is no way we could be compliant and use someone else to manage. We will have full time staff on the ground there.

 

Hi RPI,

Is the idea that you are looking for investors and need more investors purchasing these types of properties? I'm from Darwin so always have an interest there, though the market has been rough up there for a while (until recently). What exactly is the investment here? Is it into a scheme that you run so you can build or is it into purchasing one of the properties that you are trying to arrange to be built for participants?

Would love more info as it does sound very interesting.

 

Hi. In an ideal world I would have zero involvement in the design and construction and people would bring us quality properties to manage. Unfortunately most of the stuff being designed and built is just plain rubbish, it just doesn't work, although meets the standards.

So, we have 3 in house architects and 2 project managers at the moment, even though we don't engage builder. Investors find their own block of land (or we can get someone to do it) and we ok the location, we design it and do BA level plans, do specifications etc. Then introduce to a builder who can build it. The builder pays us during the build as consultants because we pay for all the plans and assessments etc. We work with one electrical automation company that the builder uses instead of their own - this is the most complex bit and we have developed a lot of IP around this.

Then to claim for SDA we have to have a long lease on title. This can either be like normal, most commonly around 8% of development cost. Or the best for investors is the flow through lease, that is they get the income less expenses and management fee. This is usually at least double the percentage on a gross basis, but then you wear the risk of vacancy etc.

So while we are not in the business of selling, we have investors from listed funds, overseas financial institutions who we have helped develop tens of millions of property to investors who develop one property.

 

Hi,

I am interested in investing in a SDA home in NT.

I have a decent deposit and currently undergoing my finance pre-approval.

Is there anyone that I can get in touch with to discuss potential opportunities?

Thank you!

 

[email protected] Brett

 

We have builders sorted and are going to start in Darwin in a decent volume now. Love some locals to invest.

 

Are these still available?

 

We have a great builder in Darwin. And have more capacity for people to build there.

 

What are the multipliers in

Can you please share how the numbers look like in Victoria?
Do you have any stock to sell there?
Or are there high-demand areas?

 

Hi Jane.

There is demand in most places. What is not in demand is poorly built minimum standard stuff in the outer new estates.

 

Hi just wanted to know is anyone building SDA properties in Darwin? is there demand ?

 

See OP

cliff

 

Yes NDISP is building several. No individuals yet but 2 funds we work with Social Impact Funds has an NT fund now. Glendower Asset Management has one in the wings.