Hi, I'm new and looking for NDIS property opportunities

Hi,
Just joined this group after reading several threads mainly about NDIS investing.

I have just finished watching a long video on NDISInvesting.com.au, which looked interesting. The bottom of their web page had several contacts, one in particular being [email protected].

So, then I Googled reviews of debtfreepainlessly.com.au and saw yet another thread on here about "Mortgage Mirroring and Offset Amplification" which also mentioned debtfreepainlessly.com.au and some "considered opinions"......

Go figure....

BUT, what I really want to do is to investigate more about NDIS investing, without hitting the possible sharks out there.

Anyone have any recent experience, negative or positive?

Thanks in advance,
Old_surfer

 

Hi. I'm one of the largest SDA providers in the country. (we currently have 217 either completed or underway, will be multiples of that next year).

My advice is look hard first, as so many are former NRAS sales people who think they are on the next big thing and way too focused on sales commissions then actually helping people and through the 20 year management (or longer).

Stay away from anything above 3 residents in one house.

Units and villas are great.

Robust is also great - we have 52 residents waiting on the Sunshine Coast alone.

There is almost no true High Physical Support properties out there. Make sure they far exceed the LHA and SDA specifications and include automated doors, blinds, lights and A/C etc that can be controlled by voice, phone, tablet or button etc.

Hard to find anything complete to sell, though we do have some newly completed Fully Accessible villas in Toowoomba at $520k each. Returns $49k ish. Can be upgraded to high physical support in future to up the returns.

 

Ps. Sales is not what we are about. We are here for the long term management. Good example is those Villas. We don't make any commission on those sales, but the guy selling them will build some more for us to rent out. Really are about getting as many people into great places as possible.

 

Tried the link but it didnt work.

 

Kevin and Disability Homes sell our stuff. He's a good guy and while we work closely together, he doesn't sell anyone else etc. But they are not part of NDISP.

 

With a return around $49k, will the compliance costs be a similar percentage as a higher value proposition or does the compliance cost not vary too much in dollar terms regardless of if you are talking about the lower end of the spectrum or the higher end?
ie. is it $10k compliance for the villa's returning $49k and around $10k compliance costs for a high physical support house returning $100k?

 

The difference is a Villa you need one tenant to return that. The house would be at least $800k to be High Physical Support. And you need 3 tenants in there to return the $100k. Our fees are based on rent (10 plus GST).

 

The numbers make sense to do this with current interest rates, and at the lower entry levels barriers to entry for everyday Joe are reasonably low. Why wouldn't everybody jump at this?

 

Most lenders are only lender 60% of val. Although we are getting vals on to be constructed stuff well above cost, house and land vals are $1.02 - $1.05 m . Our apartments are about $850k each plus GST in complexes of 4 - 6

 

@geoffw and @RPI many thanks for your comments and links, I will certainly investigate further. I really like the underlying ethics of helping people who are in these situations that are totally inappropriate and this provides them with a much better outlook for their lives.

 

@RPI, in your experience, would a lender lend to a semi-retiree on the minimum 60% LVR? Would the lender take into account the income generated by the investment or would they expect the investor to have additional income to support the loan? I.E. Is the investment looked upon favourably by most lenders as a good source of income? I ask this as the link provided describes the minimum investment is $800k.

 

We definitely have clients who have gotten loans that relied on the income and have done so at 50 or 60%. But it would be up to the individual lenders

 

I'm a bit unclear about how the vals on these 3 bed sharehouses work out. From what you've said previously, the initial valuation come in well under the build cost (so a house that costs $800k house and land may be valued at say $600k for pre-approval).

But it seems at some point, the valuation suddenly switches to be well over 100% of the build cost.

What would be the trigger for this significant swing - is this related to the actual signing of tenancy leases which makes it a different proposition for the banks?

Do you have an example of any banks specifically who have valued properties at that $1m+ level? And are these generally commercial loans, or is that just for the multi-unit developments?

I'm very interested in the concept but it seems to require a fair leap of faith that the end val will work out to that level.

 

Our values come in well OVER construction cost currently. But the banks will only lend you 50-60% of val. so $800k houses are being valued off the plan at $1.02m-$1.05m at moment.

Once built it's that the major banks will lend to you, most don't for the construction.

 

Hey RPI

Would they look at finance once constructed in the situation where under normal circumstances and with the changes in finance a couple of years ago , you wouldn't qualify for finance ? Finance would be in a trust fund

Cliff