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

I would also be careful as Metricon have also now heavily invested in building SDA housing. I would expect there will at some point be an oversupply in certain areas and not as easy to rent as they make out.

 

Metricon build terrible SDA that is not fit for purpose, they meet minimum standard but you just can't build that way in this space. You actually need to have spent significant time with people with a disability. Very little decent SDA is being built

 

Hi Cliff
We have clients that are using commercial loans based on the income.

 

From what I have heard they are using quality fit outs. Of course they wont be prefect but I doubt many builder's in this area are building quality as you state. My point is oversupply. Metricon and many more builders getting involved in SDA.

 

It's not the fitout.

They build to minimum size. And so its not actually big enough for a proper High Physical Support person to use. I'm a provider who only makes a return with tenants in there and I have zero concern with supply.

 

Not the case. We do 80% lvr on both established product and also land and construction. The Dept has never been busier.

Cheers


Richard

 

Hello qld surfer, did you decide to invest or what? Interested to know as we need to do something like this too! thanks Mo

 

I heard that commercial lenders have now pulled out of this market

 

We have commercial loans going through constantly. Just had a non disclosure come through from one now so they could see our lease. Majors need something extra for construction of small unit compelxes but most of not all happy to lend on completion

 

Hi Old Surfer - how did you get on with your investigations into SDA / NDIS? I'm looking through the same gauntlet now with view to setting up in a SMSF.

 

Hi Mo,
Nothing yet, still not convinced but open to be. I was expecting one SDA Agent to contact me this new year, but have not heard anything. That was mainly around some sort of trust partnership between 1 or more SMSFs. He promised to have something but I have not heard. The reason I was looking at a trust partnership is that I don't want to invest the $800k that is expected, on average - prefer something a little less and share the risk.
Old_Surfer

 

Hi Michael,
Please see my reply to MO...
Old_Surfer

 

Other option would be to joint venture between self and SMSF . We bought a commercial property like this a while ago and now super funds can build , they just can’t borrow to do it .

cliff

 

Trust partnership = No such thing.

A fixed unit trust may give each SMSF a fixed % of entitlement. But often that creates issues as it might prevent the property as loan security or to borrow. The unitholder rights could also be a concern in some instances too. The SDA agent isnt able to advise on this and its illegal (Corporations Act and regulations penalties) for them to do so. Super is a financial product and a AFSL is required. The structural issue is a complex legal matter. There are various ways this can be structured and yes borrowing to construct might even be allowed just not in the conventional manner. A ungeared unit trust could be used and a human unitholder could borrow against other property. The SMSF uses cash. The borrower neg gears and the SMSF positive gears at a low tax rate.

 

@RPI are you saying that lenders will typically lend you 60% of the valuation, not 60% of the contract price? So, for a $650k land & build contract, if an independent valuation prior to construction came in at $800k they would lend you 60% of $800k, not 60% of $650k?

 

There are lenders doing that. There are lenders who aren't doing anything.

Private lenders better in most cases. But it's a mixed bag