NDIS/SDA Properties - Too good to be true?

We already have the care providers there. It's just the investors not chasing ACT

 

He would have had to spend plenty just to convert. And it's the ongoing compliance when occupied that is way more expensive then the compliance to build.

 

Attached is the minimum cost to refurbish a property

No Stamp Duty or Land Tax Exemptions



But the payments above make it worthwhile still

 

By referring to the table of base price, if I built a 3 Bed+OOA House, but only 2 residents moved in with 1 bedroom left vacant, should the price of “House 2 Residents” or “House 3 Residents” apply? Thanks

 

It would depend on what you enrolled the property as. And you can change the enrolment later.

 

A little confused about SDA building classifications. Can any one shed some light on whether a purpose built 5 SDA apartment building in Sydney would be a group home or a class 3 apartment building?

 

Just to confirm, if I had an existing 2 bedroom apartment, I would need to spend a minimum of $570k on the refurbishment of a single unit to comply for the new build pricing? If I spend less, the apartment will only receive pricing from the existing stock table (app C)?

The difference is only $25k/year of income. Hardly seems worthwhile?

 

Existing stock is for previously enrolled properties. So you have to spend that or it's not eligible at all.

 

Hi RPI, great information in this thread. I am interested in investing in NDIS. Please contact me. Any recommendation for providers in SA? Thanks

 

Are maintenance costs above average in terms of percentage?

Who is responsible for all that technology?

 

The owner. When you are being paid $600/m2 for house and $900/m2 for unit in rent then the extra maintenance shouldn't be a concern.

 

30 years investing has taught me that when someone says an expense "shouldn't be a concern" I know I should be concerned.

Anyone here with knows that a certain percentage of rent is going to expenses. Normally around 20%.
Do you not keep track of expenses as a % of rent?

 

This only became possible in 1 July 2019, first builds were only completed in early 2020. So tracking is theoretical as far as repairs go.

After the wiring and stuff in the build that will never need replacing, you are looking at between $20k and $50k worth of gear extra for the whole place. So on a 3 bed house, take your $130k gross income, stick $10k in an account to allow for future breakdown and you'll still only be left with $80-$100k gross more than the property next door. Or be uber conservative and put $30k away and then only be left with $60-$80k gross more than the place next door.

 

Thanks for the reply.
So we still need to allocate at least 20 to 25% of rent for expenses.
And I doubt tech gear will not "ever" need be replacing.

Your footer links seem unrelated, so from what I can see you specialize in the property management and liason with builders to make sure specs are correct.
So what do I do if I was interested in building one of these houses?

 

I was saying the parts that don't need replacing. The wider doors, the wiring for the gear through the walls, the reinforcing above doors to take motors etc.

It's way more than property management, the compliance is insane. But close enough.

If you want to build something then find a provider who you want to work with. You can't claim the rent, must be by SDA provider who either owns or has long term control of property (lease).

 

Hi, I am new to this site, I am researching at the moment and looking into NDIS. I have read some of the threads with info. How to know which provider to trust is doing the right thing by the participants but at the same time also takes care of the investor's interests?

Do you know anything about the C o c o o n G r o u p >>> They seem to have been around for a year, only. There isn't much info out there. How do you do due diligence on a provider?
Thanks in advance for any input.

 

Let’s have a look ...

1 minute DD on cocoon group .

They have been around for more than a year. Their background is on their web site . At least they don’t appear to be coming from nras .

Unable to find out anything about anyone involved in the group , names etc so can’t do due diligence on them .

Looking at the list of properties they have available , the majority ( maybe all ) appear to be 5 bedroom .

Anyone who has spent any time looking at SDA knows that 5 bedders are not a great choice.

That they have lots of five bedders with 5 beds available is a concern but it could be that they are slow updating their site , or it could be that they’re not completed yet so tenants aren’t committing yet .

cliff

 

Unless they have changed they also try and have a related entity run support services. Third Line forcing - ACCC, NDIA and NDISQSC are on the warpath about this.