NDIS SDA Robust - Positive Cash Flow Land Banking

Discussion in 'NRAS & NDIS SDA' started by RPI, 10th Aug, 2020.

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  1. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Proper Robust Level Properties under the NDIS should mostly be located on acreage or semi-acreage lots.

    A Robust duplex costs about $600k to build, a triplex $800k or $1.15 for a quad. or $1.7m for a 6. You get about $55k a side a year with a long waiting list of clients. (so $110k, $165k, $220k or $330k gross)

    So you could buy a larger lot, site the property to allow for future subdivision and get some decent cash flow while you did.

    Most lenders will have harder time understanding Robust then they do with normal SDA. So not going to be getting high LVR's.
     
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  2. Rooky

    Rooky Well-Known Member

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    What is "Proper Robust Level Properties" ?
     
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  3. Anjohn

    Anjohn Well-Known Member

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    Do you have a recommended location for building Robust on acreage lots in NSW regional area?
     
  4. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Ones that are fit for purpose, not just designed to meet standards.
     
  5. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Northern Rivers we have demand now. Central Coast and Hunter as well.
     
  6. timthetoolman

    timthetoolman Member

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    My business of local small builders through Qld and Vic have been working on a robust spec for some property spruiker and it took us about 3 months to put together so it wasn't easy. The figures these blokes are talking about are absolutely amazing and they're going to be building hopefully around 60-homes through northern Victoria over the next few years. They're very protective of what they're doing obviously but it isn't for the faint hearted but I think they're going to clean up
     
  7. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Most of the property spruikers have no relationships with providers and design not fit for purpose (but meets the specs) places.

    If it is Robust homes (as opposed to Villas) I'd be very nervous with that number being built. Robust clients don't share well.

    I hope I'm wrong, I like good news stories about SDA. But so many spruikers and ex NRAS guys and those with no relationships are building utter crap. Especially in Robust and High Phys.
     
  8. timthetoolman

    timthetoolman Member

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    This particular company who asked us to provide the spec were not onselling but a private group who were building quite a number through a certain regional area to keep and maintain themselves it actually turns out, so I was erroneous when I mentioned they were a spruiker.
    I think they must have a fair idea they know what they're doing and I was relieved to find out they were doing this and not onselling which makes us feel a lot better!
    Dealing with spruikers in this NDIS field is something I haven't experienced but we are dealing with some SDA groups for specific homes and on a few occasions I've had to personally deal direct with an NDIS recipient who feels they're getting treated badly by a builder or SDA provider. It's become a bit of a wormhole to be honest
     
  9. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Like any government scheme, there are many in this space who see dollar signs rather than in for the right reasons. There are many SDA providers who were registered under the old NDIA model who are in for a terrible shock with the NDIS Quality and Safeguards registration and compliance process.
     
  10. DBD

    DBD Active Member

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    Could you find 4-6 Robust participants who are all willing to live in the same location? It sounds like there are a very low proportion of SDA participants who are approved for Robust funding... although it is hard to get an idea of indicative numbers - there doesn't seem to be any concrete data available showing what proportion of SDA approvals each category makes up.

    Maybe these participants are willing to move further afield due to the dearth of available properties.

    Any particular areas where there would be this kind of high demand for single occupancy Robust properties?
     
  11. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Robust is going to be the highest number of participants. Low approvals because there is no where to go. We have 35 people approved for SDA Robust on the Sunshine Coast alone waiting for us to build Robust.

    They don't live together, they live close but are separated.

    16 of ours are placed in their residences under order, as in they have to remain there.
     
  12. DBD

    DBD Active Member

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    Interesting, that is more than I would have expected. So you're saying they would approve more people for Robust funding if there was enough housing to put them in?

    Presumably these participants sign up on long leases then, 5 years minimum?
     
  13. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Participants can leave with 60 days notice. But we offer 10 year leases to our participants. It's all choice and control but the participants themselves are more concerned that they will lose their place and it will be returned to normal use.

    Definitely more would be approved if suitable housing, they just don't bother applying when nothing suitable around
     
  14. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    And the lease for the owner is with the SDA provider - long term . 10 years minimum normally.
     
  15. Brian Patel

    Brian Patel New Member

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    @RPI, I'm interested in building "Robust" duplex/dual key in Ipswich or Toowomba region. I'm new to this forum. How to contact you for investment opportunity like this.
     
  16. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Brett looks after our investors.
    [email protected]

    ps. Have seen 3 horrible SDA Robust in Brassall this week. Robust needs to be on wide blocks with 10m from neighbours a good guide. Most of the robust dual keys out there don't work. We have a massive waiting list for those that do
     
  17. punti

    punti Active Member

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    Waiting list for participants or investors?
     
  18. felar

    felar Member

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    I just read through the SDA Design Standards. Apart from mandatory requirements, there are "Best practice recommendations" listed there as well.
    I figure are these recommendations plus other best practices acquired by yourself explains why some "enrolled SDAs" are not "fit for purpose"?
     
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  19. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    There are a whole range of things not addressed anywhere in writing. The standards are absolute minimums and accordingly work only for a minimal number of people.
     
  20. See Change

    See Change Well-Known Member

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    Hi RPI

    Are people being put off investing in Robust due to concerns about possible damage to the properties ?

    If a robust property is damaged, who is responsible for any repairs and if it's the owner , can that be insured against , is the SDA responsible for repairing or are there funding provisions for repair work under SDA ?

    Cliff