NDIS SDA Robust - Positive Cash Flow Land Banking

Hi Cliff

The Robust properties are pretty resilient. If you punch the wall it hurts your hand etc. If you throw a saucepan at one of our walls or windows it just bounces off. When not properly designed there are more likely to be issues as wrong designs can escalate things (eg sharing). But yes can be insured against as the tenants are not expected to damage the property, ie it has resilient materials so to damage above that is malicious. NDIS has covered anything above minor repairs from what I have seen.

 

Hi Daryl

With Robust, you mentioned that they don't like to be to close to each other or neighbours .

How much land do you ideally need for say 2, 3 or 4 villas ?

Regards

Cliff

 

the design categories are on the NDIS website

 

But I mean proper ones, those that work. Build to the Robust standard doesn't mean it works

 

In line with these questions I am trying to determine what if anything the owner of the property is liable for in relation to maintaining the property. Is it a commercial lease that you enter into with the SDA provider?

Land tax - are these properties exempt from land tax in all Oz states? For instance, in Qld these properties may fall under "Supported Accommodation exemption" but not sure.

Maintenance of the outside of the property - Mowing, Cleaning Gutters, fixing fences, fixing doors and windows, regular painting on outside of the property to maintain a cosmetic appeal.

Then there is the leaking taps, running toilets, pest control, door handles broken due to misuse or heavy use, sticking doors etc,

These houses seem to be a gadget heaven with lots of extra items which can go wrong and are specialty items. Simple one is remotes not working for A/C other are more complicated because I am not familiar with them such a lift bars and machinery to assist lifting and just generally all the other gadgets that these houses have to assist the occupant.

The multitude of A/C units that suddenly need immediate attention. The dishwasher, the TV (s) and even the light bulbs.

The impact on all these items on higher need tenants don't even know what "robust tenant"would inflict on the property.

Etc, etc

All of these items will add up and erode that gross figure that has been bandied around.

Certainly from my experience in the USA the erosion to the bottom line can be horrendous.

 

Hi HA

No Land Tax Concessions

Yes there are maintenance costs.

Yes they do erode the percentages but the percentages are so high that it still works.

The much bigger risk is building crap places in the first place. So much rubbish I see is not fit for purpose.

I was inside one of the "competition's" houses this week, meeting their tenant who is about to become mine. Tenant is living there now cause she was desperate and nothing else around. But is moving in to one of mine as soon as finished. No solar, tiny, horrible layout, so much that didn't work for her, but had wider doors so at least she could drive in here chair inside the house.

 

@Handyandy

think you’ll find @RPI is a happy to offer a 10 % return or a flow through lease where the costs come out of the gross rent.

cliff

 

Is there any high demand areas in vic regional right now ?

 

Yes there is. We work with a large care provider down there that can't enough Robust.

 

Do you have a recommended location for building Robust on acreage lots in VIC regional area?

 

How much more land needed for Robust duplex compared to let say normal SDA triplex?

 

you need at least 10m between each dwelling and edge of dwelling and land. So lot's more

 

ok thanks. I got a 1200 block (big regional nsw, walking distance to town centre/shops) with 20m frontage but an old house on one side. ideally is to maintain the old house. it is in a flood zone so will be expensive to develop. just waiting for land to appreciate a bit more.