Hi, I am finishing a small development and will be holding on to one of the blocks (2000m2). I was planning to build my PPOR on it but after chatting to my sister who works in Disability Support Im now looking into a SDA build. I've had a read on this forum tonight and tried to work out the demand in my area (4130) but can not decipher the data? I have the option to further split the block into 2 x 1000m2 blocks and thought it would offer a great opportunity for a nice big flat yard with pool etc. Are there advisers on here that can assist or can you point me in the direction of an ethical SDA specialist that can advise on build cost, returns, requirements, demand etc?
Here is one of ours going up in Shailer Park. Although we haven't signed leases with tenants yet so it's not formal, it looks like it's full as we have more people who want to live in this one than rooms. BUT the view here can't be built out so that has a lot to do with it.
@RPI , who’s company NDISP is an SDA provider , is the person to talk to in the forum . Contact details in his profile or start a "conversation". RPI has been a member for a long time . We’ve done one with them and are just about to settle on a block for another one with them . Read all the top posts on the NDIS forum to start with, including by @Harris who documents he’s experience . If you’ve got a half an acre block , then Robust would be an option to look at . It's the one with greatest shortage . Rebates initially weren't great , but they have been adjusted . Not much being built . Cliff
I seemed to get nowhere and no answers with NDISP. Posted here looking for range within 10k of BNE cbd, then posts about buildings >10kms. Another provider seems a little more responsive with specifics. Not sure how it'll go. A third provider advertised "14% net gov guaranteed rents", then read the website and I get "5% rent guarantee". SDA is cowboy land
I've had no problems getting replies from NDISP. All the SDA providers are busy and they're new businesses. If they're not busy , that says something to me ... Surprised you're wanting to talk to anyone as you've only said negative things about SDA up to now ... Cliff
You work in the industry. It's a bit different than an outside investor. Not negative on SDA, just the people that are involved in it and the changing claims they make. Always curious I followed this pic And got a page that said "5% rental guarantee". So let's start again. NDISP website: So where are these NDISP Platinum properties? How do I get one? None available? Fine, happy to build one. What do I? Who do I talk to? Do you have plans, specs, general requirements? Or a builder or many that already knows? I'm not the only one with these questions as i have spoken to a few others who just shrugged and said "good luck with that". Maybe they are just holding them close as it's lucrative. Fair enough, but no need to advertise. Great. How can I buy or build one of each? At that return or close.
As I've said before when you've said this , No , I don't work " in the industry " . Everything I've learnt about NDIS , I've learnt by doing my DD. My observation is there's a lot of tyre kickers out there , but if you do your own research and show some degree of commitment to investing in SDA , maybe you'll get the answers you're looking for . As I've said a couple of times before , IMHO , SDA is for sophisticated investors . Doing my own research , meant that when I talked to people , it was easy to know who to go with , and they knew from my understanding , that it was worthwhile them investing their time in me ... I don't know too many places that give you up to 15 % gross return , without putting some level of dd in , either in terms of the investment , or the people behind it. Cliff
Apologies, I thought you posted that you were somehow involved or had a connection with the industry. I get that. I'm just a westie, not very sophisticated. I shall learn a British accent LoL. Thanks, working on it, I may need to try a different approach. And from what I see there's just as much or even more demand in West and SW Sydney than Brisbane area. Yet most the guys advertising and with websites i see are Qld based.
Part of the reason for Queensland emphasis , is I understand it's done as a complying development so less hassles with council which makes it easier to roll things out . Also Queensland has a long term love affair with developers , but that does mean you have to be careful who you deal with.... Demand is in most places . While you will get higher returns in Sydney , IMO , they don't justify the extra cost of buying and building in Sydney . Bigger spend. Cliff
Sorry our website is super out of date. We don't really sell anything. And most of my posting on here is about what not to do as there are so many marketeer people out there. Email [email protected] or talk to Brett or Dean. They can tell you what's needed and rough costs. But we don't sell anything really. We can find land, but would rather you did so. And you are stuck with us for 20 years. We will introduce a builder to you and we will only work with designs and locations we like so we don't have vacancy issues in 5 years. I'd tell you to develop robust duplexes as I need hundreds and hundreds of them today and have very few. You need big blocks of dirt and the returns aren't as great as other options, but $730k to build a duplex that returns $100k ain't terrible. But then you need the 3000m2 plus lot. Makes it a lot lower than others. Its also less like a normal place. Houses cost $400 for IL and $600k for HPS. Sometimes.less.sometimes.more. you need 450m2 land plus in most states, not to far away from shops etc. Outer new estates are a no go In fill land is superior. For units. 600m2 25m frontage minimum. Outside of Brisbane larger. NSW planning exemption is coming soon, for now QLd is easier. $2m for a 4 unit complex. We don't mark up the builds and will work with your builder though will charge more if it's one off. Lots of training with builders. We have or own in house architects and project managers to do the designs and make sure the specs are right. So although it's build contract between you and the builder, the builder pays as a consultant and that is disclosed by both us and the builder. NDISP doesn't make money from these dream. They are cost recovery . Our income comes from having people in properties.
I'm sorry if this is a silly question but as I mentioned in my original post, I'm a beginner just looking into this to get an idea if it is suitable for me. You look after the property like a property manager, you find the tenants and the live in carer and get the rent and government incentives? I just provide the property and maintain it? Are there minimum lease terms, guaranteed returns etc?
Thanks you @RPI that helps a lot. One of the reasons I keep perservering is that I have family friends that use SDA services. You need a registered provider such as NDISP to find tenants and manage the property. As PM's they collect the rent and liaise with the gov orgs that organize carers. Their fees seem cheaper than most other providers I looked at. Lease terms are 10yrs, no such thing as a guranteed return but as long as the tenant want to stay there you get paid. From what I can tell, NDISP also take care of all the maintenance. If you're concerned about saving a few bucks by doing things yourself, unless you're a maintenance professional or tradie, I doubt this type of investment is for you. You provide the property, which generally needs to be built. And that's the tedious part. The property must be built not just to minimum requirements, but also to suit the specific needs of those living there. If it doesn't, they will just be looking for a better place. And it's a very expensive and bureaucratic process to get a new tenant. So it's a little tedious in getting right down to the details and specific build requirements. Also you will need at least 30% deposit. So if you don't have at least $300k readily available you won't get finance. If drawing on credit you'd probably need to make provision for 12mth interest. happy to be corrected if i missed anything. You will find more info here NDIS/SDA Properties - Too good to be true?
PB you seem to be learning pretty quickly In some situations NDISP might offer a guaranteed return , but you should get a better return by having a flow though lease , ie they deduct fees and costs and you get the rest . With our first one there’s a ten year lease with a ten year option . cliff
Awesome response. Unfortunately this space is filled with dodgy sales people out to make a buck who don't care about people with disabilities or the investors they rip off. So I get your skepticism. Appreciate the candidness
Thanks, that's how I understood it. I pay to build a home that is built to meet the needs of an SDA tenant and then hand the home over to a provider and they organise the rest. I am just cautious because I don't know much about the industry and have been warned there are many money hungry people in it for all the wrong reasons. My sister has quite a successful NDIS company and she was telling me how hard it is to find suitable accommodation for her clients and then it got me thinking about what I could do to help and also make a decent return.
NDISP have an in house architect ( actually , now 3 ) and a close relationship with providers , so getting the design correct is really important . Outside block selection , which Daryl advised us on , they organised most things . We did ask for some minor tweaks on the design so there was some minor too and fro . They also organised the builder , who they have an ongoing relationship , so the builder is familiar with the requirements. We were doing a knock down / rebuild and our main delays came from council ( on the demo / cutting off services ) and Covid . It’s a new industry with potentially large returns so it attracting some of the wrong people . More obviously now than when we were looking in 19. Our experience dealing with Daryl and NDISP has been as painless as any build we’ve done and given the complexity of SDA , that’s saying something . No issue with the PM . Less so than with normal properties . As everything has to be done via people registered with NDIS , our only involvement is entering the rental receipts into MYOB. You can’t go into with the mind set of trying save money here and there by doing less . We went in with the mind frame of “ what else can we do to build a home that people don’t want to leave “. While there’s no hint of oversupply , we’re doing this for a long term hold so we want to future proof as much as possible . The money does take a time to flow after completion , so you need to be in a position where that’s not an issue , and can afford the holding costs . We’ve just had our first big rent come through in May . Property finished in Jan . That all comes down to government paper work . cliff
I (along with a few others it seems) am looking into this for various reasons. I have spoken to a few providers and got a very 1980's bottom of the harbour feeling so was about to run for the hills. I actually went along to one of NDISP's open homes where they show the home to prospective tenants. I was very honest in saying I was looking from the investor side of things and must say it was extremely helpful and admit I am changing my mind. The build was quite impressive (custom handrails suited to the tenant, back up power supply, voice controlled thingy) but the gold was talking to the guy who signs tenants up and the architect who was there to capture any comments on the design for future improvements. It is clear the industry is still very immature with a lack of in depth understanding from various players. Unfortunately that could be the only hold up making the connection between people who live in disastrous conditions and your brand new bells and whistles accommodation waiting for them. You need a good registered provider to help educate whole sections of the community unfortunately, but I am looking for land now.
