QLD SDA Unit Complex 4 Sale - Fully Tenanted

Hi Darryl,

How is the sale of this property going?

 

Hello, do you know if this property has been sold?
Anybody explored the price expectation?
i am interested to buy a ready made property
Thanks!!

 

Sorry, but I'm not sure if I believe that.
$131 is an annual lube at best, but these things require a lot of maintenance.
The buyer might be able to pay for it, given the high income, but $131 is unrealistic in my opinion, the average annual cost will be many times this.

 

Sold over $4.5m

 

That's what the lift company charges for an annual service. They are made in Coopers Plains at Aussie Lifts.

 

We rarely have anyone that wants to sell completed. But might be a few more with those prices

 

Price $4.5
Rent gross 438k. Given the extra equipment 25% expenses = 329k
Gross return 7.3%
A little over 11% on a 50% LVR

For a single purpose building governed by endless regulation and bureaucracy.

 

For the person who’s built the SDA at a price of mid 2’s the figures are slightly different.

Cliff

 

I'd say they're a lot different and a lot better.
I've spoken to 4 diff people into construction who were looking into building SDA and all moved on to other ventures.

 

Actually , to the best of my knowledge . they’re the same thing . The blocks of 4 units with a construction cost starting around 2 mill are the ones that are selling , constructed and tenanted for over 4 or in this case 4.5.

We’re about to settle on a block of land for a second SDA . We could fit a block of four units on it , but we’re doing it in our super so we can’t borrow to build . We did talk to people about a joint venture . Our accountant was interested , but we decided that at the moment we don’t need the additional stress and while the additional money would be nice , in reality we’re moving towards a very comfortable retirement so we don’t need it . Our super could do a joint venture with us , but that would involve in selling properties we want to keep .

We’ll put a couple of villas on it instead which we can do with no borrowings.

Yep , there are people who look at SDA and walk away . I have a friend who puts together investment syndicates for sophisticated investors . He looked at it but thought it was too complex . He’s good at what he does , sourcing deals and developing and he decided it wasn’t for him .probably similar to your friends .

That’s why I’m happy to listen to someone who has a track record of town planning , development and has spent the last years learning all the ins and outs of ndis . A track record of working in charity for many years also shows when people are in it for the right reason.

There are people trying to do it for the wrong reason .

Cliff

 

What's the wrong reason?
They are all marketing and selling SDA as an "investment".
Is investing in SDA for an ROI the "wrong reason"?
Is promoting "amazing returns" the wrong reason?

These people are builders/developers looking at 10-20m builds.
They start making enquiries and get no answers, vague answers and ones that don't make sense.
You're in that business so you understand it.
People in my circle, like me, are just looking to deploy capital and getting a reasonable return commensurate with the risk.
When they see what looks like shady spruikers, they move away. As they should.

 

Can experienced sda investors share how long did it take from the time land settled to participant moving in?
Many thanks

 

building to standards rather than for purpose .

cliff