Whom to work with, besides NDISP?

We did read the contracts . They're not standard residential contracts , Flagged some clauses , had a commercial lawyer review them . Discussed with NDISP the reasons behind the clauses and they were happy to amend some and a couple no . They explained the reasons behind the clauses and given that , we were happy to sign the contracts which we did .

Maybe you didn't do enough due diligence to understand the logic in the contracts.....

As I've said all along , IMHO , NDIS is really for sophisticated investors who have the ability to do the own DD . Obviously not for you

Cliff

 

thanks for the detail, i am investigating my options with NDISP and they seem good so far. The cost of Build was my concern since a new 4 bed room single storey home in Brisbane would cost around 700k+
can you share any details if possible on yours ?

 

Building Prices have gone crazy at the moment .

we’ve been hit by this while trying to organise a small block of units . Had an estimated price range a few weeks ago and the builder just got back saying the price at this stage will be 200 k more which is close to our top price range and that’s not locked in until all the detailed drawing are finished and a final quote is done
We’ve just pulled the plug on doing the units and will go for a house 3 Br + OOA ( ie 4 bedder ).

We’re still happy to go ahead given the return we’ll get , and we can use left over funds to pay down debt and buy a couple more properties .

For our first house 3br + OOA We paid low / mid 500’s starting 2 years ago . Sadly in the current market 700 plus wouldn’t surprise me .

Cliff

 

Let me also chip-in as I just read this thread!

I have to-date had more than 20 phone chats with Darryl & Brett at RPI.

I have exchanged over 50 emails with Brett and his staff re my various dev sites in Melbourne & regional VIC, about building SDA complexes in QLD & NT and getting them to provide feedback on incorporating SDA in some of my new developments.

Some of those required hours of background work by Darryl and his team. I also met Darryl, Brett and their team for over 4 hours in their HO in Brisbane - and was answered on every single question, without a whiff of 'sales banter' - not once. Their design and compliance team reviewed at least a dozen of my sites and provided detailed feedback.

I have not once been asked to pay anything upfront, to sign contracts or told that after 12 months of working with me, they just cannot be bothered assisting me.

This space is heating up and a lot of funds are entering and NDISP are in this to their eyeballs. My understanding is they have more projects than they can handle and between half a dozen entities that I met in QLD in this space, I found them to be the most open and honest NDIS player, by a country mile.

The only reason I have not proceeded with SDA is because I get cold feet at the decision time capitalising a lot of funds on a small build and have instead ended up buying blocks of resi units and developing some of my land holds. I am still keen on doing SDA and have had truckloads of people inboxing me asking for recommendations and every single response has been to recommend NDISP. I have seen issues arising out of some of other players and having dealt with the largest law firm advising federal and state gov on NDIS, and seeing how many developments end up being 'untenantable', I have zero hesitation in recommending NDISP. As I understand, all of their developments are tenanted and do not have compliance issues which are rampant in the industry,

If I had an incredibly busy sales pipeline in an emerging space and I keep getting requests to provide info, I would prioritize my time and limit to who I provide the info to... There are a lot of new players even in Melb (local) and I wouldn't touch them with a barge pole - having spoken to them.

Sounds like a good ol' plug, but if you need to invest SDA, I would just go with RPI.

 

Obviously the deal wasn't that great otherwise you would've done it.

The space is hot because for the ast few years operators have been advertising returns over 15%.

lol you're recommending something you would'nt do yourself.

 

The deal is too good hence so much time qualifying and doing DD on putting in a significant chunk of my investment in this space.

From the very first time I contacted RPI 18-20 months ago, I was told it will be 9%-10% net and that hasn't changed! Some were advertising 5x HPS in a double story house with 16%-17% net and they are still vacant!

If I was to do SDA (still very likely), I will only do with NDISP - No one else and like I said, I met truckloads of them in person. The reason I am yet to do it is because I have my fingers in a lot of pies currently and I will get more breathing (& thinking) space once I have monetised out of a venture I am invested in - in a few months.

 

No one is suggesting NDIS is for everyone . We've done one and have a second one underway . Brett offered us one where someone got cold feet a week or so ago ( 160 K return , 1.05 land and build ) and the only reason we didn't go with it was we're getting close to retirement and it would have been putting too many apples in the one barrel . For me the biggest risk with NDIS is the systemic risk asssociated with the program . If I thought that was a realistic concern I wouldn't have gone into NDIS at all . But IF there was an issue I still want to make sure we have a comfortable retirement .

I'm generally not into diversification , I prefer to put all by eggs in one bsaket and watch closely ) , but in retirement , I want to have a diversification of investments and investment vehicles

NDIS income in retirement will have us flying Business ( heck even first class if we want to ) on a regular basis of holdiays to where ever we want with out having to worry about the money .

Before , we would have had to budget for that .

Cliff

 

Hi Cliff,

Would you be able to let me know what commercial lawyer you use? You can PM me if you prefer.

Thanks

 

For the record , we weren’t impressed and if we needed someone , I’d be asking for reco’s from the forum .

cliff

 

Hi RPI could you elaborate on who to avoid in QLD? 47 vacancies for 50 builds doesn’t seem like a good stat even if it was at a particular point in Time. Looking for a quality sda home builder for 3 + 1 HPS Thank Jimmy

 

Hi Jimmy
It's not the SDA builder, it's the SDA provider. Anyone can build SDA if they are being managed. In QLD I'd be extremely cautious as most of the stuff being built is absolutely terrible.

 

Hi RPI, realistically what would one be looking at in terms of entry costs for a quality NDIS build in QLD (high physical support) in the current market? Just started doing my research and have been seeing a lot of adds from NDIS Investing claiming it can be done with a deposit south of $150,000. Also how difficult is it to secure finance for an NDIS build? Any specialised lenders you could point me to?

 

A 3 resident house under $750k for build only is not going to cut it. So $1 - $1.1m
It's harder for block of units but houses seem ok for finance but we don't sell anything so don't get involved in that

 

I have been watching the SDA space for a while and thinking of investing. Although seems risky and pricey. Is the $1-1.1m for the build and land? Where in QLD are these prices for?

 

$700-$750k build plus the land price. Rockhampton highest need at the moment. Townsville is full. Toowoomba is full.

 

Hi Cliff,

We are going through the NDISP Head Lease and have also requested a few changes. Some they agreed to change, others not. What changes did you request and what changes were NDISP willing to change for you?

 

A while ago ,so can’t remember now ….


Cliff

 

Has anyone had any experience with Property Direct Pty Ltd? They offer co-ownership of SDA Smart Homes from $250K with the same ROI (9.5%*) as full ownership. They also claim to tenant their "SDA properties 40% faster than other SDA Providers". I am yet to book a discovery call to find out where these prosperities are located and other info. Cheers