This document explains it better than I can – in short, should you choose Horizon to manage your property, you’ll pay a fee that includes all foreseeable costs from sourcing & managing tenants to regulatory costs.
There is a furniture allowance included when you build one of these properties. This also includes some smart home additions to the home. Anything very specialised for a particular tenant would be paid for by the NDIS when they move in.
We’re discouraging breaking ground until you have at least one participant. One participant is enough to make this opportunity cash flow neutral in many cases.
Yes you can – if you have the full purchase price available in you super. Always work with your advisers before entering into any agreement.
Like any rental, participants pay the day to day costs.
Actual payment amounts can be seen at http://ndis.gov.au
This is a Disability Care related opportunity.
It’s highly likely that valuers have never seen an NDIS property before.
There is no precedent to work off.
They possibly may not understand that its more expensive to build a property that caters to the disabled. As an example, the kitchen and bathroom will be up to 20% more to build and the valuer will most likely not have comparables to work with. It’s important to understand that the $560k property you are building may only be valued at say $500k. Hence, if you don’t have any equity or extra cash then this is not an investment for you.
Traditional lenders are still coming to grips with understanding the NDIS. Further, not all lenders will want to take on a security that may end up on “Today Tonight” for kicking out the disabled! In assessing your finance application, the lenders will only use normal market rent and not the rent the federal government will be paying.
So for example, if the 4 bedroom $550k house would normally rent for $25kpa, then this is the figure they will use. Hence if you are relying on the $100kpa rent to help you get access to finance, then its highly UNLIKELY your finance application will be successful.
VERY NEW CONCEPT
There is no question there will be hurdles that the NDIS providers, federal government,
legal professions and everyone associated with this new era of property investment will encounter.
There is still an element of “we don’t know what we don’t know”. Hence, if you are looking for a property investment that has a history of knowing what problems typically arise, then this is not an investment for you.
7% – 15% Expected NET Return, Based on Platinum, Fully Accessible NDIS Level
Returns will vary depending on location, land cost and custom design specifications