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NDIS Property Investment Opportunity
Disability Housing Solutions invites investors and friends to fund and develop 3 Bedroom NDIS Specialist Disability Accommodation (SDA) – High Physical Support Level house in the suburb of Banyo ,QLD. The house will accommodate 2 x NDIS SDA participants plus a room for support staff, and or visiting family or friends.
The current and future demand for disability housing in the northern suburbs of Brisbane, especially the Banyo area is high with smaller, single level shared homes being deemed by Disability Housing Solutions to be the most suitable design category that offer flexible tenancy configurations.
Land: 550+sqm Build: 250+ sqm close to public transport, community infrastructure, and shops.
Estimated Project Costs: $886,675
Funded by: Equity 100%
Once the project is completed and fully tenanted with NDIS SDA Participants.
Estimated Net Yield: 9.5% ongoing (*establishment costs in first year will deliver 8.24%p.a. Net yield).
Investment Strategy: To offer Social Impact Investors the opportunity to secure long-term investment property that they can be proud of.
NDIS Specialist Disability Accommodation Overview
NDIS Specialist Disability Accommodation (SDA) refers to accommodation for people who require specialist housing solutions, that cater for their extreme functional impairment or very high support needs. SDA funding is intended to stimulate investment in the development of new high quality dwellings for use by eligible NDIS participants.
SDA funding under the NDIS is a legislated commitment of Australia’s Commonwealth, State and Territory governments
High-quality fit-for-purpose dwellings making it easier and less expensive to provide the range of person-to-person supports that SDA participants require. Improved design in SDA dwellings can reduce person-to-person support needs, and allow for choice in models that utilise shared supports.
Broad benefits to all parties including participants, providers and the NDIS underpin the long term commitment to SDA funding.
The relevant Legislation can be found by clicking here.
Please ensure that you first read the DomaCom Fund’s Product Disclosure Statement (PDS).
If you would like to invest in the Banyo Project, you can join this campaign by completing the application and pledge your investment through this General Advice page. Please ensure that you first read the DomaCom Fund’s Product Disclosure Statement (PDS).
When you have lodged your bid and the campaign is filled, you will also receive a Supplementary Product Disclosure Statement (SPDS) outlining the specific offer to invest in the Banyo Project which will contain all the information required for you to make a decision.
You are not bound to proceed with your bid amount for this Banyo Project co-investment campaign until you accept the offer contained in the SPDS (which will include the specific details for the properties).
For further information please contact:
Disability Housing Solutions Pty Ltd
If you are new to DomaCom, click on the Apply button to begin your application. If you are an existing DomaCom Fund investor, you can log in to access your account and all the other public crowdfunding campaigns by clicking the Investor Login button.
Risks for Property Sub-Funds
Refer to Section 7 of the Risk section of the PDS for an explanation of the risks involved in an investment in the DomaCom Fund and the general risks associated with property markets.
Specific risks of this investment:
- Property not acquired – If there is insufficient investor interest the property will not be acquired however Investors with an Active Bid will all be proportionately liable for the Campaign Costs. A list of approximate campaign costs is set out below.
- Value changes – The value of an Investor’s investment will go up and down in accordance with the value of the Underlying Property. There is no guarantee that the value of the investment will increase, and it may in fact decline in value.
- No guarantee – Returns are not guaranteed, and Investors may lose some or all of their capital. The nature of this investment is to expect an appreciation in the value of the units, with little to no income to be paid to investors during the term of the investment. There is no guarantee that this expectation will be fulfilled.
- Past performance – While this area in which the underlying property is based has experienced capital growth in the land value in the past, this is no indication it will increase in value in the future.
- Liquidity risk – An Investor cannot withdraw from the Sub-Fund until the Sub-Fund is terminated, and the Underlying Property is sold. DomaCom does intend to offer a facility through which Investors can seek to sell their Units to another party, however, there is no guarantee of this.
- Damage or loss – There is a range of events that can damage the Underlying Property including acts of God (fire, flood, earthquake and other natural disasters) through to accidents, negligence, and failures of maintenance. While insurances will be in place it may not cover or may not fully cover such losses.
- Insufficient income – The costs associated with Underlying Property may exceed its income, however, if there are a shortfall, Investors will be given an opportunity to subscribe for additional Units in the Sub-Fund to meet those expenses pro rata to their Unit holding in the Sub-Fund. Investors who don’t subscribe for further units will have their investment in the Sub-Fund diluted.
- Vacancy risk – a property manager will be appointed to manage the property and secure tenants to the tenant, the property and derive income from the underlying property. If tenants are not secured there is a risk that the property will not generate the income that has been budgeted for. If this were to occur the investors may be required to raise further funds to offset the expenses of running the property.
- Unexpected property event – The risk that the Underlying NDIS Property may be negatively impacted due to a property-specific event, for example, a change could occur to local zoning rules, development of competing and other events that were not anticipated at the time of acquisition.
- Economic risk – There is a risk that the general economic conditions in Australia may change in relation to interest rates, employment rate and economic growth that could, in turn, have an impact on the Property market and specifically the value of the Underlying Property.
Fees and Costs
Refer to section 13 of the PDS for Fees and Other Costs
The Management Fees for managing your NDIS Property Investment:
- Cash held in your Cash Account 0.22% p.a.
- Property Sub-Fund 0.88% p.a. of the Gross Asset value of your investment
- Loan Sub-Fund 0.44% p.a. of the Gross Asset value of your investment
Set out in the table below is an illustration of the campaign costs that are likely to be incurred. An Investor who participates in a Campaign and has had an Active Bid which fails to result in the formation of a Sub-Fund will be liable (in a proportion that is equal to the amount of their bid divided by the sum of all Active Bids at the time the Campaign costs were incurred) for the Campaign costs incurred by DomaCom. The investors will be only liable for Campaign costs and Acquisition costs that are set out below if the Sub-Fund was not created, as these costs have been incurred prior to the acquisition of the property.
The settlement costs set out below are only incurred and payable if the Sub-Fund is created and the NDIS property acquired.
If the Sub-Fund is established, these costs will be deducted from the Sub-Fund and only those investors that accept the SPDS will incur the onboarding costs – Campaign, Acquisition and Settlement costs.
The costs below are an example of the campaign costs, the actual costs may differ and will be set out in the SPDS.
|Contract review and title search||$500-$1000+GST|
|Building inspection and pest report||$500-$1500+GST|
|Property valuation report||$500-$5,000+GST|
The following costs will be incurred, whether or not the property is purchased.
|Legal costs (if contracts require further amendments||$2,000-$2,500+GST|
Below is an estimate of the following Settlement costs if the purchase is successful and a Sub-Fund is created. These costs will only be incurred if the Property is purchased and will be paid from the capital raised on the acceptance of the SPDS.
|Estimated Settlement Costs||Estimates|
|Conveyancing costs||$1000 – $2,500+GST|
|Stamp Duty||Varies based on state and Property Value|