The video below inspired us to take action
Disability Housing Solutions and Domacom invites Social Impact investors to fund the development of 100 NDIS Special Disability Accommodation (SDA) – High Physical Support Level houses and apartments to accommodate 400 NDIS SDA participants, who are currently stuck in Canberra Hospitals, Aged Care facilities, or at home with ageing parents.
The NDIS is only part of the solution. Collectively, local communities and socially responsible investors can help solve this crisis.
There are estimated to be 6,000 young people with disability living in aged care homes, thousands more in shared wards in hospitals because there is no appropriate housing for them to go to. Another 78,000 estimated to be living at home with ageing parents who just can’t cope and need help.
Project Overview: Location: various suburbs across the ACT. Close to public transport, community infrastructure, and shops.
Estimated Project Costs: $10,000,000 (this initial target is to fund our current projects, our overall target is $100m)
Minimum investment: $10,000
Estimated Net Yield on Equity Invested: 10% p.a.*
*The 10 % return on investment is derived from a combination of the NDIS SDA payment, 25% of the tenants disability pension + Centrelink contribution.
Investment structure and expected returns may vary depending on the configuration and location of each individual property. Details information on Current Projects can be obtained by attending our Online Video Conference Sessions.
Social Impact Investors have an opportunity to invest in high cash flow residential investment properties, and deliver Specialist Disability Accommodation for high physical support needs people who are currently stuck in hospital or aged care homes.
Prospective NDIS SDA participants, and their families also have the opportunity to invest, and secure long-term leases. To apply for a tenancy in these properties, please email: firstname.lastname@example.org
Participant NDIS SDA houses with Onsite Overnight Assistant room, for visiting allied health professionals, personal support careers and family/friends.
· Houses, and apartments built to the NDIS SDA category of High Physical Support
· Fully accessible bathrooms.
· Overnight Onsite Assistance room and ensuite.
· Smart House ready.
· Ceiling hoist tracks.
· Solar System with battery power backup.
· Hydrotherapy Spa Pool with hoist.
· Close proximity to local shops and community facilities.
· Close to public transport.
NDIS Specialist Disability Accommodation Overview
NDIS SDA refers to accommodation for people who require specialist housing solutions, that cater for their extreme functional impairment or very high physical 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.
The NDIS will only fund SDA housing when it is a reasonable and necessary support for a participant due to extreme functional impairment or very high support needs, in accordance with the SDA Rules (2016).
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.
Further NDIS SDA Investor information is available for download at www.disabilityhousing.com.au/ndis-sda-updates/ndis-sda-investor-resources/
If you would like to invest in the NDIS Specialist Disability Housing Fund, you can join this crowdfunding campaign by completing the application and lodging your investment funds through this General Advice page. Please ensure that you first read the DomaCom Fund’s Product Disclosure Statement (PDS). For a copy of the current PDS, please click here or call your financial adviser.
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 NDIS Specialist Disability Housing Fund 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 NDIS Specialist Disability Housing Fund development crowdfunding campaign until you accept the offer contained in the SPDS (which will include the specific details for the properties).
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 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 are a range of events that can damage the Underlying Property including acts of God (fire, flood, earth quake 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 is 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 manager the property and secure tenants to 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 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 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 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|