Why NDIS Property
NDIS Research Reports
Hey, I may be totally out of line here, but I don’t believe I am …
There are sales groups out there pushing NDIS Housing or otherwise known as SDA property, offering investors, Reports at a fee or even for free.
The marketing strategy here is logical and makes sense, because as an investor, if you pay for something in life, in this case a Report, you naturally believe in the info or ‘data’ shared in that report.
Yes?
Purpose of SDA program under the NDIS
To provide suited accommodations for people with Disability, within their communities, close to required infrastructure so that the participants may thrive.
Meaning it should also be an Ethical Investment where you deliberately build with the participant first and foremost in your mind, followed by the needs of the carer … then they will come.
And we know that it can only be ethical, if the offer you are receiving or being sold, ticks the stringent requirements and purpose of the SDA program under the NDIS, which is also a rather complex scenario, you do want to ensure you get right, from the outset.
Back to Industry Reports
There remains inaccurate data and misinformation being extrapolated out there, as to where participants are wanting and needing SDA accommodations. This data primarily is being extracted off the government’s website and demand map, where they know what NDIS Services are being provided in particular locations and other additional data around NDIS participants, providers and numbers etc.
Are you aware that the demand map is there for NDIS services, which has little correlation to SDA demand.
Meaning, if only around 6% of all NDIS participants can qualify for SDA funding, then logically, you would only take 6% of the participants in the category you are wanting to build for, under that disability classification, and not look at all the NDIS stats on current supply of NDIS services. I hope I have explained that clearly enough for you? The demand map stats are not for SDA demand, they currently show current and future NDIS ‘broad’ services being provided and projected to be provided to those under the NDIS umbrella.
SDA Demand Data
Now this is where I do stand corrected!
We are unable to locate an accurate and up to date data base for SDA demand and current supply figures, so for any particular location, the data does remain somewhat vague. We never really know how many are being sold and built in any particular location. And will only know once homes have been build and added to the official register for SDA homes.
There is one ‘demand’ data base out there, but it is irregularly populated by the industry, and you may not be aware that if a participant is placed, their name is often not taken off that data base either.
Yet, the NDIS sales groups who are encouraging you to invest in a purpose-built SDA dwelling, at a higher cost than the property next door, based on the potential that you “could” earn $xxxx’s, if you invested in it. And the data that they will share with you (where they do) includes xyz etc. but ask yourself “how real or accurate can this information be, when there are no data bases to support what they are giving or selling you in the reports shared?
What data are they selling you in their reports, and where is this data being sourced from?
Then how up to date or out of date is the data? And of course, what is the level of accuracy of the data sold or given to you? And is it even SDA demand applicable? You need to ask them these questions and more when doing your own due diligence!
Are these sales companies also telling you how many SDA’s are being sold and or built in the area in which they are selling you yours? Ask them, this is a vital bit of information!
SDA’s being sold into that area?
NDIS Market Analysts
We work closely with market analysts who charge $15,000, $50,000 and more for their reports, depending the complexity of the intended investment, that large SDA want to be investors are looking to build.
To a sophisticated investor or a company wanting to build a significant SDA project, data is vital, yes?.
And so is accurate data vital to ensure their intended investment stands every chance of succeeding. What this means to me is that a report for $300 or even $1k would be lacking substance, when we know how much a true market report costs.
How can any industry report cost you the intended investor in a SDA house, less than $1k?
Everyone knows that these reports need to be indepth, well researched, and they take hours and hours to research and draw up for any particular location. Ask any analyst and they will verify this.
So, what info is really included in a mass-produced pdf report, that you are only paying a couple of hundred dollars to get? How valid is the data? How can you trust the information you are buying?
Is this starting to make sense for you now?
If not, ask the salesperson offering you a report, to substantiate the source of the data? A watered-down report from an analyst will still be around $7,000 for the amount of work that the report requires from professional analysts.
Question the Validity of the data
Question the data, the source of this data and how valid it may be …. before you buy into the information. Otherwise, you are making an ill-informed decision and not even aware of it, when you and I know you are wanting to make an informed and very important investment decision. This remains a highly complex investment space. Treat it accordingly.
Hope this is making sense for you, it is that vital that your decision is an educated and informed one, the asset you are investing in is expensive.
Your Investment Decision
Sit back and ask yourself “How important is it to you, to get the decision correct at the outset?”
We know how important it is to us, that our clients are well informed, and thus avoid the glitzy marketing others are using to appeal to your greed or fear of missing out.
We have Participants waiting
Gotta love this one.
If I may : “when a sales company tells you that they have tenants in waiting – ask them to show you a contract for the dwelling they are wanting you to buy.”
I raise this because we all know that people/participants take up the first accommodation which becomes available that suits them, and do not sit around waiting for yours to be built. We also know that participants move elsewhere, or that they may get too ill for a SDA, or sadly even pass away.
Telling you what you want to hear so that you buy from that sales company by falsely ‘lending you confidence’ in saying that they have participants in waiting for this particular property – is merely telling you what you want to hear. Ask for proof and a guarantee from them if they are that confident.
My question is “how can a sales company, spruiking this to you qualify and guarantee that the so-called tenants in waiting are really there, OR will be there in say a years’ time, once your NDIS Property has been built, certified and can then be occupied?”
There is no way on earth that an ethical group such as ours, would even suggest that there are tenants in waiting. It is a fabrication!
NDIS Demand Data
Sure, right now there are participants in need of SDA’s and more participants will join the NDIS going forwards, hence the governments continued strong and growing support for the program.
Sadly disability is a growth industry. As our population grows, it is realistic to accept more people become disabled, more people will thus join the successful NDIS scheme and more will want to live out of home in a SDA dwelling. The demand will continue to grow.
The demand is there and the demand is real. But please be mindful and true to yourself, “be careful who you elect to listen to and believe”. Especially if they are sales people who are transactional and selling a lot of SDA’s. Their interest is in money grabbing, taking advantage of an excellent and needed product and at your expense.
Investment Grade SDA property
Yours primary focus should be having an interest in the Participant first and foremost.
Then the needs of the Carer groups, followed by the needs of the participants family and lastly your purpose for your investment, in what should be an ethical investment.
When you follow this strategy, you mitigate risk and improve your opportunity for the outcome of your investment.