SIL Homes

Supported independent Living Homes

What is a SIL Home?

Supported Independent Living homes are a new design NDIS home to cater for a massive 400,000 potential participants looking for SIL accommodation.

This is a growing sector and significantly way larger than SDA Homes.

SIL refers to “participants requiring assistance with, or supervision of daily tasks, to help participants live as independently as possible while also developing their life skills.”

SIL’s are most commonly used in shared-living situations, for people who have a lot of support needs needing help almost all of the time at home. Best described as a “specifically designed group home to meet Liveable Housing Australia guidelines that include key features that make life easier for people with disability.”

Being purpose built with the participant in mind, it will look and feel just like the house next door and include some modification fit for purpose.

Click here to read more on “Supported Independent Living Operational Guideline” . And click here to review the Liveable Housing Design Guidelines

SIL Home
Supported Independent Living homes

The demand and your Investment Opportunity

The demand for SIL housing is already significant and growing yearly. There were 11,283 people enrolled in SIL as of March 2018, by March 2021enrolment grew to 24,928 participants, growing at 17% per year. Under the NDIS, the average support for a SIL participant is $324,900 stated in the Quarterly Report to the Disability Minister.

There is a major emergence of SIL Providers (care giver agencies) looking after people with disability under the NDIS. The benefit of these providers of having their participants all living under the same roof – means more income to their business and savings in their pockets. SIL Providers are ‘crying out for’ SIL Homes … hence our call to answer their need.

What is in it for you?

How you benefit is NET rental yields of 7% – 8%.

We are budgeting on an income of around $42k to $45,000 per annum, which equates to around $800 per week.

The property value we focusing on is $500k to $650k. Determined by location, lot size etc.

Who manages the property and rental agreement?

We will negotiate Head Lease agreements on the home with SIL Providers who want to run their ‘business’ out of your SIL home to lower their operating costs and attract more clients. The lease will be 3 to 5 years with an agreement that the SIL fills the home with their participants on an agreed annual rental basis. There is no SDA payments from the NDIS on these. The SIL provider is responsible for the rent, not the participants.

The property manager will still oversee and manage the property and the lease agreement on your behalf and ensure you receive your monthly income.

Risk Mitigation

Compared to a SDA home, which does not suit 80% of investment inquiry because those investors want a guarantee for Rent or confidence in Participants and we all know where there is a guarantee or certainty there is always a lower return on investment. (See why we would avoid SDA Rental guarantees here)

We have reversed the concept of a guarantee, placed the financial commitment on SIL providers who in turn if they want to secure a home to run their SIL business out of, then they need to commit to a 3 or 5 year lease agreement with us and in turn then with you the investor.

Meaning you the investor does not have to worry about finding tenants as the home will be fully rented out from the beginning, and your fixed rent has been agreed upon upfront.

The SIL provider now wears the risk and you the investor achieve around a 7% return of investors ~net of fees!

Building Cost

Build costs are below a SDA home as there are only minor modifications required when building a home to accommodate people with disability under the Supported Independent Living model.

Meaning your entry into the market is lower.

It is also easier to secure a loan.

And because it primarily looks and feels just like the home next door, becomes an asset that is easier to sell to a SIL provider or an owner who wants to live there.

Location

Initially our focus is in Queensland where we have teamed up with a developer who has designed the SIL Home and who will also arrange the lease agreements with the SIL providers.

Summary

Your opportunity to secure a risk mitigated investment property, in a wider choice of locations within QLD, at a lower entry into the market and lower build cost whilst securing around 7% after expenses yield. Oh, and in a sector of the property market with a very high demand and almost no supply. Being in recognised suburbs you will also achieve capital growth on your investment.

Is this type of Investment of interest to you?

As an investor, if a SIL home meets your investment strategy and level of investment comfort, reach out to us to share a more in-depth discussion, answer your questions and discuss the where to from here, end-to-end service that we offer you our client in helping you grow and secure further wealth through an astute investment strategy.