Andrew is an accountant, and met Mike interested in building a duplex project for on-sale, with an option to make $100,000 - $200,000 in net profit, as thatâ€™s Michaelâ€™s speciality.
Mike and Andrew got to know each other well first through a strategy session before deciding to move forward.
Andrew learned of the NDIS and Specialised Disability Accommodation during that session.
Andrew decided that creating a passive income was for him. Andrew and Mike began planning an SDA Duplex project near the waterfront at Bargara â€“ This was the beginning of our Invest Property Selection Process.
We found a large block of land that stacked up very well and signed off on land and build contracts. Horizon ensured independent experts oversaw the contract exchange, and insisted that Andrew obtained the right advice before signing.
We facilitated Soil tests, Surveys, engineering approvals, council approvals and SDA Certification.
Together we built a pair of Duplexes â€“ One with 3 Bedrooms at the Fully Accessible level and a 2 Bedroom, Improved Liveability unit.
Getting it built & SDA certified was relatively straight forward. We have a duty of care to our clients using our strict due diligence program to minimise any risks â€“ no-one likes nasty surprises.
Settlement was a smooth transaction, we employed an independent hand-over builder and ensured that the SDA certificate of Occupancy was granted.
That was the easy part.
Let us share with you some pros & cons. As a whole, the process went well, and we discovered opportunities to improve in order to fast track the program.
As an SDA Provider, we are all pioneering and creating new systems for the benefit of Investors, Participants & Providers.
Things will go wrong. The participants have choice & control of their own destiny, so as an investor & a provider we recommend that you have empathy & and open mind throughout the program. Horizon SDA Care have the motto â€œYour choice, on your terms, at your paceâ€.
Horizon SDA has a Participant placement program that is unique in many ways. The program made finding the participants easy.
Without sharing all our secret sauceâ€¦ we had 13 interested Participants apply and 4 care providers interested in taking care of participants in the house.
After careful consideration, our Participant placement program (in collaboration with several providers) proudly chose 3 participants to move in. These people now have to opportunity to live more independently with the assistance of a 24 hour carer.
The next challenge was the application & approval of their SDA Funding (This is the part of their NDIS Plan that pays their rent).
One of the challenges we had was with our investors, Andrew & Angela. Because the NDIS is so new, Local Area Co-ordinators, Providers and support Co-ordinators were new to it also, and unable to provide us an accurate funding amount for each participant.
This created uncertainty and our investors found it difficult to commit to an unknown return. We negotiated a cashflow solution so the participants could move in using their rent contribution (25% of their pension) until their SDA funding was approved by the NDIS. This allowed for some cash-flow.
At present the NDIS are understaffedÂ â€“ there are waiting lists of participants wanting to live in SDA. This creates a processing bottleneck and an approval â€œlag timeâ€ that could range up to 6 months, or in exceptional cases, longer depending on individual participant circumstances.
This caused major frustration to the investor, and to us!
We are sharing this story with you as it was one of our first placements, and we rented it relatively quickly, but there will always be additional and unusual challenges when working with the disability sector and a large government program like the NDIS.
If you are an investor considering investing in SDA, it is extremely important that you deal directly with an SDA Provider and a fully licenced Real Estate agency with a trust account. Insist on receiving Licence numbers and their SDA Provider number, and a copy of their SDA audit.
Each home needs to be custom built, ensuring it meets Participant requirements in line with their needs. SDA homes should never be purchased from a stock list. At Horizon SDA every one of our homes are unique and built in high demand locations.
At Horizon SDA we can confidently state that weâ€™ve created a Participant Placement Program that works. We engage providers & certifiers for constant feedback, which we use you improve our program and raise the standard, liveability and attraction to participants of our houses.
Rest assured when you engage Horizon SDA youâ€™re in good hands.
Wide Bayâ€“Burnett is a region of the Australian state of Queensland, located between 170 and 400 kilometres (105 and 250 miles) north of the state capital, Brisbane. The area’s population growth has exceeded the state average over the past 20 years, and it is forecast to grow to more than 430,000 by 2031. It is the subject of the Draft Wide Bayâ€“Burnett Regional Plan, which aims to facilitate this growth while protecting over 90% of the region from urban development.
Bundaberg Is known for Bundaberg Rum, and the Bundaberg Distillery offers museum tours and tastings. Bundaberg Botanic Gardens is home to the Hinkler Hall of Aviation, dedicated to solo long-distance pilot Bert Hinkler. Nearby on the coast is Mon Repos Regional Park, home to sea turtles, and offshore is Lady Elliot Island, part of the Great Barrier Reef.
Hervey Bay is widely known as a site for observing humpback whales. Whale-watching boats operate during the July to November migration season. It’s also a hub for tours to nearby Fraser Island, which has beaches and features a rainforest habitat for dingoes and other wildlife. A waterfront esplanade links the city’s marina with beaches offering calm waters for swimming.