Emelitta Da Silva: 0:07

Welcome to the NDIS property Australia podcast. My name is Emelitta Da Silva. I'm one of the investor relations managers at NDIS Property Australia. And I'd like to welcome you to our very first podcast. I'm here with our Director Minh Le. And today he is going to explain to us the ins and outs of an NDIS SDA property investment. Take it away, Minh.

Minh Le: 0:32

Thank you, Emelitta. This is so amazing, wonderful. First time ever, I've been dreaming about this, wishing about this idea of doing a podcast for a long, long time, like a year and a half, two years now. And we're here now with a wonderful team here in Brisbane, just working together, all 11 of us trying to figure out how to deliver more SDA properties in Australia for the needy and the needy being

Emelitta Da Silva: 0:57

Our participants?

Minh Le: 0:59

All the participants.

Emelitta Da Silva: 1:00

All the participants.

Minh Le: 1:01

Yeah. So, Emelitta, what do you do here in NDIS Property Australia?

Emelitta Da Silva: 1:06

So I would say the main focus of my role is to educate our investors of the ins and outs of what this investment really means. Because at the end of the day, they're not just buying simply a house, these are houses built for the participants of the NDIS. So there's a lot of education that goes into that, because it is quite a complicated space. So yeah, educating.

Minh Le: 1:29

And what kind of challenges do you find, being talking to new investors, who are trying to understand more about the SDA market?

Emelitta Da Silva: 1:38

Well, I think the first thing to think about is they've heard about this investment and they've heard, you know, 25% returns, and they're definitely going to get that. So I think the biggest challenge, not so much a challenge, it's just an educational piece on, on educating them about how the funding actually works for these investments, because it's not as simple as, okay, I buy a house in Townsville, and I'm going to get a 22% return straight up. Unfortunately, it's not as simple as that. So I would say that that's the first conversation piece that we go into.

Minh Le: 2:15

There are so many different topics when it comes to SDA investment property. And we're not going to spend any great deal of time today talking about any one of these topics, but the topics will range from location, demand supply, lending from banks or non bank lenders for the property, providers, meaning who to use for a housing provider, and in turn, indirectly the SIL provider who is also known as the care provider, the design, the specifications, what's involved in the design of the house, is it going to be a high physical support – HPS also known as – house, or is it a fully accessible house? Or will it be a robust design category home or improved livability? And Emelitta that's just four of the design categories. We'll talk about the products and covered dwellings as well.

Emelitta Da Silva: 3:12

Do you mean in terms of houses and apartments, villas? Yeah, so there's heaps of different combinations that you can get; a lot of what we have currently on our stock list is houses. So your typical four bedroom, three bedroom houses, but we also have a lot of upcoming developments in different areas across all of Australia. Some of these are apartments, apartment living, or villas, which are very appealing because you can have one participant in there, so there's a bit more privacy. So there's lots of combinations that are appealing for different types of participants. So we will talk you through that when you speak to us.

Minh Le: 3:56

And for those who don't know what a villa is a villa is like a townhouse, a low set townhouse, and a small version of a house. So that's what a villa is. And the villa is normally a two bedroom, one bathroom, one kitchen, one car garage, low set, 150 square metre, internal and external area dwelling, and you normally find a villa in batches or bunches of three or four in one location at a time. And this makes it easier for the care provider to provide service of care amongst one location with various care carers on site. So yeah, that's just an example as well. Another topic of discussion in the future podcast will be tenancy mix and expectations of yields. Emelitta, what is your experience so far with regards to tenancy mixes?

Emelitta Da Silva: 4:46

Yeah, so that is a long answer to that Yeah. So we get a lot of inquiries every week. And we're question, but very simply, if I give an example of let's say a HPS property, a HPS home can have HPS tenants, fully accessible tenants, as well as improved livability. And when people build these properties, a lot of the time they come in doing this podcast to help alleviate the I guess, what's with the idea that they're going to get all high physical support tenants. But what we need to consider is the demand in that specific area, and how the demand in that specific area, what type of participants are in that area, as well as the fact the word inquiry, right the the time we spent educating and that having three people in a property that high physical support is probably not so realistic, given the fact that there's generally generally one carer per property. So it's not impossible. But one thing to bear in mind is the types of tenancy mixes that are actually more likely, it's generally not taking people through the process, of what's involved, and going to be three HPS tenants, it's probably going to be somewhere in the middle. And when you speak to us, we can talk you through that, as well as provide you with a feasibility example which illustrates it to you. On top of we hope this podcast can really help people better understand that, it's, you have to understand how like what tenants can go together and what is likely, for instance, in a robust home, you're, you're generally not able to have no, you're not able to have any other tenants aside from robust people. And we can go into the breakdown of what high physical what is the pros and cons of the SDA market as an investor, and support is, what robust is, what improve livability is, and what fully accessible is in another podcast. But I suppose the most important thing to note is that there's a lot of education that needs to come into this, which is why we've created the podcast. then also break it down into more specific areas and design Yes, definitely.

Minh Le: 6:37

And absorb it all, get their finance ready, then to proceed, you know, and even still, they need the help of a a categories and dwelling types. And all those kinds of things. It's a very detailed process, I guess. Yeah. Normally, our builder, who knows what they're doing an SDA assessor, a customers take two to three months to absorb it all, don't provider, a lender, and consultants like us, very important there. But again, this is just a really intro recording today, just explain who we are what we do. And yeah, we'll we'll cover more detail about all these different topics later you think, Emelitta? on in future podcasts for sure. But Emelitta, anything else you want to add, before we finish up today.

Emelitta Da Silva: 7:47

I think the only thing I would add to that Minh is yes, I'm really happy that we're putting this podcast together. It really assists in the educational piece and to fill any knowledge gaps for our investors. At the end of the day, you know, feel free to contact us if you wanted to discuss your specific circumstances and how we might be able to help you with your investment.

Minh Le: 8:10

Thank you so much, everybody. We will get back to you soon in our next podcast the next next few days.

Emelitta Da Silva: 8:15

And please give us a five star Google review and say that I was awesome.

Minh Le: 8:19

Yes, thank you very much.

Emelitta Da Silva: 8:20

Thank you.

Minh Le: 8:20

Bye bye.