SIL Homes for Investors
How the numbers might work?
If we may use some current market fundamentals to offer a generalised view on how your investment might play out for you.
Land in regional locations around $200k
Construction of the home around $450k to meet NDIS requirements
Total could be $650k
Built to accommodate 4 x participants
Head Lease with Care Provider who manages the participants at :
- Around $280 pw / room = $1,120 pw
- OR up to around $350 pw / room = $1,400 pw
Yield around 7% net or around 9% gross
What is a SIL Home?
Independent Living Homes otherwise known as SIL Homes are built to accommodate people with disability who are funded under the NDIS. Looks and feels just like the home next door, only with slight modifications to suit Participants with disability.
There are thousands of Participants wanting to live independently, unable to find accommodation in a shared home or other rental property.
A SIL home offers Participants the opportunity of living independently, in what is ‘sadly’ a high growth industry. As the population grows, so does the amount of people with disability, who are joining the NDIS.
SIL (Supported Independent Living) refers to “participants requiring supervision or assistance with daily tasks, to help participants live as independent a life as possible, whilst furthering their life skills.”
SIL Homes is also referred to as Independent Living Options or ILO for accommodation purposes.
Carer Groups desperately need SIL homes, to accommodate their Participants under the same roof.
This is YOUR investment opportunity!
Ask us how and where??
CURRENT SITUATION
Right now, and into the foreseeable future, there is an incredible and dire shortage of rental property on the market – with Residential Vacancy rates at all time historical lows. Meaning strong rental competition in the normal market. The result is that Participants are simply unable to find a place to call home – and to live independently.
SOLUTION
Their Problem = Your Opportunity
This is is where you come in, put your hand up become an Investor to meet a demand and earn above market yields (we aim for 7% yield, NET of fees, returns) with capital growth, just like the home next door.
Looks and feels just like the home next door.
“What is the point of being alive, if you don’t at least try do something remarkable?” … Janet Morris
Massive growing Demand
SUPPLY EXCEPTIONALLY LOW!
Demand for SIL housing is significant, tragically growing year on year, as more people with disability join the NDIS and get their funding. The demand for SIL homes is growing at 17% per annum. Under the NDIS, the average support for a SIL participant is $324,900.
Meaning there is funding within their packages for Rent.
With just over 550 million participants on the NDIS today, thousands upon thousands already qualify for NDIS Support and Rental Assistance.
Yet, there is almost nowhere for a participant to rent! This is so sad.
To service this growth industry, there is a strong emergence of SIL Providers (caregiver agencies), looking after people with disability under the NDIS, who daily seek out accommodations for the participants under their care.
Your Opportunity
Strong Rental Yields + Risk Mitigation + Capital Growth opportunity.
Your investment opportunity is to invest in a SIL Home. Our system will engage a SIL Provider for you, who will become your tenant, they sign a 3 or 5 year, renewable Head Lease agreement on your property. Same rent paid to you whether they accommodate 1 x Participant or multiple Participants.
An added advantage to you is risk mitigation during this period, having one lease agreement in place, for your negotiated period of time, linked to either CPI or agreed rental increases.
Advantage to a SIL Provider is having somewhere for them to accommodate their Participants and run their business from, with Rental stability during the Head Lease period.
Win-Win for Participants, their Families, Care Providers and you the investor.
Who manages the SIL Home?
The property is managed by a rental manager we will introduce you to whose role it is, to source a SIL Provider and negotiate a Head Lease Agreement with them over your property. They will manage the home and collect, then pass on the rental income to you, at standard rental management rates.
The Head Lease Agreement the SIL Provider signs could be a 3 or 5 year lease, that includes rental increases for you during this period and could even include automatic renewals for a further 3 or 5 years.
Risk Mitigation
The SIL Provider is responsible for the rent, not the participants or the NDIS. The Provider collects rent from the SIL’s NDIS funded package, which the SIL Provider accesses, when placing their participant. Not your concern if one or 4 participants in the home. Your incentive is the massive demand for SIL Home accommodations.
What this means to you is stability of your tenant and an almost guaranteed income stream on the investment you have made, which is substantially above market yield rates and of course include any capital growth you achieve.
Return on your Investment
Banks love investments which are positive in cash flow, making it easier for you to secure your next and next investments.
When deliberately using the power of Leverage, this strategy gives you the ability to invest again and helps accelerate your goal to take control of your own financial destiny, when you grow your investment portfolio.
It is how you utilise and reinvest the yield and equity, where you will maximise your ROI.
EXAMPLE :
Leveraging into your investment; putting down a 10% deposit on a property say $650k. Would you agree that you have only physically invested the $65k?
If yes, excellent, let’s move on.
Now this $65k invested, is returning you around $58k pa, this means your $65k is working hard for you at around 89% pa. Within around 14 months, you could have gotten back your original $65k you invested.
Now you are sitting with a cash cow in your hands for *free. Yes a very simplistic helicopter overview to explain how the numbers might work, but it sure helps to achieve insight into how one can readily accelerate one’s own financial planning goals through astute property investment strategies.
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Right now, there are thousands of participants wanting to live independently, unable to find accommodation in a shared home or other rental property.
A SIL home offers participants the opportunity of living independently, in what is ‘sadly’ a high growth industry.
SIL (Supported Independent Living) refers to “participants requiring supervision or assistance with daily tasks, to help participants live as independent a life as possible, whilst furthering their life skills.”
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