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SIL Houses for Investors

High Yielding Investment Property with Capital Growth Potential

High yield investment property

Looking for that something with a different approach? High yields and capital growth potential. Oh, did we mention 3 or 5 year head lease agreements in place offering you an element of certainty.

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Current Situation

Massive and growing demand for accommodation for funded Participants under the NDIS who want to live independently.

Massive problem – lack of supply of rental property Australia wide!

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What is a SIL Home?

High Yield Investment Property

SIL Houses / Independent Living Homes

Looks and feels just like the home next door.

Aside some minor modifications to suit a lower level of disability, SIL houses are just like the new built home next door.

CURRENT SITUATION : Right now, and into the foreseeable future, there is an incredible and dire shortage of rental property on the market. Residential Vacancy rates are 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 : This is where you come in and put your hand up to become an Investor to meet a demand and earn above market yields (we aim for 6% – 7.5% NET of fees, returns) whilst also achieving capital growth, just like the home next door.

Massive and Increasing Demand.

The demand for SIL housing is already significant and 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.

With just over half a 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 tragically 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.

You Opportunity

Your investment opportunity is to build a SIL Home, and our system will engage a SIL Provider who will become your tenant, then sign a 3 or 5 year, renewable Head Lease agreement with you.

The 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.

The advantage to a SIL Provider is having somewhere for them to accommodate the participants under their care, and run their business out of, with stability during the Head Lease period.

Win-Win for Participants, their Families, Care Providers and you the investor.

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.”


NDIS Property

NDIS Property for Investors

“What is the point of being alive if you don’t at least try to do something remarkable?”

JANET MORRIS

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 3 x participants
  • Head Lease signed with Care Provider who manages the participants at :
    • Around $280 pw / room = $840 pw
    • OR up to around $350 pw / room = $1,050 pw
  • Yield 7%

Who manages the property?

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. It is in the Providers interest to keep the home full, and their 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.

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Our process and services include :

Return on your Investment

Banks love investments which are positive in cash flow, making it easier 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, where you will maximise your ROI.

When leveraging into your investment and say you put 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 $43k pa, this means your $65k is working hard for you at around 66% pa. Within a two year period, you could have gotten back your original $65k and 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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Let’s work together on helping you deliberately take control of your own Financial Destiny.

Helping you grow and secure wealth through astute investment into property.