EPISODE 248 - AFR article: 'Investors hung out to dry'

In this episode, Minh & Debbie discuss an article published in the Australian Financial Review on 8th July regarding a fund manager platform + wealth manager's joint partnership with numerous failed SDA funds with 14 different 'SDA homes' in the Melbourne west region. Below are the links to the articles released this week online.AFR Article: 'Investors hung out to dry' as NDIS housing schemes failAFR Article: NDIS housing scheme firm forced to refund fees for 'lack of service'About 18 months ago, we published a podcast on our concerns on the aggressive 'spruiking' of SDA capital raising by financial advisor stockbrokers who were trying to "get in on the action" so to speak. Now that this new article is public knowledge, we can shout their names - DOMACOM & ASR WEALTH (grrrrr). We raised some red flags at the time, and hence why today in this article, we are doing a follow up on the fallout of these managed funds which raised money to invest into 14 SDA homes within "one suburb" (YEP, YOU HEARD IT RIGHT!) LOL It didn't help that these investments occurred about 4 years ago, and that the land title registration were delayed by 2 years. With these houses now for sale (aka distressed sales) we have to wonder how on earth these 4B/2B/2C SDA homes      (which assumes one bathroom to share with 3 HPS/FA participants) will even attract SDA participants to live in these dwellings. Such poorly designed layouts will not lease properly, plus SIL and SDA providers will reject these designs as they are not fit for purpose. We fear that the realistic outcome will be only one participant SDA homes (at best), or leased out to the normal residential market at $600 to $700 per week in rent (at worst). Whoever comes along next swooping in to buy, remember these words "BUYER BEWARE".Now, back to DOMACOM and ASR ... did they just forget the fundamentals of "diversification" & forget the old saying "don't put all your eggs in one basket". Damn, for a bunch of suits in Sydney who work in wealth management, they sure did drop the ball big time, and did not follow the SDA advice given at the time from the experts. As we keep saying in many episodes, one cannot suceed in SDA investing "off a spreadsheet" and then expect it to work. Also do not expect to achieve maximum yields. This is a high risk proposal if one does not follow the rules of engagement on the playing field i.e have one ensuite per bedroom. DOH!!!SDA RESEARCH REPORTShttps://ndis.property/reportsSDA MASTERCLASShttps://ndis.property/eventsCONTACT:Please feel free to call us on 1300 254 397 or email us on [email protected] us Fan MailNDIS PROPERTY AUSTRALIA:Our team conducts thorough research on Specialist Disability Accommodation (SDA) and provides appropriate technical advice through premium and strategy-based solutions. We also use complex feasibility calculation spreadsheets to help investors understand the expected annual income of an SDA dwelling, the timeline stages of construction of their property, as well as revealing the hidden costs. By staying up-to-date with the latest SDA data and pricing payments information, we help clients make better-informed decisions and achieve their investment goals.FOLLOW US:LinkedInInstagramFacebookCONTACT:Please feel free to call us on 1300 254 397 to talk to one of our friendly staff, otherwise,  just pop on over to our website to find out more.For any podcast related queries or suggestions, please contact our podcast team via [email protected]