WHAT IS EQUITISDA

You will need to produce identification documentation, and proof of your age. Documents will also be required to show that you are registered with the NDIS and receive NDIS funding including SDA payments. All personal information will be processed securely and in confidence in accordance with privacy laws, with access strictly restricted on a need to know basis. In order to borrow money to fund your purchase price, you will also need to supply documents to your lending professional to meet all EquitiSDA approved financier requirements. This may include documents such as recent tax returns, evidence of income sources including SDA payments, evidence of assets and liabilities, and evidence of residency at the proposed property

Your contribution You will need to fund: • the purchase price for your equity share in the property (which will be 80% or greater of the market value); plus • the costs associated with your purchase, such as conveyancing or legal costs, stamp duty (unless a government concession is available), strata, utilities, rates and tax adjustments. In addition to any savings that you have, you may borrow money to make up your contribution with an approved EquitiSDA lender. You will need to meet your financier’s lending guidelines which includes a credit-worthiness check and loan servicing assessment. You will also need to provide them with support documents

When the property is sold to you, to make it more affordable, the existing owner (referred to from now on as the Equity Participant) will retain an equity share in the property so that you only pay for a percentage of the market value when you buy the property.

The Equity Participant’s retained equity share is the percentage of the listed market value that they keep (as agreed with you prior to you buying the property), which will be up to 20%. You have the right to buy-out their equity share at any time, and you must buy out their equity share after 7 years. For the first seven years (or if you buy out the Equity Participant sooner, then until that buy out date), you share the following with the Equity Participant:

• the property’s net income (this is explained in more detail under ‘Occupying and managing your property’ in section 8 below); and

• any appreciation and depreciation of the value of the property, in both cases, in proportion to your equity shares. Example This is illustrative only and does not represent actual numbers which will depend on your particular circumstances. Your property will involve different numbers which may be higher or lower.

Judy selects a property from the portfolio valued at $1.1m today. She acquires an 80% equity share for $880,000 with 20% retained by Equity Participant. Net SDA income in the first year of ownership (being SDA income less fees and costs) totals $78,600. $62,880 is paid to Judy (being 80%) and $15,720 is paid to the Equity Participant (being 20%). The market value of the property may increase or decrease over time and both Judy’s and the Equity Participant’s equity shares change in value, accordingly, as illustrated below.

Important

The EquitiSDA Program is not suitable for everyone. We strongly encourage applicants to seek independent legal and financial advice before signing any agreements. This program involves property ownership obligations, including responsibility for mortgage repayments, maintenance, and compliance with SDA and NDIS standards.