If you’re keen to get an investment property under your belt, but want to thoroughly consider your options first, then you should thoroughly consider an NDIS property as your next investment. Specially designed to provide a home for members of the Australian community living with permanent and significant disability, specialist disability accommodation (SDA) presents an investment opportunity as unique as its social impact.
With unrivalled outcomes, we explain why it’s worth investing in the NDIS property market.
NDIS property investment return potential
Property investors inherently want to understand the return potential of their proposed investment. NDIS properties receive above-average market rents thanks to backing from the Australian government. High rental yields of between 10-15%pa are not uncommon from specialist disability accommodation.
Specialist disability accommodation will always be required for as long as there are members of the Australian community with disability. Therefore, SDA properties also retain solid capital growth potential.
NDIS housing investment is uncorrelated to any other property market
Building a robust investment portfolio, including a property portfolio, includes the practice of diversifying your investments. The SDA market is uncorrelated to the traditional property market, meaning that its income yield and capital growth potential will not shift in the same direction as a traditional investment property or any other investment property, throughout its lifetime.
SDA housing investment is therefore a unique offering, previously unavailable to private investors in Australia.
SDA housing is in high demand
Before making any property purchase, it’s understandable to want to ensure that your selected property is going to be in high demand, now and into the future. Specialist disability accommodation is relatively new to Australia, with the demand for specialised housing continuing to outweigh the supply.
Investing in the National Disability Insurance Scheme makes a lasting impact on the community
Prior to SDA homes becoming available to eligible NDIS participants, the housing options for those with high support needs and extreme functional impairment were dismal. It was not uncommon for an NDIS participant to be shifted to a nursing home prematurely, as they were the only available facilities that could cater to people with high support needs.
Thankfully, SDA participants are able to access a level of independent living previously unattainable. Finding suitable specialist disability accommodation often means finding a forever home — providing NDIS-approved tenants the opportunity to live independently is one outcome a standard investment property simply can’t surpass.
Before you purchase approved SDA housing, ensure that you have a finance solution that makes your NDIS property investment a reality. Contact NDIS Loan Experts to access tailored finance and expert guidance when it comes to borrowing to purchase an NDIS investment property.
More to know on investing in the NDIS sector
Requirements for investing in SDA
Each SDA dwelling needs to be registered in the SDA scheme by a registered SDA provider.
NDIS tenants have SDA funding within their NDIS plan. The SDA payments are made to SDA providers as well as the rental income, which is then passed onto the property owner. SDA funds aren’t paid to landlords directly (unless the landlord is a registered SDA provider).
Who manages an NDIS SDA property?
The SDA provider will be responsible for advertising the property, managing compliance and vacancies. A specialist property management firm can help to manage the administration and tenancy agreements.