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Purchasing an NDIS Property Investment Through an SMSF

Investing in Specialist Disability Accommodation (SDA) and NDIS Housing offers a unique opportunity to make a significant impact while achieving financial goals. However, navigating the complexities of this specialised investment through an SMSF can be challenging. This is where a single contract approach for NDIS property investment can simplify the process and keep things compliant for your SMSF.

Understanding Single Contract NDIS Property Investment

When it comes to financing and purchasing property, the nature of the finance agreements means there are two contracts involved when purchasing a house and land package; one for the property build and one for the land. Unfortunately, when it comes to purchasing property through an SMSF loan, superannuation law states there can only be a single contract used to acquire an asset.

But don’t worry, at NDIS Loan Experts, we solve the single acquirable asset rule by entering into a two-part contract to purchase the land and engage your builder on your behalf, while you enter into a one-part contract with us — keeping the house and land purchase completely compliant! 

Expand Your SMSF Investment Opportunities

The strict superannuation laws regarding limited recourse borrowing arrangements (LRBAs also known as SMSF loans) are in place to protect your fund’s assets — for example, if you borrow money to purchase a property through super and then default on the loan, the LRBA ensures the lender can only repossess the property you purchased with the loan, and cannot touch any of your other SMSF assets.  

While these regulations do a great job of protecting superannuation assets, they can restrict your investment opportunities by limiting purchases to a single asset, which means house and land packages (including NDIS property) is traditionally not an investment option for SMSFs. 

Purchasing Property Through An SMSF

How NDIS Loan Experts Facilitate Single Contract Investments

At NDIS Loan Experts, we specialise in providing tailored finance solutions for SDA and NDIS Housing investments. Our team of experts have been building and sharing their knowledge for over 15 years, focusing on niche lending for commercial, personal, corporate and SMSF borrowers. 

The single contract process is as follows:

  1. The SMSF chooses the land and builder (we can help with this if you’d like guidance on the best areas to build SDA property and the best SDA builders). We take care of the finance and move forward with the conversion of the house and land contract into a legally compliant one-part contract.
  2. The SMSF enters into the one-part contract with us by paying a deposit. We purchase the land and engage the chosen builder to construct the NDIS property.
  3. Once built, the SMSF simply pays us the balance with the SMSF loan that we arrange for you. The property is then transferred to the SMSF with a single contract ensuring it complies with superannuation law. 

Partner with NDIS Loan Experts for Your NDIS Property Investment Through Your SMSF

Choosing to invest in NDIS properties is not just a financial decision but a commitment to making a positive impact on the lives of others. Investing in NDIS property through an SMSF allows you to diversify your retirement portfolio with a unique property investment that can potentially provide rental returns much higher than those of traditional residential investment properties. 

At NDIS Loan Experts, we are dedicated to providing expertly tailored finance solutions to support property investment goals. Our team is here to guide investors every step of the way.

Ready to start your NDIS property investment journey? Contact NDIS Loan Experts today to learn more about our tailored finance solutions and how we can help you achieve your investment goals.

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