Mistakes You Must Avoid When Investing in NDIS SDA Property

The National Disability Insurance Scheme (NDIS) is an important initiative that aims to support people with disabilities in order to enable them to achieve their potential and become independent as well as productive citizens. With the NDIS in place, investing in NDIS SDA property could be one of the best ways for you to diversify your portfolio, safeguard against risk, and help those in need.

However, before you dive into this new opportunity or recommend it to others, there are a few mistakes you must avoid when investing in NDIS SDA property. Let’s take a look at the mistakes you must avoid when investing in NDIS SDA properties.

Don’t Invest Just Because Everyone Is Talking About It

Before you invest in anything, you need to know what you’re getting into. While it’s great to see so many people talking about the benefits of investing in NDIS SDA property, you need to understand what is NDIS property investment , how NDIS Property investment works, and how much it will cost you. You need to know the risks and how to avoid them as well as the likely returns. Even if you’re not the type who likes to read a lot, you need to know what to ask the selling agent.

NDIS Property Australia can help you learn about investing in the SDA market. Get in touch now.

Don't Invest Unless You Research The Demand Location

One of the most important things to understand when looking to invest in NDIS SDA property is the demand in any location you’re considering. Your future profit is dependent on the number of people who will be eligible for NDIS funding and the availability of NDIS services in the area.

In addition to determining the demand for NDIS services in an area, you also need to consider the number of NDIS service providers and the proximity of these providers to the people who will be eligible for NDIS funding. It is also important to understand the current supply of NDIS properties already in the area or being built.

Don’t Be Afraid To Ask The Tough Questions

A good sales agent should be able to answer your tough questions regarding the NDIS SDA investment property. Don’t be afraid to ask about locations, types of SDA categories, rent and participants arrangements, how to obtain financing, the future outlook for the market, and so on.

Not only will this help you understand whether this NDIS housing investment is right for you. But it will also help you make a better decision. After all, when investing in a new asset class like NDIS SDA, you need to understand the risks as well as the rewards associated with it.

Don't Expect A Quick Or Easy ROI

Like any other type of property investment, there is no such thing as a quick or easy ROI when it comes to NDIS SDA property. It will take time for tenants to be found, and in many cases, they will need to apply for SDA funding from the NDIS, which can take many months, so don’t expect to have full tenancy ready to go once your property has been built and assessed as an SDA dwelling. Although we recommend you engage the SDA Provider - the organisation who will be responsible for procuring tenants - early on in the process, even before the build has started, you may only have one anchor lined up at the time of property completion. It can then take another month or several months to fully tenant your property as the Provider looks for second or third tenants who will be a compatible match with the anchor tenant.

Even if you invest in these early stages of the NDIS rollout, it may take months to years before you start seeing full returns on your investment.

The good news is that as more and more people receive NDIS SDA funding, you can expect a rise in the potential tenant pool. And, as the NDIS scheme grows and expands into new areas, you will be able to sell your NDIS SDA property for a profit and reinvest in another NDIS SDA property in the same or different location.

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