Tips on How to Invest in NDIS Property

You might be wondering what NDIS stands for and how you can invest in NDIS property. The National Disability Insurance Scheme (NDIS) is a Government initiative that was launched in July 2016. It’s a social insurance scheme to fund costs associated with disability.

The NDIS aims to assist those with disabilities in gaining the necessary support services so they can live more independent lives. To do this, the NDIS provides funding for essential services such as daily personal activities, therapeutic support, help with household tasks, home modification design and construction, mobility equipment, vehicle modifications as well as support for housing, job training, and transport to enable participation in community, social, economic and daily life activities. This article explores further details about investing in NDIS property as it is important to know more about this complex investment market before making your decision.

What is NDIS property?

NDIS property is the ‘Bricks and Mortar’ dwellings that have been assessed as eligible for receiving rental payments once tenanted with NDIS participants funded for Specialist Disability Accommodation (SDA). The type of dwelling required will depend on the needs and requirements as well as the SDA funding level of the tenant/s. NDIS real estate can be owned by a person with a disability (as an owner-occupier), by their carers/SDA Providers and can also be owned by an investor. It can be an apartment, a villa/duplex/townhouse or a house. SDA funding is provided to existing SDA dwellings (Basic and Legacy funded) as well as for New Build dwellings. It should be noted that Basic and Legacy dwellings, which include large group homes are gradually being phased out and will eventually stop receiving SDA payments.

How to invest in NDIS property?

The first thing you’ll need to do is to determine where you’d like to invest and what your budget is. You also should research and be aware of Specialist Disability Accommodation housing supply and demand in any areas you are considering. Other factors you need to take into account is the SDA Design category (High Physical Support, Fully Accessible, Robust and Improved Liveability as this will determine the category of NDIS Participant who can live in the home and the rental returns you will receive) as well as whether you want to invest in a house, an apartment or another type of dwelling, such as a villa or duplex. The location - in particular proximity to required amenities - is an important consideration. You should also keep in mind that you’ll need to be approved for a special type of mortgage to invest in NDIS property if you are going to require financing.

Is NDIS Property a good investment?

The short answer is yes, NDIS property is a good investment because it’s a long-term financial commitment. Real estate is a lucrative investment option, and investing in NDIS property is no different. The return on investment can be substantial. On average, the net return on investment for NDIS property can range from 8-12%. The time frame for seeing a return on investment can vary depending on the type of property you choose, and how long it will take for the property to be constructed and tenanted. NDIS property has the potential to earn you a substantial amount of money.

However, it comes with some risks, although the risk can be lower than other investment options.

Is there any risk in investing in NDIS Property?

There are several risks involved in investing in NDIS property. For example, the risk of vacancy can be higher than for regular residential property. You can reduce these risks by:

Finding a reputable agent who understands the NDIS property market
Knowing what you’re investing in
Future-proof your investment by building above and beyond minimum requirements
Having a long-term investment strategy
Having a financial plan
Manage your expectations

Who can invest in NDIS property and who can participate?

As long as you are a resident of Australia, you can invest in NDIS property.

For participants to be eligible for NDIS property (SDA funding), they must:

Be aged under 65 years old when applying to the NDIS for funding
Have an extreme functional impairment or very high support needs
Meet the SDA needs requirement

Final Words

Investing in NDIS property is a great way to earn a substantial amount of money while helping those with disabilities. Real estate is a low-risk investment option, and investing in NDIS property has the potential to earn you a high return on investment. With these facts in mind, it’s easy to see why investing in NDIS property is a worthwhile investment.

Got any questions? We are here to help