What is a NDIS Property Investment?
In addition to personal care, nursing and daily individual support, the NDIS caters towards partially paying the costs of medium to long-term accommodation, including specialised accommodation for participants who require purpose-built facilities to meet their needs. The Government pays for the rental costs of these facilities. These rentals range from 10% to 15% of the total build costs, depending on various factors, including the location, demand/supply of housing by the participants, type of dwelling etc.
NDIS Property Investment refers to the process of investing in residential properties that are purpose-built or modified to be Specialist Disability Accommodation (SDA).
The NDIS Property Investment model allows investors to acquire properties specifically designed to cater to the needs of individuals with significant and permanent disabilities. These properties are intended to provide safe, accessible, and supportive living spaces for NDIS participants who require specialized housing.
Key points about NDIS Property Investment:
SDA Eligibility: To be eligible for NDIS SDA funding, a property must meet certain design requirements and be enrolled with the NDIS as an approved SDA dwelling. SDA properties fall into different design categories (Improved Liveability, Fully Accessible, Robust, or High Physical Support), depending on the level of support and complexity required by the residents.
SDA Funding: NDIS participants who qualify for SDA funding can use this funding to cover the cost of living in an SDA property. The funding assists with the rental costs associated with their specialized accommodation needs.
SDA Provider Registration: Investors who wish to enter the NDIS Property Investment market must have their properties registered as SDA with the NDIS. This involves meeting specific criteria and requirements set by the National Disability Insurance Agency (NDIA).
Income Stream: NDIS Property Investment can provide investors with a reliable income stream through rental payments from NDIS participants who reside in the property. The SDA funding covers the rental expenses for the participant, ensuring a stable income for the investor.
Impact and Social Benefit: NDIS Property Investment contributes to the provision of suitable and accessible housing for people with disabilities, positively impacting the lives of NDIS participants and promoting social inclusion.
It's important to note that the NDIS Property Investment market is subject to government regulations and price limits set by the NDIA. Investors should carefully consider the responsibilities and obligations associated with being an SDA provider and ensure compliance with all relevant laws and regulations.
As NDIS policies and guidelines may evolve over time, it's essential to stay updated with the latest information from official sources and seek advice from financial advisors or experts experienced in disability housing and NDIS property investment.
The gross yields are relatively higher for these investments. Here are some scenarios where we have shown how gross yields can be calculated for these properties.