In today’s investment landscape, specialist disability accommodation (SDA) presents a unique and promising opportunity. Backed by the National Disability Insurance Scheme (NDIS), these properties are not only a socially responsible investment but also offer attractive financial returns.
Why Invest in NDIS/SDA Properties?
- High Rental Yields: SDA properties often yield higher rental returns than standard market rates, making them an appealing choice for investors.
- Stable Long-Term Tenancies: Designed for individuals with complex disability support needs, these properties typically secure longer tenancy agreements.
- Government Support: The NDIS scheme, including various funding structures, adds a layer of security to your investment.
Financial Structure Explained: Each tenant contributes to the rent through:
- Fair Rent Contribution: This is 25% of the base disability supplement, paid fortnightly via their pension.
- Commonwealth Rent Assistance: Also paid fortnightly by the tenant through their pension.
- NDIS/SDA Payment: Outlined in the NDIS/SDA Schedule, this is paid quarterly in arrears by the government.
Market Insights:
- Current Pricing: As of November 2023, typical NDIS properties range from $800k to $950k, with annual returns around $190k.
- High Demand: These properties are often sold off-plan, indicating a robust market demand.
- Investment Process: For self-managed super funds (SMSF), a two-step process is involved, including a construction phase and final purchase.
Financing Options:
- Up to 90% funding for NDIS properties.
- SMSF: Up to 80% funding, with a 35% deposit requirement for construction loans.
Future Investment Strategy:
- Consider interest-only (IO) repayments for the first five years to facilitate saving for future NDIS or other property investments.
Let’s explore how investing in an NDIS property can diversify your portfolio and contribute to a socially responsible cause. Get in touch to discuss more!