NDIS SDA Investment Properties
Earn up to 14% Rental Income (Gross) Underwritten by the Federal Government
Seems almost unbelievable, doesn’t it?
Introducing a groundbreaking endeavor led by the federal government aimed at offering top-notch housing for individuals with disabilities through the national disability insurance scheme (NDIS). This presents a compelling opportunity for investors in search of substantial long-term rental returns paired with enticing growth prospects—a truly winning combination!
The National Disability Insurance Scheme (NDIS) was introduced by the Australian Government in 2016 to enhance the well-being of disabled Australians. Presently, the government estimates that approximately 4.4 million Australians are living with a disability.
A crucial aspect of the NDIS is the Specialist Disability Accommodation (SDA) program, which focuses on housing designed to meet the needs of individuals with high support requirements or functional impairments.
Regrettably, there is a significant shortage of suitable accommodation, creating a substantial demand for the establishment of more suitable dwellings. Consequently, the government has reached out to private investors, enticing them with above-average market rents and extended tenancy periods. Although acquiring an NDIS property involves navigating through several requirements, the current high returns make it a compelling investment option for property investors.
The Things You Should Know About an NDIS SDA Investment Property:
Investing in Specialist Disability Accommodation demands a level of due diligence comparable to that of other real estate ventures. Although NDIS properties may appear attractive with promising returns, it’s crucial to acknowledge the inherent risks in any investment, emphasizing the necessity of thorough research before committing to decisions. In addition to conventional due diligence practices like securing home loan pre-approval, conducting property inspections, and ensuring adequate cash flow for both personal and investment needs, understanding the unique prerequisites for NDIS property certification is paramount. Delving into these specific requirements ensures compliance and mitigates potential complications.
Furthermore, prospective investors must scrutinize the geographical aspect, ensuring they choose a location with robust demand for such accommodations. This involves assessing whether the area lacks an ample supply of NDIS-compliant properties or if it boasts a high concentration of NDIS participants, indicating strong demand.
Taking the analysis a step further involves considering the challenges faced by potential tenants in securing suitable accommodations within the chosen area. By meticulously assessing each tenant’s specific needs, investors can tailor their property to align with individual requirements, thus enhancing the property’s suitability for prospective occupants.
There are various methods available for acquiring an SDA property:
- The initial method involves adapting a conventional property to meet the required SDA standards. While this option is more intricate compared to the others, there are specialized building contractors and architects who offer tailored services for modifying homes to comply with SDA standards. SDA advisory organizations can also provide guidance to ensure that you take the right steps. If you possess an existing property in an area where NDIS properties are in demand and have the financial resources for renovation or modification, this may be the optimal choice.
- The second option entails purchasing pre-approved SDA housing that is already constructed and equipped to accommodate NDIS participants. Utilizing an SDA provider and a specialized real estate agent can assist in locating suitable properties. However, the supply of existing properties is relatively limited, making it challenging to find the right one.
- The third and most prevalent option is to acquire a house and land package specifically designed as an SDA property. This option is likely the most straightforward way to purchase an SDA property, and there is a high demand for newly built properties due to the limited supply of existing NDIS housing.
By exclusively focusing on regions demonstrating robust capital growth fundamentals, SDA presents investors with the potential for yields ranging from 10% to 20%. Supported by the National Disability Insurance Scheme (NDIS), our investment properties offer high-quality, disability-friendly housing, surpassing market averages in terms of returns. This presents a mutually beneficial scenario, aligning your financial objectives with the enhanced well-being of individuals with disabilities.
Opt Philips Group NDIS investment property service to embark on a venture that not only guarantees a superior return on investment but also ensures the availability of pre-qualified participants ready to inhabit NDIS homes. Additionally, you have the flexibility to select locations poised for the most substantial capital growth.
For potential investors, SDA properties present a promising entry point into the real estate market. Through meticulous planning and research, these properties can establish a solid foundation for a successful investment journey. However, similar to any investment venture, staying abreast of tax implications is crucial.
At Philips Group, our team of experts is ready to assist you in structuring your property ownership to legally minimize tax liabilities. Additionally, we offer guidance on safeguarding your assets effectively. Reach out to us today to learn more about how we can support you in realizing your objectives and navigating the NDIS market. For more updates follow us on Facebook!