All you need to know about NDIS Housing Investment

If you're looking for a property investment that'll give you the same return as it promises, this may be an excellent opportunity. 

The NDIS will spend more than $22 billion over the next 5 years to help approximately half a million Australian people who are either permanently or significantly disabled. There are currently 4.3 million Australians suffering from a disability, and The Government has identified a severe lack of suitable properties available for them. 

Therefore, providing a home for someone with a disability is not just about providing comfortable living accommodations. There are also higher than average market rents, yielding more than 10% in some cases and up to 15% when dwellings are fully let with approved NDIS SDA participants.

What is NDIS in Australia?

The National Disability Insurance Scheme (also called the NDIS) is a program of The Australian Government that provides support to Australians with disabilities, their families and carers. The program was legislated in 2013 and went into full operation in 2020.

NDIS is a program that supports Australians under the age of 65 who have permanent and significant disabilities. Disabled people will no longer be limited to the choices of support and services they are given, but rather can exercise greater flexibility and choice around what suits their individual needs.

The NDIS supports people with disability by:

• services and supports that are available to the general public - like the health system and education systems
• Community services and support, such as sports clubs, community groups, and charities 
• Maintaining informal support, such as the help people get from their family and friends. This is a free support that most people have in their lives.
• providing reasonable and necessary funded supports related to the disability of each and needed for them to live an ordinary life.

The NDIS supports the lives of those affected by disability in many ways, but one of the most meaningful is by providing specialist accommodation via funding.

How is the accommodation funded by the NDIS?

Specialist Disability Accommodation (SDA) was formed in 2016 after there was an insufficient number of suitable accommodations for those with disabilities had been uncovered. The purpose of SDA is to provide funding under the national disability insurance scheme (NDIS) for custom homes that are specifically built to accommodate Australians with disabilities.

Many people with disabilities are living in aged care facilities because there's a lack of housing that is appropriate for them. The SDA funding aims to provide people with disabilities a more permanent home by turning a specialised residential dwelling into a long term home for a person with a disability.

The Government has been addressing the high demand and low supply for specialist disability accommodation with incentives to investors!

There are tens of thousands of people in Australia with a disability who are currently eagerly awaiting suitable accommodation. You have the opportunity to supply not only a property that meets their needs but also enjoy the fantastic investment benefits of investing in NDIS properties.

For a list of NDIS Properties and land Packages for sale, visit our Properties page.

What are the advantages of NDIS Housing Investment?

The Government is committed to providing a solution to the undersupply of specialist accommodation for Australians with disability through NDIS housing Investment. This funding will allow Australians approved for the NDIS to rent your property, bringing with them a wealth of benefits for your NDIS housing investment.

Government-backed investment

Because the federal government pays a significant portion of the rent through SDA funding, there is reduced investment risk. Government investments are among the safest types of investments. 

The government has committed to funding SDA homes for 20 years, so SDA funded NDIS participants will have a home in the appropriate housing. This means that SDA payments are backed by the Australian Government for 20 years, with the possibility of extending beyond that timeframe.

Low risk of vacancy

When investing in property, the risk of vacancy is a very real possibility many property owners have to contend with. 

The drastic shortage of SDA housing means you are less likely to have to worry about your house remaining vacant. The chance of not having a tenant move in after someone moves out is low. If your current tenants have to leave for one reason or another, you shouldn’t have to wait long before a replacement moves in!

The risk of vacancy is reduced even further because people with disabilities are long-term tenants. Once they find the right home that suits their needs and improves their quality of life, they want to stay in it as long as possible.

How do you find a tenant on NDIS?

If you are considering investing in Specialist Disability Accommodation (SDA), it is important to understand how the NDIS works and how you can connect with tenants.

The NDIS operates with a broad market approach, which means participants are expected to find and apply for appropriate vacancies themselves. This can be accomplished in two ways:

1. Contacting providers directly,
2. Or using online sites such as Housing Hub or Nest.

As an investor, you would want to work with an SDA provider who has many SIL providers that they are connected to, and these provide housing for those applicants who have been approved or are currently going through the application process.

NDIS PROPERTY AUSTRALIA is partnered with ADAPT HOUSING, a Queensland and New South Wales-based specialist disability housing provider. They offer solutions from a national perspective. ADAPT has a strong presence in the disability sector includes working closely with care providers and support services on a national level. ADAPT is currently working with over 40 support service providers to help participants find tenancy and a sense of security.

How to invest in an NDIS property?

Because it is a new investment market, many people don't know how to start investing in NDIS housings. 

Firstly, You can buy a property and adapt it to SDA housing requirements, but this is typically very expensive and generally not financially feasible. The NDIS has a minimum qualification that investors must spend before the renovated property can qualify as a new build in the scheme. Alternatively, you could purchase a purpose-built SDA development which is becoming increasingly popular.

Most of the new builds available for investment are Houses and Land packages, or apartments and villas.

At NDIS PROPERTY AUSTRALIA, we offer a variety of SDA House and Land packages throughout Queensland, Melbourne, and Perth as well as development sites for villas or units in regional NSW.

To qualify for NDIA funding, a property must meet the design requirements. This includes things like the size of bedrooms and bathrooms as well as wider doorways to accommodate wheelchairs.

The property must also have universal design features, which are there to help people with disabilities live more comfortably. This might include rails in bathrooms and level entryways for wheelchair users, or automatic doors for those who can't use doorknobs, depending on the ability category of the person.