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The National Disability Insurance Scheme (NDIS) was designed to change the way in which people with disabilities and their families in Australia receive government support, by providing funding directly to individuals rather than through state governments or other organisations. The NDIS is a Bi-Partisan Federal Government Agreement with a current budget of $22 Billion per year. The NDIS was rolled out in 2016 to help assist the 14% (approx. 4.3 Million) Australians who have a disability.
A key component of the NDIS is the provision of Specialist Disability Accommodation (SDA), which is housing designed specifically for NDIS participants who require specialised living arrangements.
Specialist Disability Accommodation is a NDIS introduced funding stream to build new, accessible and affordable housing for Australians living with a disability. In essence, the NDIS makes pre-calculated payments to those Providers (& investors who purchase a NDIS approved home) in order to cover the costs incurred to the Investor with the potential of providing Returns on Investment (ROI) of over 4 – 5 times higher than an average investment property.
Rental Incomes to the Investor can range from $94,000 p.a. – +$186,000 p.a. dependent on location, the number of tenants and the type of accommodation provided. Therefore, depending on these factors, the gross yields can be anywhere from 12 to +16%.
It should be noted that there are a number of key risks that need to be mitigated for the NDIS home to be a successful investment. It is not a “magic-panacea” for investing. Primary to these risks, is how to ensure the property is optimally tenanted in a timely fashion. Our strategy has been successful in mitigating these risks and gaining high paying quality disabled tenants for every single one of our clients’ investments.
A typical NDIS home is normally 3 – 4 Bedrooms housing 2 – 3 Disabled People and a Carer (paid for by the NDIS).
A key point is that these homes from the outside look just like any other Non-NDIS Home. But inside the interiors have been specifically designed to cater for the specialist needs of a disabled person to enable them to live a normal life independently (and not having to live their lives, for example, in an institutionalised nursing home). And for younger people the opportunity to live with others of their own age and still receive the care and support they need.
It is also important to note that homes are brand new and built within a regular Owner Occupier Development (for example a 40 Home Estate) with very few of the homes being an NDIS home. So in other words NDIS homes are not built within a stipulated “cluster” of NDIS homes in a property estate.
Contact us today to find out more about how you may be able to own an NDIS home in a terrific location.
Arrow Realty is a specialist investment property agency that offers targeted property solutions that are ideally positioned to capture capital growth as well as target net positive income.
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