High yield investment opportunities
Investment in NDIS Properties QLD: NDIS Housing Property for Sale
In a bid to attract private investment into the market, the federal government has created the SDA program which provides opportunities for residential property investors.
With the potential for 14% or higher gross investment yields, and with positive social and ethical objectives at its core, investing in NDIS Property is well worth investigating.
The NDIS approach to SDA funding has been to make investing in accommodation designed for NDIS participants both commercially viable and attractive for investors. The returns that SDA property investors are aiming to achieve are up to 8-14% p.a net yields. This figure may vary depending on the location factor, property type, number of participants per dwelling, and category of participants residing in the property.
Our role is to provide you with a choice of investment options based on properties that are being developed and built specifically to be SDA compliant. We can also connect you with relevant industry professionals to guide you through the process of applying for NDIS investment finance and completing a purchase.
Some of our available SDA Properties
FAQs about Investing in NDIS Property
The approach to SDA funding has been to make investing in accommodation designed for NDIS participants both commercially viable and attractive for investors.
A summary is as follows:
1. The NDIS is attractive to investors who want a long term, steady income, while receiving market-beating yields.
2. NDIS properties are being built in high demand areas where clients are already investing.
3. Gross rental yields of up to 25%* on the high end, and 10% gross yields on the low end. However after costs, investors should expect an average 10-15% pa net return just to be conservative, as it depends on many factors.
4. Prices start from around $500K, and can range up to $900K, as a ball park figure. It all depends on land prices in the area selected, and the inclusions required for the different category of participants living within the SDA home.
Yes. The SDA funding under the NDIS is a legislated commitment of Australia’s Commonwealth, State and Territory governments, set out in the NDIS SDA Rules (2-18) under the NDIS Act 2013. This legislation provides the foundation for government’s long-term and firm commitment to SDA funding under the NDIS. Beyond the legislative commitment, SDA funding enables eligible participants to achieve better outcomes while representing value for money for the NDIS saving the government and taxpayers a lot of money otherwise spent on accommodating the applicants themselves.
The SDA policy is an ambitious initiative requiring $5Bn to build housing. Government cannot achieve this and thus launched the $700M a year NDIS Scheme to create an investor and user driven market. Empowering people with disability to decide where they live and who they live with. The package of support includes annual funding to pay for the cost of their housing where the participant has a separate amount in their package to pay for their attendant care support needs to live independently in our communities. It is anticipated that the SDA pricing and framework will continue for 20 years, after which your property will revert to the general market.
Research demonstrates that for the government to accommodate one person with disability and provide them with services at the same time, it costs both government and tax payers around $1M per annum. And for a person who ends up in a hospital disabled, whilst recovering and waiting on suitable accommodation, this person costs government and tax payers around $1,500 per day to accommodate them in the hospital. If this research is accurate or even half accurate, by you the investor receiving circa $30,000 to $50,000 per participant per year you are saving both government and tax payer an incredible amount of money they have to spend otherwise. So yes, it is financially absolutely viable. If it costs $1M to accommodate one applicant in the system, this means a savings of $950,000 per annum per Participant, therefore this is a significant savings for the Government.
You probably have many other questions, so please call or email me. I’d be more than happy to provide you with more information on Investing in NDIS Property.