News

September 5, 2022

4 Steps to Build Your Investment Property Portfolio with NDIS Housing Investment Property

National Disability Insurance Scheme (NDIS) property is a growing investment opportunity for savvy investors. Demand for NDIS properties in the right locations is strong, and they provide Australian Government-guaranteed rental income that’s often above commercial market rates.

NDIS properties are known as specialist disability accommodation (SDA). They are designed and built according to approved standards and incorporate features to make day-to-day life simpler for Australians with disability. Investing in NDIS property (SDA) may provide a number of benefits to investors, as well as to people with disability — which is why it may be considered an ethical investment that makes a big difference in your community.

Read on to find out the four ways to build your NDIS investment portfolio.

Step 1: Analyse your current investment portfolio assets and needs

For diversification, risk management and liquidity purposes, it may be a smart idea for your investment portfolio to have a balance of investments across different asset classes. These asset classes might be made up of property, shares, fixed interest or any of the other classes out there. The right mix of asset classes will depend on your financial needs and goals, so it is always a good idea to consult your financial adviser if you have any questions.

Understanding your liquidity needs is important. For example, if you are younger and your goals are more weighted towards capital growth than investment portfolio liquidity, then you may be happy to invest more of your funds in property because you don’t have a cash flow need that would see you having to sell down assets often.

To maximise both capital growth and income-earning potential from tenants, a longer investment horizon may be best for SDA properties.

Step 2: Look for available NDIS properties

The best way to look for available NDIS properties is to contact an NDIS investment expert who specialises in SDA housing and land packages. An NDIS investment expert has the necessary understanding of the sector to provide you with NDIS property investment guidance that suits your financial needs and goals — and you’ll be sure to purchase approved SDA housing with an expert on your side.

NDIS investment experts also ensure that your SDA is built or approved to meet the NDIS’ strict SDA design standards (SDA compliant), and they can help with sourcing NDIS participants who qualify for SDA funding.

Step 3: Work out your NDIS investment property finance

Again, an NDIS investment expert can help you source finance that suits your NDIS property investment needs if necessary. The tenant income and SDA payments can be taken into account when assessing your ability to meet your loan repayments, so we can help you achieve a higher servicing capacity than you might get for a regular investment property or with a non-specialised lender.

Step 4: Build or buy your NDIS (SDA) property and enjoy the financial benefits

Building or buying your property is the final step in the process, but it’s when the long-term benefits start. Your property is likely to improve in value over time, and you will be earning regular, Federal Government-guaranteed rental income from your SDA tenants that’s usually higher than the average for traditional rental properties.

The benefits don’t end there. You can also claim eligible expenses on your NDIS property as a tax deduction to reduce the amount of tax you need to pay. Examples of eligible expenses include loan interest and fees, council rates, insurance, repairs and maintenance.

Finally, there is also a non-financial benefit of investing in NDIS (SDA) housing as well. You will be helping to improve the life of an NDIS participant with high-care needs.

NDIS (SDA) property investment is a growing and lucrative sector. It may be suitable for investors who are looking for a safe and above-average return on investment. It may also be a great way to diversify your investment portfolio while helping NDIS-approved tenants.

Contact us today to learn more about investing in NDIS property in Australia.

Get in touch with our team for more information now.

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