The National Disability Insurance Scheme (NDIS) has opened up a new avenue for property investors in Australia, with Specialist Disability Accommodation (SDA) properties in high demand. While the potential returns are attractive for NDIS property investment, it’s crucial to weigh up both the pros and cons of investing in this type of property. We have compiled this easy-to-understand guide to understand the basic pros and cons of investing in NDIS housing. If you’d like more guidance on whether this suits your personal financial situation and investment goals, book a call with us today to learn more. Read on to learn the pros, cons and some tips on knowing if NDIS property investment is right for you
Pros of NDIS Property Investment
There are a number of advantages when considering an NDIS housing investment strategy. Here are our top tips for why an NDIS investment property can be a great avenue:
- Strong rental demand: The NDIS provides consistent funding for SDA properties, ensuring a stable rental income.
- Long-term leases: NDIS participants often require long-term accommodation, reducing vacancy risks.
- Potential for high returns: Due to strong demand and government-backed rental payments, NDIS properties can offer attractive rental yields.
- Positive social impact: Investing in SDA properties contributes to providing essential housing for people with disabilities.
Cons of NDIS Property Investment
- Higher initial costs: Building or purchasing an SDA property typically requires a larger upfront investment compared to traditional residential properties.
- Strict regulations: Compliance with NDIS and building regulations is essential, adding potential complexity to the investment process.
- Specialised tenants: NDIS tenants have specific needs, requiring properties to meet strict accessibility standards.
- Market fluctuations: While demand is currently high, market conditions can change which could affect property values and rental income.
Is NDIS Property Investment Right for You?
Deciding whether an NDIS property investment is suitable depends on your financial goals, risk tolerance and desire to make a social impact.
If you are considering NDIS property investment, whether you are a first-time investor or looking to diversify your current portfolio, it’s essential to:
- Conduct thorough research into the NDIS and SDA regulations.
- Understand the specific needs of NDIS participants in your target market.
- Partner with experienced professionals who specialise in NDIS property investment.
Conduct thorough research into the NDIS and SDA regulations. Understand the specific needs of NDIS participants in your target market. Partner with experienced professionals who specialise in NDIS property investment.
Book a call with our team today to discuss your investment goals and learn how we can assist you. By carefully considering the pros and cons, you can determine if NDIS property investment is the right path for you.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
