NDIS properties 7%-8% rental guarantee for 7 years
The National Disability Insurance Scheme (NDIS) is a program that aims to rehouse people with disabilities in privately established and high-quality specialist accommodation. NDIS will cover the cost of accommodation and ongoing care for participants to enter specialised housing.
The 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.
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.
Why young people live in the age care?
The NDIS will create at least 900 new homes every year which will enable over 6,000 young people living in aged care, and nearly 6,000 people living in inappropriate accommodation to move into a home in the community.
Specialist Disability Accommodation (SDA) refers to accommodation for people who require specialist housing solutions, including to assist with the delivery of supports that cater for their extreme functional impairment or very high support needs.
SDA funding under the NDIS will stimulate investment in the development of new high quality dwellings for use by eligible NDIS participants. SDA funding is not support services, but is instead for the homes in which these services are delivered. In the 2020-2021 budget, The Minister announced the government would provide $3.9 billion more for the NDIS and support the disability and their families.
Reference:
SDA Introduction
SDA Overview
Federal Budget reveal about the NDIS
There is currently a shortage of high-dependency accommodation available in Australia, particularly for young people, and so the involvement of private investors has been deemed necessary to speed up the rate at which urgent new housing requirements can be met.
For approved properties which are built to provide much-needed housing for those with specialised accommodation requirements, the Australian Government will pay NDIS participants’ rental costs for 20 years and provide investors with rental yields of more than-8%*. It is expected that SDA funding will be worth around $700 million per year.
The increase in housing stock which this initiative is expected to provide will make it easier for eligible NDIS participants to access the sort of accommodation they require, while at the same time boosting investor confidence and providing greater security by ensuring rental income.
In order for a property to become available to NDIS participants seeking SDA, the property needs to be enrolled and compliant according to SDA Rules, and the owner is required to be registered as an SDA provider.
The National Disability Insurance Agency (NDIA) will then connect NDIS participants with investors and developers who provide “high quality, fit-for-purpose and innovative dwellings.” This means that housing providers are not funded directly from the NDIS, but rather through the individual participants, who have their own approved accommodation budget and so negotiate a rent directly with the housing provider (it is also possible for NDIS participants and non-participants to share the same accommodation, with rents for each being separately negotiated).
The SDA payments that participants receive will be based on the size of the dwelling, its location and the accessibility it provides. These payments are also designed to cover the costs incurred in the bricks and mortar construction of the property, and offer a return on investment (ROI) at market rates of more than 10%.
The NDIS is attractive to investors who want a long term, steady income, while receiving market-beating yields.
NDIS properties are being built in high growth areas where clients are already investing.
• Rental yields at 7-8%*
• Rental guarantees*
• Prices start at $630K
* represents slight variations based on specific situation
This scheme offers investors more stability and cuts red tape for participants in the NDIS-backed Speciality Disability Accommodation sector. It is designed to boost investment and develop more housing for a further 12,300 people qualifying for the NDIS.
The subsidy rates give investors more confidence to invest, while changes that make the scheme easier for qualifying participants to access reduces the risk of investors developing housing that then sits empty.
You can, but only as a single contract. What this means is that you would need to purchase the property in cash from your SMSF.
A Family Trust is worth considering for holding this type of investment due to its tax benefits. However, we suggest that you speak to your accountant or financial advisor (it will be helpful if they know NDIS).
You need to allow around 10 months to build an NDIS SDA approved home. Your house will be built as a construction loan, with 5 drawdown stages under a fix priced building contract. You should remember that these homes are built to exact specifications, which is why it takes a little longer than a normal build.
SDA Management Australia (SDAMA) is a specialist property management firm that works with NDIS Service Providers in assisting NDIS participants to apply for and be placed in suitable Specialist Disability Accommodation. This process starts as soon as the property has been registered with SDA and the commencement of the build, with the intention of having the property occupied as soon as possible after it is completed.
Like all ongoing investment property ownership, there is always the risk of losing a tenant. Our lease agreement is 7 years, which guarantee you have uninterrupted rental payment during these period
At AHC, we help you invest in NDIS investment property that enables participants to benefit from Specialist Disability Accommodation. The NDIS is attractive to investors who want a long term, steady income, while receiving market-beating yields. NDIS properties are being built in high growth areas where clients are already investing.
AHC Groups is proud to introduce a very rare high rental yield NDIS property investment opportunity just in Melbourne, with the following unbeatable benefits:
Waive off up to 50% on purchase of residential property stamp duty* in Victoria before 1st July 2021
Level 20, 135 King St
Sydney NSW 2000
0490 254 186