Mum-and-dad investors who want to “fast-track” their investment strategy to retirement should consider breaking into the National Disability Insurance Scheme (NDIS) property space.
Apollo Investment director and head of acquisitions Nicholas Logan-Alessio said custom-built NDIS properties present a viable investment opportunity as they provide around 10% to 15% yield and a potential maximum capital growth.
“It’s the ideal investment choice for mum and dad investors looking to fast-track their retirement,” he said.
Specialist disability accommodation (SDA) supported through the NDIS refers to houses that have been built with the modifications necessary to make them more accessible to those who have chronic or severe medical conditions, mobility impairments, visual impairments or psychological disorders.
For instance, an NDIS property may have a ramp instead of steps, making it accessible for those in a wheelchair.
“In Australia, there are currently over 45,000 people with a disability who are looking for accommodation to suit their needs and there are simply not enough properties to meet their needs,” Mr Alessio said.
Also read: Should you invest in NDIS property?
Mr Alessio said rental earnings from NDIS properties are backed by the Australian government through secure SDA payments.
“You don’t need to worry about getting long-term occupants as we’ll help you secure your first long-term lease,” he said.
“And even after that, NDIS service providers can help match your property to NDIS-approved tenants, meaning that your property will always be in demand for tenancy.”
Furthermore, the rental revenues for NDIS or SDA properties are also higher than the average market prices, offsetting the upfront cost and the retrofitting expenses.
NDIS properties do not often come up for sale but building one might actually be easier than many potential investors think. The key, however, is working and partnering with the right organisation.
“By doing this, you will not only get the help you need to find the most appropriate location, purchase the best piece of land, and secure the most skilled builder, you will also be provided with the guidance and advice necessary to minimise stress and ensure the turnkey project is a success,” Mr Alessio said.
“At the end of the process the organisation will even help you find an NDIS tenant.”
Photo by studioroman on Canva.