NDIS Property Investment Risk Versus Reward

NDIS Property Investment Risk Versus Reward

author: Tim Hull

published date: June 28, 2023

in this article...

Wherever you are on your investment journey, there is no doubt that when correctly done, purchasing a National Disability Insurance Scheme (NDIS) property can be a fantastic investment.

It is also true that more factors should be considered compared to traditional property investment. So I believe it’s essential that you take time to work through the opportunity to make an informed decision, whichever path you take.

Investing in NDIS property? How does it work?

The NDIS provides support to people with a disability along with their families and carers to assist with accessing better housing, health, education and community services. The scheme is funded by the Australian Federal and State Governments with a 20-year NDIS certification. Investing in an NDIS property can provide strong returns for the investor and, at the same time provide a better standard of living for people with disabilities.

There is an expanding undersupply in the housing market as participants requiring Specialised Disability Accommodation (SDA) continue to transition into the NDIS. They require the support of a privately operated housing market.”

Stuart Robert, Former Minister for the NDIS

Top 10 considerations when investing in NDIS properties

Here are some factors I believe are important to the success of NDIS property investment, established over 12 months of researching the opportunity prior to offering it as an investment option to my clients. I have also assisted investors over the past three years in securing NDIS investment properties across a wide range of areas of Australia.

  1. A healthy working relationship with SDAs with industry experience and strong Participant pathways with Care Providers is critical.
  2. Just because an NDIS property gains NDIS Certification does not mean that SDAs and Carers will accept the property to manage and accommodate Participants.
  3. Floor plan size and layout matter, particularly with certain aspects of the floor plan design
  4. If you enter the investment with a ‘build and hope that they will come’ approach, you are very likely to experience Participant placement pain.
  5. Avoid areas where there is, or is likely to be, a large release of new land particularly if it is cheap.
  6. Build where and what the market wants – Align with SDAs and SIL Providers that have extensive knowledge and understanding of Participant demand and the type of design required to meet the needs of the Participants in any given area.
  7. Cheaper is not always a bargain – there is, unfortunately, a lot of cheap, poor-quality NDIS properties around – yes, on paper, the numbers look great, but in reality, they may not eventuate.
  8. When money is to be made, there are always people who are out to get a ‘slice of the pie’ and run – engage a team of qualified and experienced professionals with your best interest as a priority.
  9. Speak with at least one SDA prior to committing to an NDIS purchase.
  10. Be wary of completed NDIS properties for sale that don’t have Participant leases in place.

Statistics from the latest NDIS Quarterly Report

The most recent NDIS quarterly report to disability ministers showed active participants with SDA supports have increased by 15 per cent annually over the last three years, reaching 20,920 as of 30 September 2022, and 22,479 by November 2022.

The average plan budgets for SDA supports have also increased by around 11 per cent per annum, leading to an increase in total SDA supports in participant plans by around 28 per cent per annum, from $144 million in September 2019 to $306 million as of 30 September 2022.
Total SDA payments have increased by 45 per cent annually over the last three years, from $67 million to $205 million, while the average SDA payments per participant have also increased, by 24 per cent per annum – the report states.

A review of SDA pricing was launched in 2022 that evaluates the impact of current SDA prices on supply and demand and set new SDA prices to guide market investment to areas that will most benefit people with disability that need SDA housing over the next five years.

If you would like to contact me to discuss the NDIS investment opportunity further without the fear of being sold to, you can reach me on 0413 943 680 or email me at hello@propertyproaus.com.au.

Whatever you decide to do, I wish you all the best on your journey!

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tim hull

director & property investment strategist

For more than a decade we have helped hundreds of people purchase residential investment properties across many areas of Australia.

We have a wide range of property types for you to consider to align with your current and future plans specialising in traditional, NDIS, SMSF, multi-lease, dual occupancy and duplex builds.

We are here to assist in sharing our experiences gained in our role as property investment strategists, builders, property developers and investors.

I’m sharing my experiences gained in my role as a property investment strategist, educator, and advisor via educational videos, courses and articles covering property investment and business related topics.

For more than a decade I’ve helped hundreds of people purchase investment properties in all parts of Australia. I’ve owned and operated several businesses, and I’m also an active property investor myself.

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