ndis property investment
We follow a participant first model, not a ‘build and hope they will come’ approach. NDIS Certification is guaranteed.
Wherever you are on your investment journey there is no doubt that when done correctly purchasing an NDIS property can be a fantastic investment. It is also true that there are more factors to be considered when compared to traditional property investment, and so our aim is to provide you with information and support so that you can make an informed decision.
We work closely with Australia’s largest Specialist Disability Accommodation (SDA) providers and currently have over 200 SDA builds under construction or completed nationwide. All finalised properties have been leased to NDIS participants.
NDIS Smart & Simple Investment Guide
Our 11 page guide covers the eight must do steps to succeed in your NDIS property investment journey.
“It is said that cash flow allows you to stay the journey, and capital growth is the reward for finishing the journey.”
Out of the approximately 4.3 million Australians who have a disability, the NDIS provides funding to an estimated 500,000 recipients living with permanent conditions. Recent studies reveal a significant shortfall in suitable accommodation with an estimated 60% increase in the number of available homes required to meet this demand.
The NDIS has identified over 28,000 participants living in inappropriate accommodation, with more than 6,000 young people resorting to aged care facilities due to a lack of SDA options. This number is increasing by around 50 people a week.
Recently announced pricing arrangements further improve potential returns by approximately $30,000 to $75,000 with 15% and even 20% achievable yields as an incentive for investors to fund the construction of these much needed NDIS homes.
frequently asked questions
What is the NDIS?
The National Disability Insurance Scheme provides support to people with a disability along with their families and carers.
The scheme is funded by Australian Federal and State Governments to assist people to access better housing, health, education and community services.
What is SDA?
For some participants in the NDIS, they will receive funding for SDA. SDA stands for Specialised Disability Accommodation and is a system created under the NDIS for people with high support housing needs.
SDA service providers hold the head lease and oversee the process of securing accommodation for the participants. The SDA provider has an agreement in place with SIL providers (care services) and their role is to ensure the house has tenants and is maintained to a high standard. They work together with all the related NDIS agencies and are the only entity who can manage all SDA payments.
Who is SIL?
Supported Independent Living (SIL) refers to the support or supervision to develop the skills of an individual to live as independently as possible.
A SIL provider’s role is to provide care services for the participants and have agreements in place with SDA providers.
What is RRC?
The Reasonable Rental Contribution (RRC) forms part of the investor returns and is capped at 25% of the base rate of the Disability Support Pension and 100% of any Commonwealth Rental Assistance scheme.
The RRC amount is the same for all participant categories and locations.
Who chooses the house & land locations where NDIS houses are located?
With PPA it is not a build and hope strategy! The house designs and location are chosen for the waiting participant’s requirements with input from SDAs. PPA can assess blocks of land presented by clients for suitability of an SDA build including gaining approval from our SDAs.
When does an investor receive rent payments?
The RRC is paid fortnightly and the NDIS payment is processed monthly.
Is the land registered?
In most cases the land is registered or due to in the short term. This information is presented to clients prior to them securing an option.
What is the time frame to build?
Depending on the type of dwelling being constructed (House, Duplex, Villas, Apartments etc) the time can vary. The typical single level house can require a build time frame of around 12 months in the current market (2023 – 2024).
What happens after the 20 years?
The investor can sell the property, as per standard real estate legislation requirements in the particular state or territory while also having the option to roll over their agreement and continue as ‘Existing NDIS Stock’ once the 20-year period is reached.
Does the SIL provider have tenants lined up to move in?
Yes, PPA only offers NDIS property investment options to clients that have been approved and required by our SDAs.
How does the lease agreement work with more than 1 tenant in a property?
A separate lease agreement is held with each Participant by the SDA.
What happens if one tenant moves out and it takes a while to find a new one?
It is written into the lease that the agreed NDIS allowance is to continue to be paid to the property owner for up to 10 weeks while another participant/s are sourced. SIL providers have an obligation to find another tenant and, in most cases, have participants on a waiting list.