Meet the ‘mum and dad investor: an ordinary couple with a couple of children and pets, they own a couple of cars and live in the suburbs, their kids play sport on the weekend and they gather with family and friends during special occasions. Mum and dad are middle-aged and looking to invest some money so that they can guarantee themselves a good quality of life.
So far, pretty average and ordinary. Their choice of investment is, however, something rather out of the ordinary: They’ve decided to invest in a purpose-built custom NDIS property.
Why are NDIS properties a good investment?
Custom-built NDIS properties are a great investment opportunity because they provide a 10 to 15% yield and are well-placed for maximum capital growth. Because of this, the returns are providing mum and dad investors with the ability to generate significant financial gains.
In Australia, there are currently over 45,000 people with a disability who are looking for accommodation to suit their needs and there are enough properties to meet their needs.
Specialist disability accommodation (SDA) supported through the National Disability Insurance Scheme (NDIS) refers to houses that have been built with the modifications necessary to make them more accessible to those who have chronic medical conditions, mobility impairments, visual impairments or psychological disorders. A simple example of this is to have a ramp instead of steps in a house, which makes it accessible for those in a wheelchair.
We often take these things for granted without thinking about how those with special needs are often forced to adapt to houses that are not suited to their needs. With so many people needing NDIS properties, they are one of the most sought-after forms of property investment because of their social benefits and investment returns. NDIS housing is providing a once in a lifetime opportunity for mum and dad investors to create generational wealth.
Building NDIS homes to help vulnerable people
NDIS properties do not often come up for sale which is why one of the most effective ways to purchase one is to build one however it is also possible to purchase one that is in the process of being built. Building your own NDIS property is actually easier than you think and there are many supports available to you to assist with the process. My strong advice is to partner with a firm that is experienced in helping people to build their own NDIS property.
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. At the end of the process the organisation will even help you find an NDIS tenant.
While there is strong demand for NDIS property all over the country there are certainly areas to be avoided that have been oversaturated by developers, builders and investor groups chasing a quick ‘buck’. Selecting the right area must be done in conjunction with the people at the “coal face”, participants, Supported Independent Living (SIL) and SDA managers.
Choosing the right business to help you is critical. Many businesses in our sector work on the basis of commissions. Avoid this where possible. We operate on a fixed fee basis and project manage the process for you. This minimises cost and ensures you get the support you need.
We work with an Aussie-wide network of resources like resellers, land developers, specialised architects and an approved panel of builders to put together investment opportunities that specifically line up with the needs for people under the NDIS scheme. We help you to navigate all the complexities of these niche investments and reap the high-yield benefits.
Guaranteed investment opportunity
If you don’t want to build your own property, you can also purchase an NDIS property that is ready to be tenanted. We produce a number of properties with 100% occupancy lined up even before completion of the construction. This is because we pride ourselves on being tenant-driven, and build houses that cater to their needs. Beware that some firms in the sector claim to work hand-in-hand with builders and developers that work off stock lists.
The end result is that because these houses were not built with the NDIS tenants’ needs in mind, they don’t meet their needs and the house can remain untenanted, which ends up squandering away their investors’ money. In addition, we also pass on every rebate and discount to our customers, saving them money at every stage of the process.
This can be for something as small as $500 for legal services that other companies would usually keep as an ‘introduction fee’, or could be as significant as up to $40,000 in commissions from a builder or developer. Furthermore, we are proud to say that we’ve never been wrong and have received valuations that are ‘on the dollar’ or over the contracted price for every one of the properties that our clients have purchased.
What you need to know about investing in NDIS property
Investing in an NDIS/SDA property can be a rewarding experience for you. By building an SDA-approved property, you don’t only help solve the issue of lacking supply of suitable housing for Aussies with disabilities, but you can also reap high returns of 10-15%. It’s the ideal investment choice for mum and dad investors looking to fast-track their retirement.
Rental earnings from NDIS properties are backed by the Australian govt 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. After that, NDIS service providers can help match your property to NDIS-approved tenants, meaning that your property will always be in demand.
The rental revenues for NDIS or SDA properties are higher than the average market prices, making the upfront cost of buying a housing and land package and retrofitting a home to be a specialist disability accommodation worthwhile. Investing now for your retirement will ensure that you enjoy a comfortable standard of living in the future. If you’re ready, invest in an NDIS property, then make sure that you work with the right firm to grow your wealth.
Nicholas Logan-Alessio is the Director and Group Head of Acquisitions at Apollo Investment.