According to Yannick Ieko, property continues to be a star investment performer during the pandemic with certain types of property delivering even better returns than others.
NDIS approved dwellings fall into this category.
Yannick Ieko is the founder and managing director of NDIS Loan Experts and SMSF Loan Experts, brands that have provided the market with loans and guidance for 12 years.
“Property is king at the moment and has significant gains for people that invest in it.”
“What we are finding is that investors who are purchasing NDIS approved dwellings are achieving extremely attractive returns of up to 20 percent per annum.”
“The most common question I receive is how do I find or invest in an NDIS approved property. People want to know what the process involves which is a very good question.”
Ieko has outlined common NDIS property questions
What is an NDIS property
Specialist Disability Accommodation (SDA) is housing that has been specially designed to suit the needs of people who have an extreme functional impairment or very high support needs.
“There is a significant undersupply of SDA properties across the country. Property investors are not only generating strong returns, but they are also helping to solve a social crisis.”
“SDA properties offer improved livability.”
“Improved liveability includes features like outdoor private areas being accessible by wheelchair and facilities like the bathroom vanity, bench, cooktop and key appliances being accessible in either a seated or standing position to meet the resident’s needs.
In addition, the properties must also be more robust to reduce reactive maintenance.
“The current government incentives for SDA properties means rental income is much greater, on average by 3 to 4 times than what investors generally expect from a non-NDIS property.”
How can I purchase an SDA property
“There are several ways you can purchase an SDA property.”
“Firstly, you can purchase a property and adapt it based on SDA housing requirements, however, this tends to require substantial and complex work and the scheme set a minimum spend the investor must be able to demonstrate to qualify as a new build in the scheme.”
“There are builders and architects that specialize in undertaking this type of work. In addition, there are also advisory organizations that specialize in providing this type of guidance.”
“You can also purchase an SDA property that is already equipped to house NDIS participants.”
“These can be sourced through real estate agents and specialist agents however they are in short supply. Family Offices, investment groups and other institutional investors actively seek out these properties for addition to their investment portfolios.”
“The scenario we see the most is for retail investors is the house and land package. This involves the purchase of a block of land in an SDA friendly location and then the construction of an SDA approved house on that parcel.”
How do I find an NDIS tenant/s
“This is a good question and one that many people want to know.”
“The NDIS operates under a broad market approach. On this basis, participants are expected to find and apply for appropriate advertised vacancies themselves.”
“Either a participant finds their own property directly through sites such as realestate.com.au, or via organizations such as NDIS service providers that rent out rooms to participants.”
“NDIS service providers normally provide live-in house coordinators and provide other levels of support to participants. Organizations also search realestate.com.au and have connections with agents that know what properties are coming up on the market that is SDA appropriate.”
Who pays the rent
“Income from an SDA property is structured differently to a standard investment property.”
“The income consists of several parts: SDA payment and the Reasonable Rent Contribution which is 25% of the recipient’s base disability support pension. Given the structure of the payments, the rent is guaranteed which is important when it comes to investment returns.”
“NDIS service providers tend to rent the whole property for lengthy periods of time. SDA properties are typically not subject to the same market forces as other sectors of the community such as people who have lost their jobs through COVID.”
NDIS Loan Experts offers greater flexibility in approving more property types than many competitors and seeks to ensure the most ultra-competitive loan rates in the market.
End-to-end loan set up, NDIS property investment consultancy, lending solutions for bad credit, expert guidance and finance solutions for residential and commercial property investment, and refinancing assistance for clients at the best rates available.
