The traditional property is a lucrative investment choice for the Australians, thanks to their prospects of delivering the ROI of over 300%. But when it comes to the NDIS property, the investors are yet to explore the prospects and opportunities.
Australia has witnessed a housing boom this year and the country has found a new lucrative investment option for the property investor.
The NDIS property of Australia has given a blockbuster performance in the country’s highly-volatile housing sector by delivering an annual ROI of over 20%. But the lucrative ROIs prospects also bring some ethical implications to the housing property investors of Australia.
The country’s NDIS has recently reported that the number of NDIS beneficiaries is expected to grow by over 30% in the next 4 years.
The Australian government has admitted that finding a suitable Specialist Disability Accommodation (SDA) will be challenging for many.
The government has also emphasized on the growth of the SDA Market of the country so that the people with high-support needs could find the homes that best-suit their personal circumstances and bespoke requirements. The SDAs are designed exclusively for the people who have an extreme functional impairment or very high support requirements.
The federal government allocates 22 billion dollars annually for the NDIS funding so that the people with high support requirements could afford a suitable Specialist Disability Accommodation.
The Investment Prospect
Considering the tremendous growth of the NDIS beneficiaries in the next four years, the NDIS property is a better investment than the traditional property. The reason – the Australians with a disability, especially the young people are facing a very challenging situation. They are forced to settle permanently in retirement homes, hospitals, and some very inappropriate places because they have no better option to live.
Whenever a new NDIS property is built, it provides the Australians with a disability an opportunity to live at a place that is suitable to their special requirements. Thus, the NDIS property benefits not only the investors but also the Australian with a disability as they get a suitable place to live.
The Best Approach
While the NDIS property is beneficial for both investors and users, it is equally difficult to find and buy a fully-furnished NDIS property with a tenant already in there. The best approach for the investors is to buy a house and land package and construct a new housing stock – that is the need of the hour. The best approach to invest in a NDIS property is – get a parcel of land, knockdown or reconstruct. If you get to invest in a new estate then identify the land and purchase it first. Next – hire a builder who specializes in NDIS property. While engaging a builder who specializes in the NDIS property is somewhat difficult given their limited presence in the country – you may hire the NDIS Investment Specialist for this job.
While the NDIS property investment requires a special approach, it is not a difficult task for someone who can afford the time required to go through the required process to get a lucrative return over their NDIS investment.
The most lucrative aspect of the NDIS property investment is the invention from the Specialist Disability Accommodation Scheme of the Federal Government. The investors can buy the approved Specialist Disability Accommodation and get it leased to the approved tenants through a registered agent. The NDIS will only pay the SDA incentives only to the registered agent who has an enrolled and compliant property.
Things to Consider
While investing in the NDIS property, you need to consider two important things. Make sure that your tenants are NDIS participants and your property is in great demand. You can ensure this by constructing the housing that best-suits a specific type of disability at a prime location.
You should also consider the conventional drivers for the demand – the infrastructure required for the tenants and the population growth estimates.
The Conclusion
Today, the Australia is facing the highest NDIS supply deficit in Victoria followed by New South Wales. Having said that, all the regional areas of the entire country are facing the highest undersupply of Specialized Disability Accommodation.
In Victoria, you should create SDA housing in the cities like Ballarat, Bendigo and Shepparton. These regional areas will sustain recession much better than the capital cities. The prospects are the same in New South Wales. You may also consider the small towns around Melbourne and Sydney to create your NDIS housing investment because the supply deficit presents a great demand and this leads to the long lease in the long term.
That is how, the NDIS property investment ensures you a regular stable ROI with fewer expenses related to the changeover of the tenants.
