Welcome to an innovative initiative by the federal government to provide first-class housing for disabled tenants via the national disability insurance scheme (NDIS)
Investing in NDIS SDA investment property can be an excellent opportunity for an astute investor seeking high returns. There is, however, a lot more that you need to understand about this type of investment.
An NDIS Investment property is not as straightforward or as simple as a standard house and land package. Still, it can provide huge returns whilst also helping a person in need of suitable accommodation.
What is NDIS?
The NDIS stands for the National Disability Insurance Scheme. It provides support to people with a disability, their families, and carers. The NDIS is jointly governed and funded by the Federal and relevant state and territory governments.
The scheme started in 2016. It takes a lifetime approach to improve the well-being of disabled persons and their carers.
The Australian Government estimates that approximately 4.3 million Australians have a disability. Over the next five years, the NDIS will provide more than $22 billion in funding a year to an estimated 500,000 Australians with permanent and significant disabilities.
The NDIS can provide people who have a disability with information and connections to services in their communities.
How Do Investors Fit into the NDIS SDA?
Investors have the opportunity to gain returns and assist those in need by investing in an approved SDA dwelling. The scheme is aiming to rehouse persons with disabilities in privately established high-quality specialist accommodation. The NDIS will cover the cost of accommodation and ongoing care for the approved participants to enter SDA housing.
Dwellings can be:
Investors can purchase or buy into approved SDA housing and have it leased to approved participants through a registered provider. The NDIS will only pay SDA funds to a registered provider with an enrolled and compliant dwelling.
How Does an Investor Receive Payments?
The income from an SDA property is different from a standard investment property. The income consists of three separate parts:
- SDA Payment
- Commonwealth Rent Assist
- The Reasonable Rent Contribution is 25% of the recipient’s base disability support pension.
The Pros of NDIS Investment Property
Outlined below are some of the key advantages of NDIS property investment.
- High Returns: There are very high returns available to investors when dwellings are fully let with approved NDIS SDA participants.
- The NDIS is a federal government program that funds specialist accommodation for its participants
- Socially Responsible Investment: Investors can feel good knowing that they are providing housing solutions to people currently residing in inadequate dwellings.
If you’re looking for Government-backed passive income opportunities, get in contact with us to find out more.