Is short, no, it is not.
The NDIS is a government program and NDIS participants are funded by the Federal Government in their plans. That money does flow through to developers of NDIS properties in the way of rent, however – and that can produce returns to an investor.
The Federal Government will only guarantee funds up to $250K in a major bank. So, say you deposit $250K in The Commonwealth Bank, for example and that bank goes under (which is highly unlikely) – your money would then be underwritten by the Federal Government. It’s insured essentially.
Any other investment comes with some element of risk, and this includes NDIS investments. Anybody who promotes that NDIS investments are guaranteed by the government is not telling the whole truth. Investors should be cautious and be fully aware of the facts.
The money starts with the Federal Government under an NDIS plan however an investor needs to do their due diligence and ensure that the projects stacks up financially by reading the Information Memorandum or PDS. They need to ensure the numbers and figures make sense in terms of a stand-alone business and therefore an investment before making any decision to invest.
If you have any questions around investing in NDIS properties, get in contact with us.