Why invest in NDIS property? The National Disability Insurance Scheme (NDIS) is an incredible initiative for many Australians and an great investment opportunity for those looking to invest into a high yielding property investment.
In this market insight we provide a summary of the reasons and benefits why you should invest in NDIS property.
What are the benefits to invest in NDIS property?
Many investor turn to buying property investment on the basis of three points. The first is capital growth through the asset value increasing, the second is the regular income stream through rent and the fact that both capital growth & income provide a consistent return for investors.
Here are some of the benefits to invest in NDIS property:
- Specialist Disability Accommodation (SDA) has consistently been increasing. There is currently a shortfall of property supply, potentially offering property investors a great chance to have their property fully occupied promptly.
- The Australian Government will continue to support the scheme for the next 20 years. The government is doing so by assisting people with a disability by paying and subsidising the rent. With this supporting program, rental yields can be easily over 10% in comparison to traditional property investment that may range between 3% – 4.5%.
- Income security – Rental returns are currently backed by the Federal Government.
- High rental yields – These assets offer well above average rental yields seen in both residential and commercial property investment.
- Positive cash flow – The rental income will exceed the loan repayments, even after the recent hikes in rates. This will allow investors to fast track their debt reduction.
- Capital growth – Property investment has proven time and time again to be a successful asset to generate capital growth.
- Tax deductions – There are many tax benefits when owning an investment property. Property outgoings, maintenance and tax depreciation are among potential entitlements that increase your rate of return on investment.
The rental yield is notably the most widely known benefit to investing in a NDIS property, but there are many other reasons why you can see that this is an excellent investment opportunity. Of course like any investment product or strategy comes a degree of associated risk. Understanding these risks and seeking personal tailored property advice will maximise you opportunities.
At Crest Property Investments we offer a full comprehensive process that will provide a seamless and smooth experience to clients. We partner with many professionals from lending, accounting and leasing to maximise your benefits.
What to do next?
To choose the right NDIS property, it would be very smart to seek advice from a property adviser who can help recommend the right location and property. If you’d like to learn more about how and why to invest in NDIS property, please don’t hesitate to contact us. We would welcome the opportunity to help with your property purchase.
Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
April 2024
