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NDIS presents a smart, secured, and high-returns investment opportunity for Australians.

With up to 12% pa gross rental return, easy accessibility, a low-risk profile, and long-term viability, it’s easy to see why property investors rate the NDIS property investment as one of  Australia’s best rental returns.

Whether you’re a seasoned property investor or a hard-working homeowner looking to unlock another income stream, the NDIS offers an easy route to generate passive income, which might eventually swap out the need for a job.

In this guide, we’ll walk you through how the NDIS property investment works and how you can exploit the opportunity to up your financial game.

But first,

What is NDIS? 

Short for National Disability Insurance Scheme, NDIS is a government initiative aimed at assisting the approximately 4.3 million Australians with a disability.

With a $25 billion annual budget (powered by the Medicare Levy), the scheme is billed to run for 20 years – counting from its inception in 2016.

Under the NDIS is a housing solution initiative called the Specialist Disability Accommodation (SDA). Boasting a $700 million annual budget, the SDA is designed to provide specially-built, accessible, and affordable homes for young Australians – less than 65 years – with a disability.

For the Australian Government, this initiative delists the need to fund aged homes, hospitals, and salaries of care staff.

Besides, those with disabilities will enjoy some level of independence and be able to choose their preferred homes, at the government’s expense – a huge relief, particularly to the youthful ones who had previously been confined to hospitals or retirement homes all their lives.

To potential NDIS property investors, the meat of the initiative is the pre-calculated government-funded payment made to investors. The payment covers the initial investment cost and offers 8% to 12% returns per annum. This explains, in part, the reported 33% spike in the number of active NDIS home Providers in the last year.

The NDIS initiative is indeed a hit for Australians seeking a viable income stream to supplement their current earnings – particularly recommended for working homes looking to retire early into a reliable source of income or property investors exploring new investment opportunities.

Now, let’s delve into how NDIS property investment works.

NDIS Housing Investments Explained

With the proposed $700 million annual budget for the SDA programme, and up to 12% yearly Returns on Investment (ROI), a NDIS housing investment promises better yields than the best rental returns in Australia.

Many have turned this programme into a permanent lifetime income stream with the right guide.

If it sounds exciting and you’re wondering where to begin, the NDIS investment starts with purchasing the right property.


How do I purchase an NDIS investment property?

There are two common ways to secure an NDIS housing investment:

  • Build or Renovate an Existing Home – Getting a traditional building with SDA-required specifications is almost impossible.

Although you can buy a property and modify it to suit SDA’s taste, it’s usually a long, complex, and demanding process. Satisfying all NDIS requirements is, in itself, an area of specialization.

After finding and purchasing a suitable land, we advise you to consult a builder with NDIS property experience. With the limited number of such specialized builders, having one on your side could be a significant edge on your investment journey.

  • Purchasing an NDIS-approved property – An easier approach is purchasing an already approved property, designed and fitted with NDIS participants in mind. These ready-made houses are available through property managers and real estate specialists.

Either way, engaging an expert (who most likely has a network of professionals in the NDIS property development space) puts your right foot first on your NDIS investment journey.

Choosing a location 

If you desire a DIY land/property search, remember that the location can make or mar your NDIS property investment. When choosing a site, remember that the NDIS participants (your potential tenants) are the sole targets. Without them, your efforts would all be up in smoke.

You want a location where your kind of NDIS property design is in high demand – and yet, not saturated.

Summarily, your best bet is building a house specification that meets a form of disability in a location with high demand but limited supply. Hence, as applicable in conventional property investment, before you invest in an NDIS property, analyse the current infrastructural development and potential population growth of a location of interest.

Interestingly, many regions across the country are grossly undersupplied with NDIS housing – great news for NDIS investors and potential investors. This reassures consistent long-term returns with fewer concerns about tenant’s changeover.

Where do I find qualified tenants? 

With the NDIS market-based approach, where the forces of demand and supply apply, it’s SDA Providers’ responsibility to find qualified tenants for their property. Here are a few high-potential places to look for SDA-compliant occupants for your property:

  • Local networks
  • Organisational websites
  • NDIA’s portal
  • Participants’ support coordinators
  • Online platforms that match tenants to providers
  • Engaging a third-party property management agent

If rightly done, getting a tenant for your property can be the easiest part of your investment. If adverting and scouting for tenants seem a daunting challenge, we can help out.

Understanding SDA Housing Design Categories

SDA homes consist of four design categories:

  • High Physical Support:these structures are suited for those on physical support equipment such as a hoist or electronic wheelchairs. The buildings have special features, including emergency backup power, intercom connections for communication, strong ceilings, and related assistive technology.
  • Fully Accessible: The buildings are designed with user-friendly kitchens and bathrooms and broad doorways without steps. This design best fits people with severe physical disabilities that move in wheelchairs.
  • Robust: these are for tenants whose actions might endanger them or their careers and neighbours. The fitting, walls, windows etc. are robust and secured with soundproof features to reduce disturbances to neighbours.
  • Improved Liveability: this housing solution allows tenants with sight and cognitive disabilities to move around with little or no assistance. They incorporate user-friendly doorways, handles and switches etc. And it’s easy for occupants to see through the different spaces from one point.

These buildings range from apartments, houses, villas, townhouses, duplexes, group homes and larger dwellings.

How do NDIS property investors receive payments? 

NDIS property investors receive payments from three sources:

  • The SDA payment – this is a portion paid by the government through an NDIS-approved property manager.
  • Commonwealth Rent Assist – this payment is made by your tenant
  • Reasonable Rent Contribution – this payment is 25% of base disability supplements.

SDA pricing varies based on the dwelling type and location, among other factors. The prices and limits are well spelt out on the NDIS SDA pricing and Payment page. The prices fluctuate with the annual CPI (Consumer Price Index).

NDIS investors are paid monthly through your SDA-approved manager.

How to Get an NDIS Investment Loan

To qualify for this investment strategy requires an investment of about $300,000 in cash or an equivalent investment or/and available equity.

Given the potentiality of the NDIS property investment, some banks have welcomed the initiative and are granting loans to investors. Banking on the government’s guaranteed 20-year payment to SDA providers, financial institutions are willing to lend investors after a 20% initial deposit.

Here are helpful tips for getting an NDIS property investment loan:

  • Good credit history and credit score
  • Engage an SDA-compliant property investment manager
  • Get about a 20% deposit
  • Consistent income from stable employment

Pros and cons of NDIS investment property 

As juicy as the NDIS investment property idea sounds, as with any investment property, it has its share of disadvantages. Here are a handful of cons and pros you should know:


  • Good Return on Investment (ROI)

As mentioned, NDIS offers investors impressive returns. As long as you get an approved participant, the returns are high and low risk. If you ever considered replacing your 9-to-5 job, this may be just right.

  • Sustainable Income

Upon approval, the SDA is funded by the Australian government, assuring investors of a steady and reliable income stream.

Besides, unlike in traditional homes, SDA tenants prefer to stay in these properties for remarkably long periods – most, a lifetime. The thought of a steady long-term income is a relief to homes finding a viable stream of income in retirement.

  • Offer Social Support and Earn

The rewarding feeling that comes with knowing your investment provides a solution to persons with a disability is in a class of its own.

  • Exit Options

You can decide to sell your NDIS investment whenever you wish in the future. You can sell to another investor or convert it into a conventional residential property by taking out some disability aids and, as you wish, selling the property.


  • Capital intensive

The amount spent on your NDIS housing investment can be a fortune – from finding a suitable location and builder to scouting qualified tenants. Depending on the size and specification of the building, on averagely, you’ll be spending hundreds of thousands of dollars,

  • The demand and supply factor

You may end up disappointed and all your investment ruined if you finance a property in a location where supply exceeds demand. In this case, finding a qualified occupant becomes a holy grail – your building stays empty, and your investment won’t yield any returns.

Wrap up – is NDIS property investment worth it? 

NDIS housing investment is exceptionally rewarding.

Offering between 8% and 12% returns, here’s arguably one of the best rental returns in Australia.

Truthfully, NDIS housing investment can be somewhat complicated without the required experience and expertise. The paperwork, involved parties, technicalities, and required capital can all sum up to an overwhelming process.

But an experienced property manager can help you build this income stream without lifting a finger.

Property Investment Store provides NDIS-approved houses to investors in high-demand areas, help them get qualified occupants, and ensures they get their payments when due.

What’s more? For more enquiries, visit our FAQ page or discuss with our friendly customer support. We will recommend the best investment options that suites your investment expectations and partner with you throughout the journey.