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Advantages Of NDIS SMSF Property Investment

03 AUG 2023 By One Contract Property 1 min read Investor Strategy

NDIS SMSF property investment gives Australian investors a chance to give back to the countless individuals and their families living with a disability.

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The NDIS is the brainchild of the Gillard Government and was legislated in 2013.

At the time, the scheme was labelled a world first, that would play a crucial role in helping hundreds of thousands of Australians living with disability.

The heart of the NDIS beats to ensure that the costs associated with disabilities are fully funded, with an impressive annual budget of $35 billion dedicated to supporting over 500,000 individuals and families in need.

NDIS SMSF property investment has in recent years developed a fairly mixed reputation, one reason for this is a small percentage of NDIS specialists fail to understand that NDIS is a participant-led model.

When NDIS SMSF property investment is done correctly, the over 500,000 individuals and their families living with disability have the opportunity to implement some normalcy back into their lives.

Types of SDA housing are placed in four categories:

  • Improved livability
  • Robust
  • Fully accessible
  • High physical support

Are you looking at investing your super into brand-new NDIS SMSF properties?

Here are some compelling reasons why NDIS property investment is a rewarding path to consider.

  1. Above-average rental income

NDIS property investment is seen as a karma investment and therefore is rewarded as such through rental income.

Average annual rental returns are currently estimated at 11%, placing NDIS properties as one of Australia’s best rental returns.

  1. SDA funding is guaranteed until 2036

Under the guidance of Anthony Albanese, the Labor government has firmly pledged its commitment to guaranteeing SDA funding until 2036.

This ensures that the annual budget of $35 billion will continue to uplift lives well into the next decade.

  1. SDA payments are government-backed

Essentially, SDA payments come from the government, therefore, there is an element of security for all investors looking to invest in the SDA real estate market.

This underpins the trust and confidence in the SDA real estate market, offering reassurance to all those keen on making a meaningful impact.

  1. Low risk of tenant vacancy

Due to the high demand for SDA housing and the growing number of NDIS participants, the risk of tenant vacancy is relatively low.

Your investment can thrive as you contribute to meeting a pressing need in the market.
If you’re interested in beginning your NDIS SMSF property investment journey, connect with the One Contract Property team for further assistance.

RELATED TERMS

Investment
An investment is an asset or item purchased with the expectation that it will generate income or appreciate in value in the future.
Property
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.
SMSF
A self-managed super fund is a private super fund that provides benefits to its members upon retirement, directly managed by an individual for their benefit and in compliance with super and tax laws.
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