NDIS Property Investment: How Location Affects Your Investment

Jan 27, 2023

The NDIS property investment drives the delivery of suitable housing for people with disabilities or NDIS participants with SDA funding. These properties are specifically designed to meet their needs and provide choice and control over where and how these people want to live their lives.


This can be an attractive investment opportunity, as the demand for NDIS properties, known as specialist disability accommodation, will likely increase as more people become eligible for SDA. 


Like any property investment, it is important to consider the property's location before proceeding with the purchase. The same is true for SDA homes. The location plays a vital role in the success of the investment affecting vacancy rate and rental income for the investor.


The general advice is that before deciding where to build investors should research and analyse the demand from the NDIS participants for SDA in the location they want to invest. The location should be in high demand and easily accessible for individuals with disabilities providing easy access to medical centres, shops and entertainment facilities.


Here are some aspects to consider when evaluating the location of a potential NDIS property investment.


Location Considerations for Successful NDIS Property Investment


Accessibility

The property should be easily accessible for people with disability. This means it should be in a safe and convenient area, with good transportation links and close to amenities such as shops and medical facilities.


Demand

It is important to consider the level of demand for properties in the area. This can be influenced by factors such as the local economy, population growth, and the availability of other disability housing options.


Rental yield

The rental yield is the annual return on an investment, calculated as the rental income divided by the property value. A higher rental yield generally indicates a more financially viable investment.


Capital growth

Capital growth is the increase in the value of an asset over time. A property that is likely to experience strong capital growth can be a good investment, as it has the potential to increase in value and provide a profit when it is sold.


Quality of life

The location of a property can also impact the quality of life of those living there. Factors such as the local environment, community amenities, and access to services and support can all contribute to a higher quality of life. This will help ensure that tenants have access to the support they need to live independently.


Other Considerations for NDIS Property Investments

In addition to the above considerations, there are more specific factors to consider when selecting a location for an NDIS property investment.


Oversupply

The availability of other disability housing options in the area should also be considered. Meaning, if the area is highly saturated with SDA houses, it is less likely you will find tenants for your investment property.


Support services

It’s essential to check the availability of disability support services in the area, as people with disability often require assistance with daily tasks such as personal care, transportation, and home maintenance.


Community support

The level of community support in the area can also be a factor, as people with disability may benefit from being part of a supportive and inclusive community.


Future developments

It is also worth considering any future developments in the area, as these may impact the demand for properties and the potential for capital growth, just like it would for a non-SDA investment property.


Navigate the Complexities of NDIS Investment with Us


Investing in NDIS property can be a complex process with many factors to consider and potential risks to manage. NDIS Property Australia can play a valuable role in helping you
navigate this process and make informed decisions about your investments.


NDIS Property Australia can provide information and advice about
SDA property investment, including the potential risks, benefits, and how to research and evaluate different locations.


In addition, we can connect you with trusted and reliable builders and other stakeholders.


By working with NDIS Property Australia, you can access a range of properties that have been carefully selected and vetted to meet the participants' needs and goals.


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