Dangers to look out for when investing in NDIS property

When considering investing in NDIS property, it’s crucial to conduct thorough due diligence and verify that the fundamentals stack up before committing your funds. Just as you would steer clear of questionable companies on the stock market, it’s important to exercise the same caution when it comes to property investments!

Location

Choosing the right location for specialised disability accommodation (SDA) can be the difference between a successful investment and a total flop. This is because the demand for NDIS housing varies across locations. Purchasing property in an area where there is little to no demand could see the house sitting vacant for extended periods — which has huge implications on rental returns.

While it makes sense to choose areas that are close to shops, facilities, disability services and transport, we take it a step further and let the data do the talking. We have a data-driven system as well as experts on the ground to identify property that meets our strict investment criteria around demand.

Design

For the house to be suitable for people with disability to occupy it, it must comply with the SDA design standards. There are four design categories, each catering to different types of needs of the tenants.

• Fully accessible homes are built to provide a high level of physical access for those with physical impairment.
• High physical support homes are also designed for NDIS participants with significant physical impairment and require very high levels of support.
• An improved liveability home is designed to incorporate a reasonable level of physical access with enhanced provision (such as assistive technology) to help improve the liveability within the home for participants with cognitive, sensory or intellectual impairment.
• Robust homes are built with more durable building materials to provide a reasonable level of resiliency to reduce the general risk to participants who experience extreme behavioural challenges.

While complying with these design standards is the minimum requirement regarding design, it doesn’t mean the home is going to be “homely”. If an NDIS property isn’t appealing to tenants, just like regular rental properties, you run the risk of vacancy.

Design features to consider including for maximum occupancy:

• Ensuites for every bathroom.
• A solar system to reduce energy costs.
• Ensure the rooms are large enough to be considered comfortable — not just compliant.
• Low maintenance landscaping.
• Visually appealing rooms — there’s nothing worse than a home that looks like a hospital!

Construction

With the popularity of NDIS investment properties growing, there are a number of volume project builders out there trying to capitalise on the opportunity by building houses in bulk. While cookie cutter homes may offer benefits in certain situations, NDIS homes are something that require attention to detail and quality. Building a good quality home from the getgo helps with capital growth over the long-term and tenant demand in the short-term.

At Apollo Investment, we work with SDA specialist architects and builders to ensure the homes are built to the highest standard. All homes are built to strict building codes and on time with SDA post-certification and NDIS enrolment, so tenants can move in without delay!

Choose quality today

If you’re thinking about investing in NDIS property, please feel free to get in contact with us today. We’ll be more than happy to present your investment concept and building plan, including target area, architectural insights, and tenancy demand, providing you with an expectation for rental yield and capital growth figures.