The 2024 hidden investment to acheive ULTRA HIGH Cash Flow from 1 Investment Property.

The National Disability Insurance Scheme is a government initiative

implemented to provide financial assistance to families, carers and more

than 550,000 Australians with a significant and permanent disability.

The NDIS is designed to assist people with disabilities to live more

independently resulting in better quality of life.

There is a huge shortage of suitable accommodation currently available for NDIS participants. Recent government estimates are that in addition to the 22,680 people already residing in SDA housing, a further 13,321 people may require SDA. Of these, 2,934 people are currently residing in aged care facilities despite being under 65 years of age (as at 30 June 2022)! Furthermore, 9,700 participants who are currently in SDA existing and legacy housing will need their existing home replaced by new stock in the coming years.

Yes. The SDA funding under the NDIS is a legislated commitment of

Australia’s Commonwealth, State and Territory governments, set out in

the NDIS SDA Rules (2-18) under the NDIS Act 2013. This legislation

provides the foundation for government’s long term and firm

commitment to SDA funding under the NDIS. Beyond the legislative

commitment, SDA funding enables eligible participants to achieve

better outcomes while representing value for money for the NDIS.

saving the government and taxpayers a lot of money otherwise spent

on accommodating the applicants themselves.

There’s a bipartisan agreement that’s been signed off by all the parties in Canberra – the scheme has a 20-year timeframe of NDIS Certification. All the States and Territories also are unified in this program to ensure federal funding goes where it’s supposed to go. To change or remove such legislation, it would need a lot of political will and time-consuming discussions, resulting in substantial expenses to accomidate for participants in hospitals once again.

1. Tenant Reliability:

• Relying on NDIS funding for rental income means your income is tied to government payments, which can be subject to delays, changes in eligibility criteria, or budget cuts. This can result in inconsistent income.
• Solutions - Diversify Tenant Base & Emergency Fund: Consider having a mix of NDIS-funded and non-NDIS-funded tenants to reduce dependency on NDIS payments. Build up an emergency fund to cover expenses during periods of delayed NDIS payments.

2. Property Mandgement:

• Managing an NDIS investment property can be more complex than traditional rentals. You may need to coordinate with support providers and ensure the property meets specific accessibility requirements. Finding a competent property manager with experience in NDIS properties is crucial. Solutions - Experienced Property Manager & Regular Inspections: Hire an experienced property manager who specialises in NDIS properties and understands the intricacies of dealing with NDIS tenants and support providers. Conduct regular property inspections to ensure that it meets NDIS requirements and is well-maintained.

3. Regulatory Changes

• Changes in NDIS regulations or policies can impact your investment. For example, alterations in the types of support funded by NDIS or shifts in eligibility criteria may affect the demand for your property.
• Stay Informed: Stay updated on NDIS policy changes and adapt your investment strategy accordingly. Joining industry associations or networks can help you stay informed.

4. Vacancy Rates

• While the demand for NDIS housing is generally high, there can still be periods of vacancy. You may face challenges in finding suitable tenants or dealing with tenant turnover. Build the right property: Building a property which is future proofed (fire sprinklers, courtyards) mitigates the risks of having vacancies in the future. The Participant will always pick the home that best suits their needs. Marketing: Use effective marketing strategies to attract NDIS participants. Collaborate with local support providers and NDIS agencies to increase visibility.
• Longer Leases: Consider offering longer-term leases to provide stability for tenants and reduce turnover.

5. Property Modifications

• NDIS properties may require special modifications to meet accessibility and safety standards. These modifications can be costly, and if not done correctly, they may impact the property's value.
• Proper Planning: When purchasing or renovating an NDIS property, work with professionals who are experienced in NDIS requirements to ensure modifications are done correctly and cost-effectively.
• Insurance: Ensure you have adequate & relevant insurance coverage to protect against potential damage caused by modifications.