Then NDIS investment property might be the right one for you.
Investing in NDIS property net rental return. Estimated returns between $95,000 and up to $115,000 per annum, per property.
What is an ‘NDIS’ Property?
The NDIS is a new and evolving 20 yr scheme providing a powerful punch to investors.
20 years? What does that even mean? For investors, it’s high yield property income where the Government will pay the rental costs of the participant, for 20 years.
Why consider NDIS homes? Ok, so with Higher Returns aside, NDIS Tenants are considered ‘Life Tenants’. Many disabled SDA residents want to “stay for life” when they’re inappropriate homes, that is why we refer to these homes as their “Forever Home”.
Research states that there needs to be a 60% increase in the number of available disability homes.
We can make investing in NDIS/SDA property an easy process
To show the process we will use a typical 4 bedroom home as an example.
4 Bedroom, 4 Bathroom Home This caters for 3 tenants/participants and 1 onsite overnight carer $640,000
Initial Deposit on signing an Expression of Interest is $1,000. This secures the land (No Commitment) but held for the client whilst the contract process takes place. It takes 2 to 5 working days for both land and build contracts to be prepared and they then go out to be signed by purchasers: Once contracts are returned, they are signed by the land developer and builder.
Contract dated after the last person signs the land contract.
(This is usually the land developer or his solicitor). From the date of contract there are 5 working days cooling-off period and if the contract is not Subject to Finance now becomes unconditional. (usually a Cash Contract)
If the contract is still subject to finance, it becomes unconditional after finance approval. (Usually 21 Days STF but extension granted where lenders take longer than expected) Now the balance of the deposit is due on land including the $1,000 initial deposit. Normally this is 5% of the land value.
Land contract is now unconditional
Builder may invoice for 1st progress build deposit 5% (Refer to progress payment (1) of build contract) this may sometimes happen at unconditional or after the land settles. Council, usually 2 weeks for approval plans (can Vary) after approval footing payment due etc – Refer to build Contract for progress payment schedule to settlement.
Usual deposit conditions 5% deposit on both house & land Balance land deposit to 5% on unconditional.
The land is land tax-exempt and stamp duty is only payable on the land
When the land contract is unconditional
The plans are ready to submit to the council.
The land contract settles -The builder has confirmed by letter from the certifier that the plans are compliant, the builder will lodge plans and wait for approval of drawings from Council.
Click the NDIS Investment Properties Menu Button for more information.