Frequently Asked Questions
1. Can I purchase an NDIS property through a SMSF?
You can but obviously only as a single contract. What this means is that you would need to purchase the property in cash from your SMSF.
3. How long will it take to build an SDA home?
You need to allow around 6 months to build an NDIS SDA approved home. Your house will be built as a construction loan with 5 drawdown stages under a fix priced building contract.
- These homes are built to exact specifications – which is why it’s a little longer than a normal build
- It must be very specific – even if the driveway is slightly out which will cause a wheelchair to roll down, the builder needs to rectify
- Compliance not til NDIS home completed
5. What is the length of a typical rental lease?
- What makes a forever home for NDIS tenants?
- A home, not a house.
- These NDIS homes that we at Elever Property Group send out; are built at a very high standard.
- They do not present any hostel or disability housing appearance
- They are built and design above spec
- A home, not a house.
6. Can you guarantee 100% occupancy?
- PLEASE NOTE
- If ever a tenant leaves. The government replaces that rental income for 3 months until a new NDIS tenant is placed
8. How do I receive my payments from an NDIS SDA Investment Property
- Fair rent contribution: (25% of base disability supplement) Paid Fortnightly by the participant (tenant)
- 100% Commonwealth Rent Assistance Paid Fortnightly by the participant (tenant)
- NDIS SDA Payment (Refer to the NDIS SDA Schedule: Paid Quarterly in arrears
2. Is there anything special I need to do/setup when purchasing an NDIS SDA investment property?
A Family Trust is worth considering for holding this type of investment due to it’s tax benefits, but I suggest that you speak to your Accountant or Financial Advisor (helpful if they know NDIS) for advice to suit your needs.
4. Who finds suitable tenants for each property?
SDA Manage Australia (SDAMA) is a specialist property management firm that works with NDIS Service Providers in assisting their NDIS clients to apply for and be placed in suitable Specialist Disability Accommodation. This process starts as soon as the property has been registered with SDA and the commencement of the build, with the intention of having the property occupied as soon as possible after the property is completed.
- PLEASE NOTE
- Because building compliance can’t be met until ‘after build completion’ the house cannot be rented out to a NDIS tenant
- So in a situation like this, a tenant is placed in there for let’s say 6 month rental agreement where the house will be rented to a NON-NDIS member. This provides the property owner with an income until Compliance is met and NDIS tenants placed
- New policies are being introduced throughout the year and we will hopefully see the introduction of pre certification of SDA dwellings.
- Once it hits Unconditional finance – the process to start finding NDIS participates commences. It’s just the compliance that takes the longest atm
- There is a big short list of NDIS eligible tenants
7. What happens if I lose a Tenant?
Like all ongoing investment property ownership, there is always the risk of losing a Tenant, although research has shown that once someone with a disability finds a home they are happy with, they don’t ever want to move, although once your property has been enrolled and tenanted initially, the NDIS has allowances for vacancy payments (NDIS SDA portion only). The amounts covered are for up to 60 days for properties with 2 or 3 participant rooms, and for up to 90 days for properties with 4 or 5 participant rooms.
Attractive to investors wanting long term steady income, while providing market beating yields. Just two of the reason’s property investors love NDIS