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Melbourne, Victoria, Australia
Why should I invest in NDIS

Before NDIS was implemented, the funding for housing people with disabilities mostly came from governments or non-profit providers using upfront capital grants.

Now, there is a growing appetite among investors for impact investing and Australian banks have become lenient and started to lend to finance SDA projects.

Banks are providing the following:

  • Home loans for participants (Bank LVR: 60% to 80%) (Shared equity LVR: 100%)
  • Investment loans for family, friends or value-aligned investors. (LVR between 60% to 80%)
  • Shared equity loans for participants and families. (LVR between 60% to 70%)
  • Commercial loans for Community Housing Providers (CHPs) and other SDA providers. (LVR between 60% to 70% depending on valuation methodology and risk analysis)

Out of the 400,000 participants in the NDIS, an estimated 28,000 of them qualify for SDA. 12,000 of them are most in need of suitable accommodation.

Out of the 12,000, half are living in aged care facilities, while the other half are living in unsuitable situations (inappropriate design, living with aging parents, etc).

The SDA scheme is designed to address the massive undersupply.

Demand is not the problem here, and if you can build the right home for the participants, then your property will not face the problem of vacancy.

Furthermore, the government wants to motivate private investment of $5 billion to encourage the build of brand-new residential properties built for inclusion in the scheme.

The government has committed $700 million per annum in the SDA scheme funding from the overall NDIS budget of $20 billion per annum.

Your investment home not only provides rental income, it provides the perfect home for Australians with disability out of inappropriate aged care and place them in suitable housing.

Post Author: editorialteam

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