The National Disability Insurance Scheme (NDIS) has created new opportunities for property investors looking to support disability housing while benefiting from this growing market in Australia. NDIS properties are a specialised investment opportunity catering to the needs of NDIS participants, offering potential tax implications, design modifications to meet accessibility standards, and advantages such as higher rental yields and long-term tenancies backed by government funding.
The NDIS provides funding for Specialist Disability Accommodation (SDA) under its Specialist Disability Accommodation scheme. This has led to a strong demand for accessible, purpose-built dwellings catering to the needs of Australians with disabilities.
Unfortunately, the current supply still falls short, opening up a supply-demand gap that gives Australians an attractive investment proposition. To combat this, the government actively encourages private capital to help bridge this shortfall and fill the accessibility housing void.
Luckily, several incentives are available for property investors willing to enter this emerging niche.
In this guide, we’ll walk you through NDIS property investments and show you how potential investors can evaluate the risks, returns, and intricacies of entering this space, including the benefits of SDA property investment.
NDIS Investments Overview
The National Disability Insurance Scheme (NDIS) is a transformative government initiative launched in 2016 with the primary goal of enhancing the quality of life for Australians with disabilities. The NDIS aims to provide comprehensive support that enables individuals to live more independently and participate actively in their communities.
By offering individualised funding and support, the scheme empowers participants to make informed choices about their care and services, tailoring assistance to meet their unique needs and preferences. Collaboration with NDIS service providers is crucial for securing funding and ensuring compliance for NDIS property investments.
How the NDIS Supports People with Disabilities Through Housing Investments
The NDIS supports people with disabilities through a variety of funding options and services designed to promote independence and improve quality of life.
One of the key components of this support is Specialist Disability Accommodation (SDA), which provides purpose-built housing for individuals with extreme functional impairments or very high support needs. Understanding the SDA market, including compliance requirements and market trends, is crucial for successful NDIS property investments.
In addition to SDA, the NDIS offers funding for home modifications, assistive technology, and a range of support services. These resources help participants achieve more independent living arrangements, ensuring they have the necessary tools and environments to thrive.
What is Specialist Disability Accommodation (SDA) From An NDIS House Investment Standpoint?
Specialist Disability Accommodation (SDA) is a critical element of the NDIS, designed to meet the housing needs of individuals with significant functional impairments or high support requirements.
SDA properties are purpose-built to provide accessible and supportive living environments, enabling residents to live independently.
These accommodations include features such as wheelchair accessibility, reinforced walls for support equipment, accessible connections between car parks and dwellings, robust design features for challenging behaviours, emergency power systems, assistive technology integration, ceiling hoists, fire-safe designs, heating and cooling systems tailored specifically for disability needs.
SDA housing investments offer a unique opportunity for property investors to contribute to the well-being of NDIS participants while benefiting from potentially strong rental yields. By investing in SDA properties, investors can help address the current shortfall in accessible housing.
SDA Building Standards and Requirements
If you’re getting a Specialist Disability Accommodation (SDA) property, it must adhere to the building standards outlined by the SDA Design Standard effective July 1, 2021.
These standards include the following:
- Wheelchair accessibility in entryways, doorways, and internal circulation spaces
- Reinforced walls for support equipment
- Accessible connections between car parks and dwellings
- Ground-floor amenities
- Robust design features to withstand challenging behaviours
- Emergency power systems, assistive technology integration, ceiling hoists, fire-safe designs, heating and cooling systems tailored for disability needs
Meanwhile, the certification process involves a rigorous assessment process by accredited assessors who verify compliance with SDA Design Standards.
Properties must meet specific criteria across four categories: Improved Livability (moderate accessibility), Fully Accessible (wheelchair-friendly), Robust (durable for challenging behaviours), and High Physical Support (most complex).
Collaborating with reputable SDA providers is crucial for managing tenant placements and ensuring compliance with NDIS regulations.
Potential Pitfalls of SDA Investments
Besides meeting certain requirements, it’s best for you to temper your expectations when investing in SDA properties. Here are some pitfalls you may face:
- Tenant Vacancies: High vacancy rates can occur if properties are in oversupplied or poorly chosen locations. Tenant preferences towards apartments near amenities have increased vacancy risks for standalone homes in outer suburbs.
- Funding Changes: Government policy shifts can impact occupancy rates and funding stability. It’s important to stay updated with policy changes that influence SDA funding benchmarks.
- Oversupply Risks: Certain markets face oversupply issues, particularly regional towns or outer-suburban areas. Oversupply can lead to reduced rental incomes and diminished property values.
Conducting Due Diligence on Your NDIS Housing Investment
While investing in NDIS housing promises attractive yields, it still needs a thorough evaluation like any other investment. We always recommend going through detailed due diligence before committing funds.
When assessing potential returns, aim for realistic projections based on actual development costs and fees. Although some claims suggest rental yields between 10-25%, after accounting for expenses such as vacancy periods, landlord insurance, and maintenance costs – and considering stricter lending policies introduced in 2025 – actual net yields may be lower.
It’s crucial to manage SDA payments effectively by ensuring an approved NDIS participant occupies your property. This process mirrors traditional investment property rentals where accredited property management companies collect payments monthly on behalf of landlords.
Study local market demand dynamics thoroughly through research and expert advice on SDA housing investment opportunities across Australia.
Target areas facing undersupply and ensure that good infrastructure supports local residents’ daily living needs. Tenant preferences have evolved recently towards apartments near amenities rather than standalone homes in outer suburbs or oversupplied regions.
We also recommend educating yourself thoroughly on updated SDA investment property rules relating to:
- Housing types
- Accessibility requirements
- Modifications
- Policy changes and trends
All properties must comply fully with these updated standards to qualify for ongoing NDIS and SDA funding.
How to Purchase An NDIS Investment Property
Once you’ve completed your risk assessment and due diligence process, it’s time to purchase a property. Here’s what you need to know about getting an NDIS investment property:
Research Average Market Rents and Growth
You should have already done this, but if not, conduct detailed research to understand NDIS property demand and supply dynamics in different locations. Focus on areas facing undersupply, as they will likely have the strongest occupancy rates, growth and yields.
Partner With A Specialist
Partner with a reputable NDIS-approved property firm or specialised consultant experienced in navigating complex compliance requirements and sourcing eligible tenants effectively.
Finance Appropriately
Lending rules have tightened significantly in 2025; minimum deposit requirements have tightened further, with lenders requiring at least 20% depending on the location and oversupply risks. Certain postcodes are also blacklisted due to insufficient demand.
Specialised NDIS property loans are also available to fund both purchases and construction costs. However, you’ll need to prepare for higher deposits – factor in stamp duty valuations and concessions for disability accommodation across different states.
Buy Off the Plan
Purchasing an NDIS housing investment or land package specifically designed for SDA properties can be an effective approach, allowing input into accessibility features. However, be aware that delays are common with new builds, especially as there have recently been delays in acquiring building materials in Australia.
We also recommend speaking to our pre-purchase property valuations team if you’re looking into a new build, as we can help weigh up the pros and cons for you.
Policy Updates That Can Affect You When Investing in NDIS Housing
Recent legislative changes introduced more flexible funding options alongside streamlined approval processes aimed at reducing waiting times significantly whilst improving investor confidence overall.
However, stricter lending policies implemented recently require higher deposits, particularly within oversupplied regions or blacklisted postcodes where banks restrict financing options.
Case Study: Depreciation Benefits from an NDIS Granny Flat Investment
To illustrate how planning can enhance returns on your NDIS property investment, let’s consider a real-life example we featured on our YouTube channel.
An investor built an NDIS-approved granny flat designed to meet Specialist Disability Accommodation (SDA) standards, including advanced accessibility features tailored for residents with high support needs.
By partnering with quantity surveyors, the investor was able to claim a substantial $247,200 in depreciation deductions over a 40-year period.
This strategic approach significantly improved the investor’s annual cash flow and reduced their taxable income each financial year.
When investing in NDIS housing, carefully considering design standards, complying with the requirements, and targeting depreciation opportunities can substantially enhance your cash flow.
You can watch the full video here to learn more about how to maximise your NDIS investment property’s financial performance.
Key Takeaways
- Deposits are now typically higher, with lenders requiring at least 20%.
- Thoroughly understand updated building standards & certification processes.
- Be cautious about tenant vacancies & oversupply risks.
- Plan exit strategies carefully, considering limited buyer pools & resale challenges.
- Engage accredited specialists & managers proactively.
- Stay informed regarding ongoing policy shifts impacting profitability directly.
Need a tax depreciation schedule for your NDIS property?
Talk to one of our friendly qualified quantity surveyors to handle your NDIS property.
Tuan is an award winning Quantity Surveyor and leads Duo Tax Quantity Surveyors – Australia’s fastest growing provider of Tax Depreciation.
