NDIS Home Loans: Ultimate Guide for Investors

NDIS Home Loans: Ultimate Guide for Investors
NDIS Home Loans


NDIS home loans are a specialised type of financing designed to help investors acquire properties specifically built or modified to accommodate the needs of participants in the National Disability Insurance Scheme (NDIS).

This guide provides a comprehensive overview of NDIS property investment, explaining the program, the unique properties involved (SDA), and the considerations you’ll encounter as you explore this investment opportunity.

What is the NDIS?

The NDIS (National Disability Insurance Scheme) is a relatively young program, launched in 2013 by the Australian Government. It aims to provide individuals with permanent and significant disabilities with the support they need to live an independent and fulfilling life.

NDIS funding covers a wide range of services and supports, including:

  1. Assistance with daily living activities
  2. Assistance finding and securing employment
  3. Support workers and therapists
  4. Assistive technology
  5. Modified vehicles
  6. Specialist disability accommodation (SDA).

NDIS Availability Across Australia

The National Disability Insurance Scheme (NDIS) is a nationwide program available to eligible Australians across all states and territories.  This means no matter your location in Australia, you can apply for NDIS funding if you meet the criteria.

The NDIS is progressively rolling out across the country. While full national coverage has been achieved, some areas may have recently transitioned. This means wait times for assessments and plan approvals could vary slightly depending on your location.

As of June 2023, the NDIS has grown significantly, supporting over 530,000 participants across Australia. The scheme also injects billions of dollars annually into the economy through participant funding and associated services.

Special Disability Accommodation (SDA) Explained

Special Disability Accommodation (SDA) refers to dwellings designed or modified to meet the specific needs of NDIS participants. These properties offer features that enhance accessibility, safety, and liveability for individuals with disabilities.

There are four design categories for SDA properties, each with varying levels of accessibility and support features:

  1. Improved liveability
  2. Robust
  3. Fully accessible
  4. High physical support.

By catering to a range of disability types and needs through these distinct design categories, SDA properties play a crucial role in empowering NDIS participants to live more independently and comfortably within their own homes. This not only improves their quality of life but also strengthens social inclusion within the broader community.

Benefits of Investing in SDA Properties

Investing in SDA properties offers several advantages:

  1. Stable and supported rental income: The NDIS provides direct rental payments to landlords of approved SDA properties, ensuring a reliable income stream.
  2. Government-backed guarantee: Rental payments are guaranteed by the NDIS, minimising the risk of vacancy or tenant default.
  3. Long-term investment: NDIS funding is committed for the long term, providing stability for your investment.
  4. Making a positive impact: By providing high-quality SDA housing, you contribute to improving the lives of NDIS participants.

Expected Rental Yields for SDA Properties

Rental yields for SDA properties can be significantly higher than those of traditional investment properties. The exact yield will depend on the location, design category, and the number of residents. Locations with high demand for SDA housing typically offer stronger returns.

While the yield can range from 7% to 18% per annum, it’s important to remember that these are gross yields and don’t factor in ongoing property management and maintenance costs.

NDIS Property Investment Considerations

Before embarking on NDIS property investment, it’s crucial to consider several factors:

  1. Understanding the NDIS: Familiarise yourself with the NDIS program and its guidelines for SDA properties.
  2. Property selection: Build or purchase an established SDA property in a high-demand location and ensure it meets NDIS design standards.
  3. Long-term commitment: NDIS property investment is a long-term strategy, requiring ongoing management and potential maintenance needs specific to SDA features.

Understanding SDA Dwelling Types by Property Style

While the NDIS categorizes dwellings based on accessibility features (Improved Liveability, Robust, Fully Accessible, High Physical Support), investors should also consider the actual property style.

This plays a role in potential tenant needs and overall investment strategy. Here’s a breakdown of common dwelling types within the SDA market:


Suitable for some NDIS participants, particularly those requiring Improved Liveability or Robust features. Apartments can offer benefits like lower maintenance for landlords and accessibility features within the building itself. However, some layouts might not be easily adaptable for extensive modifications.


Duplexes can be a good option for investors seeking to cater to a wider range of participants. One side of the duplex could be designed to meet Fully Accessible standards, while the other caters to Robust or Improved Liveability needs. This allows for potential rent diversification.


Similar to duplexes, townhouses offer some flexibility.  Investors can choose to develop a whole townhouse complex with varying accessibility categories across the units.  This can attract a wider pool of tenants while maximizing investment potential.


Freestanding houses offer the most design freedom for investors.  A single house can be built to meet any of the SDA design categories, allowing for a high level of customization based on your target tenant group.  However, ongoing maintenance for larger properties can be a consideration.

Understanding SDA Design Requirements

To qualify as Specialist Disability Accommodation (SDA), dwellings must meet specific design standards established by the NDIS. These standards ensure properties are accessible and safe for participants with disabilities. Here’s a summary of the key design requirements:

  1. Universal design principles: SDA dwellings should follow universal design principles, meaning features are usable by people with a wide range of abilities. This can include aspects like wider doorways, lever handles, and step-free access.
  2. Accessible bathrooms: Bathrooms are a critical area for accessibility. Requirements may include grab rails around toilets and showers, shower seating, and accessible vanities.
  3. Kitchens: Kitchens should be designed for ease of use, with features like lower benchtops, accessible cabinetry, and clear manoeuvring space.
  4. Assistive technology integration: Some dwellings may require features to accommodate assistive technology, such as reinforced walls for hoist installations or smart home system compatibility.
  5. Outdoor areas: Outdoor spaces should also be accessible, with features like level pathways, ramps where necessary, and usable handrails.

Locating Suitable Tenants for Your SDA Property

Finding qualified tenants for your Specialist Disability Accommodation (SDA) property is an important step in ensuring a successful investment. Here’s a breakdown of key strategies to connect with potential tenants:

  1. NDIS provider networks: NDIS service providers work directly with participants to identify suitable housing options. Building relationships with local providers can help them connect potential tenants to your SDA property.
  2. Specialist disability accommodation listings: Several online platforms specialise in listing and searching for SDA properties. Registering your property on these platforms can increase visibility to NDIS participants and their support networks.
  3. NDIS website: The NDIS website offers a Find a Provider search function that allows participants to locate suitable housing options.
  4. Disability advocacy organisations: Connecting with local disability advocacy organisations can be another avenue for finding tenants. These organisations often maintain databases where they can share details about your SDA property with interested participants.
  5. Real estate agents: Real estate agents specialising in SDA properties can help you market your property effectively and screen potential tenants to ensure a good fit.

Tenants Without Direct NDIS Funding

While NDIS funding provides a significant benefit for NDIS property investment, it’s important to understand that not all tenants will have it. Here’s what you need to know:

  1. Alternative funding sources: Some tenants may have alternative funding sources for their rent, such as pensions or private funding arrangements.
  2. Market rent vs. NDIS rates: Rents for SDA properties with NDIS funding are typically higher than standard market rates. If your tenant lacks NDIS funding, you’ll need to adjust your rental expectations to align with the standard market rate for a similar property in your area.
  3. Tenant suitability: Regardless of funding source, prioritise finding a tenant who is a good fit for your property. This includes considering their needs, lifestyle, and ability to maintain the property.

Understanding NDIS Rent Payments

For NDIS-funded tenants, the process of receiving rent payments differs from traditional rentals. Here’s a breakdown of the key points:

  1. NDIS payment process: The NDIS pays rent directly to the landlord, not the tenant. This ensures rent payments are reliable and on time.
  2. Payment schedule: NDIS rent payments are typically made monthly and directly deposited into your nominated bank account.
  3. Rent setting: NDIS rent prices are determined based on a combination of factors, including the type of SDA dwelling, location, and the specific supports required by the tenant.
  4. Market rent vs. NDIS rates: Rents for SDA properties with NDIS funding are generally higher than the standard market rate for similar properties. This reflects the additional features and accessibility considerations of SDA dwellings.

The Option to Build or Purchase an SDA Property

Investing in NDIS properties offers an opportunity to make a positive social impact while generating a stable income stream. However, a key decision you’ll face is whether to build a new SDA property or purchase an existing one.

Both options have their advantages and disadvantages, and the best choice for you will depend on your risk tolerance, budget, experience level, and investment goals.

Building a New SDA Property

Consider the following pros and cons of building a new SDA property:


  1. Customisation: You have complete control over the design and features of the property, ensuring it perfectly meets NDIS SDA standards and caters to a specific need within the participant community.
  2. Potential for higher yields: Newer properties with modern, high-quality features may attract higher rental rates.
  3. Tax benefits: There may be potential tax benefits associated with depreciation on new buildings (consult a tax professional for specific advice).


  1. Time commitment: Constructing a new property can be a lengthy process, requiring planning, obtaining permits, and managing construction timelines.
  2. Higher upfront costs: Building an SDA property typically involves higher upfront costs compared to purchasing an existing one, including land acquisition, construction materials, and builder fees.
  3. Market fluctuations: The construction industry can be susceptible to fluctuations in material costs and labour availability, potentially impacting the final budget.

Purchasing an Existing SDA Property

Let’s explore the advantages and disadvantages of purchasing an existing SDA property:


  1. Faster entry into the market: Existing properties offer a quicker entry point into the NDIS investment market, allowing you to start receiving rental income sooner.
  2. Lower initial investment: Generally, requires a lower initial investment compared to building new, potentially making it easier to secure financing.
  3. Reduced risk: Less susceptible to unexpected cost increases that can occur during construction projects.


  1. Limited control: You may need to make modifications to ensure the property meets the required NDIS standards, potentially impacting your budget.
  2. Potential for outdated features: Older properties might not have the most modern accessibility features or energy efficiency.
  3. Competition: Existing, well-maintained SDA properties can attract significant interest from other investors, potentially leading to higher purchase prices.

Carefully consider your investment goals, budget, and risk tolerance when choosing between building or purchasing an existing SDA property. Consulting with a financial advisor experienced in NDIS investments and a property professional specialising in SDA properties can provide valuable guidance throughout the decision-making process.

NDIS Home Loan Options

Securing the right financing is a critical step in realising your NDIS property investment goals. This section explores the different NDIS home loan options available and the key factors to consider when choosing a loan.

There are two main financing options for acquiring an SDA property:

Standard Investment Loans

These loans are offered by most major banks and lenders and can be used to purchase any type of investment property, including SDA. However, standard investment loans may not always consider the unique features and potential benefits of SDA properties when determining loan terms, the borrowing capacity or interest rates.

Specialist NDIS Home Loans

NDIS home loans are designed specifically for financing SDA investments. NDIS property lenders often understand the specific considerations of SDA properties and may offer loan features tailored to this market. This can include:

  1. Higher Loan-to-value ratios (LVRs) to account for potentially higher construction costs of SDA properties.
  2. Competitive interest rates that recognise the government-backed rental income stream.
  3. Higher rental rates due to the government-backed rental income.
  4. Loan terms structured to align with the long-term nature of NDIS funding.

Key Considerations When Choosing a NDIS Home Loan

Several factors influence the choice of your NDIS home loan:

  1. Interest rates and fees: Compare interest rates and associated fees from different lenders.
  2. Loan features: Consider the loan amount offered, LVR, loan terms, and any specialised features for NDIS properties.
  3. Lender experience: Choose a lender with experience in NDIS property financing and a strong understanding of the market.
  4. Customer service: Ensure the lender offers clear communication and efficient loan processing.

Features and Benefits of NDIS Home Loans

NDIS home loans can offer several advantages compared to standard investment loans:

  1. Higher loan amounts: NDIS lenders may offer higher loan amounts due to the government-backed rental income and potential for higher property valuations.
  2. Favourable interest rates: Competitive interest rates can improve your investment returns.
  3. Higher rental yields: This is due to the higher government-backed rental income compared to standard houses.
  4. Flexible loan terms: Loan terms may be structured to align with the long-term funding provided by the NDIS.
  5. Streamlined process: NDIS lenders may have a streamlined application process familiar with the specific requirements of SDA properties.

Understanding the specific features and benefits offered by NDIS home loans can help you choose the most suitable financing option for your investment.

Securing Your NDIS Home Loan: A Step-by-Step Guide

Obtaining an NDIS home loan involves meeting specific eligibility criteria and completing the application process. This section provides a clear roadmap to navigate securing financing for your SDA investment.

Eligibility Requirements for NDIS Home Loans

NDIS home loan eligibility criteria can vary depending on the lender, but some general requirements include:

  1. Financial strength: Demonstrating a strong financial position with a good credit score, stable income, and manageable debt levels.
  2. Deposit requirement: Most lenders require a deposit, typically ranging from 10% to 20% of the property value.
  3. Investment experience: Some lenders may prefer borrowers with experience in property investment.

The NDIS Home Loan Application Process

The NDIS home loan application process typically involves these steps:

  1. Initial inquiry: Contact your chosen lender or the broker to discuss your project and eligibility.
  2. Documentation gathering: Prepare required documents, including financial statements, tax returns, and property details.
  3. Formal application: Submit a formal loan application with all necessary documentation.
  4. Valuation and approval: The lender will arrange a property valuation and assess your application.
  5. Loan offer and settlement: If approved, you will receive a loan offer outlining the terms and conditions. Upon acceptance and completion of any final steps, the loan will settle, and funds will be released for your property purchase.

Unlock Investment Opportunities in NDIS Properties with DotCapital

Looking to invest in Specialist Disability Accommodation (SDA) and secure a competitive NDIS home loan? Look no further than DotCapital, your one-stop shop for financing your NDIS investment goals.

Our experienced mortgage brokers understand the unique needs of NDIS home loans and can guide you through the process seamlessly. We offer a range of loan options with attractive interest rates, catering to your specific investment strategy.

Contact DotCapital today for a free consultation and let’s discuss how we can help you achieve your NDIS property investment goals! Call us on 03 8707 2892 or click the button below to get a pre-approval.

FAQs About NDIS Home Loans

Considering venturing into the world of NDIS property investment? It’s a decision packed with potential, but also questions. This FAQ section aims to address some of the most frequently asked questions (FAQs) to help you navigate the key considerations and make informed choices.

Are NDIS property loans different from regular investment loans?

Yes, NDIS property loans can offer several advantages compared to standard investment loans. They may have features like higher loan-to-value ratios, competitive interest rates reflecting the government-backed rental income, and loan terms aligned with NDIS funding.

What are the challenges of investing in NDIS properties?

Finding suitable SDA properties and managing tenants with disabilities can be challenges. However, with proper research, planning, and potentially a property management team experienced in SDA, these challenges can be mitigated.

How can I maximise the returns on my NDIS property investment?

Choosing a high-demand location, selecting a well-designed SDA property, and partnering with a reliable property management team can help maximise your returns.

Can I buy a house with my NDIS funding?

No, you cannot directly purchase a house with your NDIS funding.

NDIS funding is designed to support the needs of participants with a disability and improve their daily living.  While housing is an essential part of daily life, NDIS funding is not intended for direct property purchase.

However, there are ways NDIS funding can be used in conjunction with property investment:

Funding modifications to an existing home: If you are an NDIS participant and require modifications to make your current home more accessible, you may be able to use your NDIS funding to cover these costs.

Investing in Specialist Disability Accommodation (SDA): The NDIS program supports the creation of specialized housing designed for people with disabilities. You can explore options for investing in approved SDA properties and receiving rental income through the NDIS scheme.

What is NDIS investment property?

NDIS investment properties, also known as Specialist Disability Accommodation (SDA), are dwellings specifically designed or modified to meet the needs of participants in the National Disability Insurance Scheme (NDIS). These properties offer features that enhance accessibility, safety, and independent living for individuals with disabilities.

Is it worth investing in NDIS property?

It depends on your goals and risk tolerance. Consider the potential benefits like stable income and social impact, alongside factors like higher upfront costs, ongoing management needs, and the importance of location.

Conduct thorough research and seek professional advice to make an informed decision. NDIS property investment can be rewarding, but a well-planned approach is key.

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