Step by Step Guide to NDIS SDA Investment

I’ve had a number of people lately ask me what they need to do to secure an NDIS SDA property so I thought I’d send you this in case it’s helpful to you too.

I recorded a 3-minute video back in November explaining how to unlock equity in your home for the deposit for the investment property.  If you missed it, or want a review you can find it HERE. I guide my clients through every step of the way. 

Here’s the high-level steps…

1. Arrange a brief Strategy Meeting with me to discuss your desired outcomes and ensure we’re on the right track based on your current situation.  You can arrange a quick meeting HERE

2. Watch the FAQ’s video HERE - they say “repetition is the mother of learning” so even if you know a lot about SDA this is worth watching.

3. If you decide to proceed, secure your deposit funds (15% minimum of the purchase price) and your finance (where applicable) with an experienced SDA mortgage broker.  I can recommend a few so reach out if you need an introduction.  I don’t receive any benefits (except great service) for these recommendations.

4. Decide on how the property ownership.  Will it be held personally, in a Family Trust or in a Self-Managed Super Fund (SMSF)?  I can assist with providing some information to help you decide, and can recommend specialist advisors where necessary.  Also see HERE if you are considering SMSF.

5. Set a budget.  For NDIS properties the range is from $860k - $1.2m +If required, secure finance pre-approvals (subject to valuation and property selection)Select a suitable property.  I’ll help you through this process, including a personal Cash Flow Analysis.

6. If required, secure finance pre-approvals (subject to valuation and property selection)

7. Select a suitable property.  I’ll help you through this process, including a personal Cash Flow Analysis. 

8. Submit a Sales Advice to secure the property.  At times this will require a deposit (between $1,000 - $5,000) and possibly an upfront compliance fee (normally $6,600).  This is property specific and will be outlined when the property is selected in Step 7.

9. Chose a legal / property conveyancer who will act on your behalf.  I can recommend several quality firms.

10. Sign the Contracts.  Contracts are reviewed by your legal / property conveyancer.  Once satisfied, sign land and build contracts within 7 days of issue.

11. Pay deposits.  Normally this is 10% of the land value and 5% of the building contract.

12. Settle on the land – the balance of the land contract is payable (normally 90%) and payable around 4-6 weeks from contract signing/exchange. Sometimes there is a delay in the land settlement if the land is yet to be registered. 

13. Building commences.  The build times vary between 6 and 12 months depending on location.  Pay progress payment claims at various stages of the build

14. Start looking for potential tenants.  During the last phases of the building, contacts will be made with various SDA Providers to help secure NDIS Tenants as quick as possible after the building is completed. 

15. Select an SDA provider based on tenant options, select and secure tenant(s).

16. Furnish the property.  Depending on the tenants needs there may be a requirement to provide some furnishings, including fridge, washing machine, coffee table etc.  This is normally around $10,000.

17. Enjoy your investment and feel good about providing appropriate accommodation for those of our community that are disabled as you received your monthly income.   

Yep, there's a bit to it all, but it's worth it for sure and you are not alone through the process!

So if you are you looking to make an investment that not only offers attractive financial returns but also makes a significant social impact then let’s get started – take Step 1 today and click HERE to make an appointment.