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  • Writer's pictureEsho Capital

Exploring NDIS Loans: An Overview Guide for Property Investment

Updated: Apr 9

In the evolving landscape of Australian real estate, NDIS property loans have emerged as a pivotal financial tool, empowering investors to contribute to a noble cause while also seizing a unique investment opportunity. These specialised loans are designed to facilitate the acquisition or construction of Specialist Disability Accommodation (SDA), aligning with the National Disability Insurance Scheme's goals.

Understanding NDIS Properties

NDIS properties are designed to offer safe, comfortable, and accessible living spaces for Australians with disabilities. These properties must meet stringent NDIS compliance standards, which cover a wide range of criteria from structural design to accessibility features, ensuring that the residences are perfectly tailored to the needs of their occupants.

New Investment Category

Investing in the construction of NDIS properties is not just a socially responsible choice, but also potentially financially prudent one (subject to your own advice and appropriateness tests). The demand for high-quality, compliant housing is on the rise, driven by the growing awareness and support for the disabled community. Furthermore, the Australian government's backing of the NDIS program ensures a level of stability and security for investors in this sector.

What Are NDIS Property Loans?

NDIS loans cater specifically to properties that adhere to the stringent compliance standards set by the NDIS, ensuring that homes are accessible, comfortable, and safe for individuals with disabilities. These loans are not just a financial product; they represent a commitment to social responsibility and inclusion.

Choosing the right NDIS loan lenders

If you're here, you have probably realised that banks and lenders don't treat NDIS property investment loans like ordinary owner occupied or investment loans.

Esho Capital works with a small group of specialist lenders which specialise in NDIS property investment loans, catering the offering to better understand and serve the property investors who purchase these homes and rent them out to SDA providers. Not all lenders have the same policies and procedures when assessing these loans. A specialist approach might be prudent.

These loan products are tailored to meet the unique requirements of NDIS property investments, offering features such as maximum loan amounts up to $1.25 million for construction and up to $1.5 million for established properties, the option for fixed rates, and the availability of offset accounts post-construction. Eligibility criteria for these loans typically include Australian residency status, documented income evidence, clean credit history, and a minimum employment period.

Additionally, these loans come with specific fees and charges, including annual fees, valuation fees, and construction-related fees, highlighting the need for potential borrowers to carefully consider the financial implications of such loans.

Remember, that this guide is only suitable for those who have already pre-qualified themselves as suitable for an NDIS property strategy. This is an advanced strategy with many risks that go alongside the opportunity. New investors are perhaps more likely to stick with traditional owner occupied property choices or basic investment options in established markets and products. Take caution when exploring all opportunities.


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