Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

New property opportunity flagged for investors

By Reporter · November 22 2018
Reading:
egg
egg
egg

Invest

New property opportunity flagged for investors

By Reporter
November 22 2018
Reading:
egg
egg
egg
new property opportunity flagged investors

New property opportunity flagged for investors

author image
By Reporter · November 22 2018
Reading:
egg
egg
egg
new property opportunity flagged investors

A government initiative designed to assist people with disabilities into high-quality housing has been flagged as an opportunity for property investors.

According to managing director of Horizon Property Alliance Michael Knights, the housing program established by the federal government through the National Disability Insurance Scheme (NDIS) could present Australian property investors with untapped opportunities.

Mr Knights said that the program, which covers the cost of accommodation and ongoing care for participants to enter specialised housing, would provide mum and dad property investors and astute business owners with an opportunity to help facilitate the process by aligning themselves with an accredited care provider who helps them establish specialist housing for those with severe disabilities that need 24-hour care.

“We are aware of a variety of models available to investors who want to be part of the scheme, but all revolve around establishing a bespoke home for three to five participants,” the MD said

“The investor owner then grants the care provider permission to operate in the home for a predetermined rental amount and, in many cases, a share of the care business’ profits.”

Advertisement
Advertisement

Mr Knights added that as well as supporting those with severe disabilities, there may also be potential for investors to generate “solid returns”.

“It’s an incredible, government-funded initiative to both help those with disabilities and incentivise private investors through excellent returns,” Mr Knights said. “Frankly, I’ve never seen anything like it in all my years in the industry.”

Mr Knights cited a 2017 Productivity Commission report that showed the NDIS would support around 475,000 people at a cost of $22 billion in its first year.

“It has the potential to create hundreds of thousands of jobs nationally,” the MD continued.

Further, Mr Knights said that the government-funded payments would give investors security of income.

“That said, there are always risks when investing. In this instance, you need to ensure you’re aligned with a high-quality care provider,” Mr Knights said.

“Also, while vacancies are a normal risk for property investors, the government will provide a three-month rental guarantee when rooms become vacant. Given the waiting list that currently exists, however, we don’t envisage vacancies being a major downside.

“The only other risk seems to be future changes in government policy, but we believe the program’s success will become apparent in the short term.”

New property opportunity flagged for investors
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.