Fractional investing offers chance to get on property ladder
Fractional investing in an NDIS property provides a way to get a foot in the door and start investing in property.
Do you want to get your foot in the door and start investing in property? Then fractional investing in an NDIS property may be for you.
This is an exciting opportunity for those who want to own a share of a property – you don’t need a lot of capital to get started and could potentially receive high yield returns without the high upfront costs, all while providing housing for Australians living with a disability.
Let’s talk about fractional investing and its benefits, the benefits of investing in a National Disability Insurance Scheme (NDIS) property, and how you can start building your wealth.
What is fractional investing?
Fractional investing is buying a bit of an asset with other like-minded investors instead of buying a whole asset. It’s a bit like sharing a pizza.
Another term for fractional investing is syndication. For example, the cost of a house may be hundreds of thousands of dollars or more. A commercial property like a factory, an office, a solar farm, or an agricultural property could be millions of dollars and well beyond most people’s ability to purchase outright.
Fractional investing gives people the choice to buy what they want and invest as much as they want so they can participate in the market.
Benefits of fractional investing in an NDIS property
As an investor, you can take advantage of a low barrier to entry.
Fractional investing could be an affordable alternative compared to traditional property investments. You’ll be saving costs by owning a share of the property without the hassle of high upfront expenses.
Investors know how important it is to spread investments to preserve capital and reduce potential losses. By building a diversified portfolio, you can protect your assets and mitigate the risks.
Since you don’t need as much money to invest, it’s easier to diversify your investments across different asset classes.
What is an NDIS property investment?
The National Disability Insurance Scheme (NDIS) is an initiative that was first rolled out in 2016 by the federal government in effort to aid Australians living with a disability.
People with extreme functional impairment require very high support needs to live in the community and receive the support they need
The Government spends up to $950,000 a year in housing a single high physical support person. With this scheme in place, the Government could reduce its costs to $65,000 a year. This initiative was created to incentivise the private sector to build NDIS compliant homes, which will include reinforced framing, handles, and ramps.
The goal is to have no people under the age of 65 living in residential aged care by 2022. The NDIS is projected to continue to grow to reach about 500,000 participants by 2024-5 and is forecast to cost 1.2 per cent of GDP, which the Commonwealth has committed to funding.
As an investor, your contributions will help fund housing for Australians living with a disability, thanks to the NDIS housing scheme.
Benefits of fractional investing in an NDIS property.
Currently, there is a strong demand in future developments for disability housing for Australians. Due to the undersupply of NDIS housing, this is a great opportunity for you to get your foot in the door and diversify your portfolio.
A huge demand and undersupply of NDIS housing also means the vacancy risk is very low. Since tenants are generally long-term and require housing to meet their needs, they will generally stay for a long period of time.
The government has also sought to mitigate vacancy risk by providing rental guarantees. If NDIS properties are left without a tenant, the government will cover the rent for up to 60 or 90 days (depending on the number of rooms). This is an additional benefit that regular property investments do not offer.
Another benefit of fractional investing in an NDIS property, is that you could potentially earn a high-yield return of up to 16 per cent annually. Due to the greater costs involved in building these homes, investors have the potential to receive higher income returns.
Since December 2019, the NDIS has reduced the number of people under 65 living in aged care by 13 per cent, and this number is expected to grow in the coming years. The Federal Government have also appointed a taskforce to address younger people living in aged care.
As an investor, you can help Australian families feel confident that their loved one has the best quality living requirements and the support they need to live comfortably.
How to invest in an NDIS property?
So how do investors get started in this amazing investment opportunity? ASR Wealth Advisors have worked with DomaCom to create an exciting product that will maximise investors’ property investments through its unique designs and projects.
DomaCom is Australia’s leading fractional property trust platform. With nine completed NDIS property projects in Western Australia and more underway, this is an opportunity you don’t want to miss.
Get in touch with ASR Wealth Advisors today, where their expert team will break down everything you need to know to get started and diversify your income portfolio for years to come.
Be part of an ethical investing opportunity
If you want to invest in property, generate high-yields, and still make a positive impact on communities, then fractional investing in an NDIS property may be for you.