DDP Property Founder, Zaki Ameer, Discusses Pros and Cons of Investing in NDIS Properties
Zaki Ameer, DDP Property Founder ● Photo Credit: DDP Property
SYDNEY, August 9, 2024 (VSNewsNetwork.com) - Investing in properties under the National Disability Insurance Scheme (NDIS) has become an area of interest for those seeking to combine real estate investment with social impact in Australia. Zaki Ameer, founder of DDP Property and a property investment expert, has outlined the key advantages and challenges associated with NDIS property investments.
According to Ameer, one of the primary benefits of investing in NDIS properties is the potential for attractive rental yields. "The rental income from NDIS properties can be quite compelling, often exceeding the returns from standard rental properties," Ameer stated. The Australian government provides funding to ensure these properties meet the specific needs of individuals with disabilities, which can result in higher returns for investors.
Another advantage is the potential for long-term tenancy. Due to the specialized nature of NDIS properties, tenants typically seek stable, long-term accommodation. "NDIS tenants usually seek stability and long-term accommodation, which can lead to more consistent rental income and fewer vacancies," Ameer noted. This stability can be beneficial for investors looking for steady cash flow.
Beyond financial returns, Ameer highlighted the social impact of investing in NDIS properties. By providing quality housing for individuals with disabilities, investors contribute positively to the community. "It's not just about financial returns; it's about making a real difference in people's lives," Ameer emphasized.
Government support also adds a layer of security to these investments. Ameer explained, "Government backing adds a degree of certainty rare in other property investments." This support reduces financial risks for investors and ensures the properties meet the necessary standards.
However, Ameer also pointed out significant challenges. One major drawback is the high cost associated with purchasing or converting a property to meet NDIS standards. "The upfront investment can be substantial, which may deter some investors," Ameer said, noting the specialized modifications required for accessibility.
Compliance with strict regulations is another challenge. "The regulatory environment is complex, and maintaining compliance requires ongoing effort and expense," Ameer warned. Investors must remain updated on changes in legislation to avoid penalties and ensure their properties remain suitable for NDIS tenants.
The niche market for NDIS properties can also pose difficulties in finding suitable tenants. "The pool of potential tenants is smaller, which could lead to longer vacancy periods if the property isn’t in high demand," Ameer cautioned, highlighting the potential impact on cash flow and returns.
Finally, managing NDIS properties can be more demanding than standard rentals. "These properties require specialized management to cater to the unique needs of tenants, which can add to the operational costs," Ameer explained.
Ameer advises investors to carefully weigh the pros and cons before deciding to invest in NDIS properties. "Investors should consider whether they are equipped to handle the demands of NDIS property investment," he concluded.
For more information, visit www.ddpproperty.com.au.
Source: DDP Property via Newswire
