How it will be valued
Will the valuation match the price?
Get clarity before you commit. Where a valuation comes in on ordinary residential comparables rather than the specialist income, the shortfall falls to you in cash.
SPECIALIST PROPERTY
Finance for NDIS and co-living property
Higher yields come with higher complexity. Lenders price both, and the sector carries risks worth understanding before you commit.
IN SHORT
Specialist accommodation is financed as a specialist asset
Specialist Disability Accommodation and co-living properties are marketed on yields well above standard residential investment. Those yields depend on the property being tenanted under particular arrangements — and lenders assess them with that dependency firmly in mind.
Most lenders will not value these properties on the specialist income. They value them as ordinary residential property in their location, which can be considerably less than the purchase price where a premium has been paid for the specialist fit-out.
That valuation gap is the single most important thing to understand before signing a contract. It determines how much deposit you actually need, and it is where buyers in this sector most often come unstuck.
WHY IT HELPS
What to establish first
The tenancy arrangements
Who is actually paying the rent?
Income depends on registered providers, participant demand and continuing scheme settings. The strength and term of those arrangements matter to a lender.
Which lenders participate
Will your bank fund it?
Many mainstream lenders restrict or decline specialist accommodation. Knowing who lends in the sector before you sign avoids a failed approval.
HOW IT WORKS
How lenders approach it
This is a sector where the marketing and the credit assessment can look like they are describing different assets. A lender's view is generally the more conservative of the two, and it is the one that decides what you can borrow.
- Valuation is commonly on standard residential comparables, not on projected specialist yield
- Maximum loan-to-value ratios are often lower than for standard investment property
- Specialist rental income may be discounted heavily or excluded from serviceability
- Your own income usually needs to support the loan largely on its own
- Exit considerations matter — the resale market for these properties is narrower
IS IT RIGHT FOR YOU
Weighing it up honestly
This tends to suit you if
- Your own income supports the loan — without relying on the specialist yield being achieved.
- You have a substantial deposit — enough to absorb a conservative valuation.
- The property works as ordinary housing — which protects you if the specialist use ends.
- You have independent advice — not only from the party selling you the property.
Worth weighing up
- Valuation shortfalls are common — and the gap has to be funded from your own cash.
- Income depends on scheme settings — which are set by policy and can change.
- Vacancy risk is concentrated — the pool of suitable tenants is much smaller.
- Resale can be difficult — a narrower buyer market affects both price and timing.
Projected yields in this sector are forecasts, not guarantees, and they depend on continuing government scheme settings and on the property being tenanted. Seek independent advice from someone who is not selling you the property.
How working with us actually goes
Step 1
We start with a conversation, not an application
Step 2
We work out what you can borrow and what it costs
Step 3
We prepare the application and deal with the lender
Step 4
We stay across the loan long after settlement
COMMON QUESTIONS
Questions we get asked about this
Why will lenders not value the property on its NDIS income?
Because that income depends on the property continuing to be used for a specialist purpose, under arrangements that can change. A valuer assessing security has to consider what the property is worth in the open market.
In most cases that means comparable residential sales in the area, which may be well below a price that included a specialist premium.
How much deposit do I need?
Generally more than a standard investment purchase, both because maximum LVRs are lower and because you may need to cover a gap between the valuation and the contract price.
It is worth getting an indication of both before signing anything.
Which lenders will finance NDIS property?
A limited group. Many mainstream lenders restrict or decline specialist disability accommodation, and those that participate apply their own criteria on property type, location and tenancy arrangements.
Establishing who will lend, and on what terms, should happen before you commit to a purchase.
Is the rental income guaranteed?
No. Payments depend on the property being tenanted by eligible participants and on the scheme's funding settings continuing as they are.
Projections provided by vendors or marketers are forecasts. Treat them as such, and stress-test what happens if the property sits vacant.
What happens if I need to sell?
The buyer pool for specialist accommodation is narrower than for ordinary housing, which can affect both the price achieved and how long it takes.
A property that also functions well as conventional housing gives you a materially better exit.
RELATED
Where people usually go next
Important information
We provide credit assistance. We do not provide advice on whether a particular property or investment is a suitable investment for you, and we are not connected with any vendor or marketer of specialist accommodation. Independent legal and financial advice is strongly recommended.
The information on this page is general in nature. It has been prepared without taking your objectives, financial situation or needs into account, so it is not personal advice and you should consider whether it is appropriate for you before acting on it.
Any rates, figures or examples shown are indicative only. Lending is subject to approval, and lender eligibility criteria, terms, conditions, fees and charges apply. Talk to us about what your own circumstances allow.