NDIS investors cautioned

Summer Foundation chief executive Di Winkler has warned investors about NDIS investments. She has warned that many organisations pitching the product to investors are using exaggerated and unobtainable figure to induce mum and dad investors in the NDIS product.

Yields of 15% have been claimed with guaranteed occupancy and government backing. This is all untrue.

35 different organisations pitching this style of investment were found to be misleading. Many of the finalised projects are sitting vacant and are difficult to resell due to the layout.

The high capital cost of this style of product means if the yield is not high the returns can be poor. Even worse if unrented.

“This type of retail prospectus is incredibly irresponsible. The NDIA, in its 2016 market statement, made it very clear that you should be targeting a return of around 8 per cent to 11 per cent. It’s not underwritten by the government. It’s not guaranteed, and certainly the returns are not in the 15 per cent to 20 per cent range advertised.”