Let’s be honest about where the market sits in 2026. Interest rates are up, inflation is still biting, building costs remain high, and NDIS changes to participant allocation and build timelines have made the path longer. Deposits are bigger and harder to save. If you have been watching purpose built property and wondering whether the window has closed, you are asking the right question.
Here is the straight answer: this is a tougher market, but it is a navigable one. With the right specialist guidance, the fundamentals that made NDIS, SDA, co-living, and triple-living property attractive are still intact. In fact, when rates and costs rise, yield is exactly what protects you. Let’s walk through the real picture.
The headwinds buyers are facing right now
You deserve the unvarnished version, so here it is.
Rates and inflation have pushed up holding costs across the board. Building costs are high, and specialist builds now take longer, partly because of NDIS changes affecting participant allocation and construction timelines. On top of that, deposits have grown.
The deposit reality is significant. To qualify for a house-and-dwelling on roughly a $750,000 property, you typically need at least $200,000, and closer to $250,000 to be comfortable. That is real money, and it is more than many investors expected to commit even a year or two ago.
None of this makes purpose built property a bad idea. It makes preparation and structure more important than ever.
Why purpose built property still stacks up
Now the part that matters most. Despite the headwinds, the core case for purpose built property is as strong as ever, and it comes down to one word: yield.
Traditional investments yield average returns. Our purpose built properties are designed to target significantly higher rental yields depending on property type: NDIS around 10% to 15%, and co-living or triple-living around 8% to 10%, well above the roughly 3% to 5% you would expect from a standard property. That gap is not a nice-to-have. When rates and costs climb, higher yield is what keeps your investment cash-flow resilient rather than a drain.
There is more working in your favour:
- Multiple income streams under one roof. Purpose built dwellings such as co-living and triple-living homes generate income from several tenancies, which lowers your vacancy risk. If one room turns over, the property keeps earning.
- SDA is government backed. Specialist Disability Accommodation sits on strong underlying demand and government-backed funding, which supports the income case over the long term.
- Negative gearing on new builds. New builds still attract negative gearing, and from 1 July 2027 eligible new build residential properties keep both negative gearing and the 50% CGT discount, while established dwellings bought after 12 May 2026 have their rental losses quarantined. This helps offset your holding costs while you hold the asset.
Put simply, purpose built property is built to do the one thing standard property struggles with in a high-rate environment: protect your cash flow.
Financing and valuation realities
This is where good guidance earns its keep, so go in with your eyes open.
Not many banks lend on NDIS dwellings, and the ones that do often value NDIS and co-living property differently, frequently under-valuing it. A lower valuation limits your borrowing capacity, which is why financing these properties is not the same as financing a standard house.
From 10 August 2026, SMSFs will no longer be able to enter new Limited Recourse Borrowing Arrangements (LRBAs) to buy residential property, including NDIS and SDA property, under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Existing LRBAs, and contracts exchanged before that date, are grandfathered, and commercial property is unaffected. Your SMSF can still buy residential property like NDIS or SDA outright with existing super cash, paid in full, with no loan. If you are buying through your super, structure matters more than ever, and getting it right early saves you real pain later.
The takeaway is not to be discouraged. It is to plan your financing and structure before you fall in love with a property, not after.
Smart ways to buy in this market
The buyers doing well right now are the ones being deliberate. Here are practical ways to make the numbers work.
Pool your capacity. You do not have to do this alone. Investing together, as a couple or with siblings and family, lets you combine deposits and borrowing power to reach a purpose built property that would be a stretch solo. Shared capacity is one of the most effective responses to bigger deposit requirements.
Use negative gearing to your advantage. Because new builds still attract negative gearing, factor that benefit into your holding-cost calculations from day one. It changes the real cost of ownership.
Lead with yield, not price. In a high-rate market, the property that protects you is the one targeting 10% to 15% for NDIS, or 8% to 10% for co-living and triple-living, not the cheapest entry point. Let the income case, and the multiple streams under one roof, drive the decision.
Get your structure right first. Whether you buy in your own name, jointly, or through an SMSF with existing super cash, sort the structure and financing before you commit. This is exactly where specialist guidance pays for itself.
The bottom line
Yes, 2026 is a harder market. Rates, inflation, build costs, longer timelines, new SMSF borrowing rules, and bigger deposits are all real. We will not pretend otherwise.
But harder is not the same as closed. Purpose built property still targets yields of 10% to 15% for NDIS and 8% to 10% for co-living and triple-living, against the 3% to 5% of standard property, still benefits from government-backed SDA demand, still lets you spread risk across multiple income streams, and still attracts negative gearing on new builds. With the right structure, the right financing, and pooled capacity where it makes sense, this is a market you can navigate. And in a market like this one, yield is what protects you when everything else gets more expensive.
This is general information only and not financial, tax or legal advice. Speak to a licensed adviser about your circumstances.
Ready to see the numbers for yourself? Book a free yield assessment with ACIGP and find out what a purpose built property could realistically return for your situation. Let’s make the current market work for you, not against you.