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SDA/NDIS PROPERTY

Specialist Disability Accommodation

WHat is SDA/ndis property?

The NDIS was formed to consolidate multiple State, Territory & Federal disability Government groups with the aim to provide a better solution to a very challenging issue in Australia – treating Disabled people with dignity and securing the funding required for participants.
In May 2016 the Joint Standing committee on the NDIS released a report with recommendations regarding building accessible and affordable housing for those with disability. The SDA was established to support those recommendations for those eligible for disability housing.
We are extremely lucky that we live in a country where the well-being and care of those with disability is provided the level of funding and support we see today, while the NDIS may have its bureaucratic red tape, once navigated and approved the funding supplies some of the best disability support offered in the world. According to the March 2020 Specialist Disability Accommodation “Supply in Australia” report, since 2016 nearly 3,000 properties have been built or were under construction at the time of the report.
In 2018 there were 6,000+ disabled participants in Aged Care facilities and we’ve only managed to build 3,000 properties in a 4-year window.
The Parliamentary website stated demand for housing was over 50,000 people, and this number is expected to continue to grow year on year, so where do all these people live?
One group that has been almost forgotten is elderly parents with disabled children still living at home, in 2012 there were some 78,000 ageing parents that were concerned with what would happen once they passed away or could no longer support their children.
The SDA provides funding for housing based on a set payment/fee structure, this incorporates the type of property, the level of disability catered for and the location.
If we doubled the current rate of production from 750 properties per year to 1,500 per year, we would still require decades from today to reach the current target, not to mention the additional participants being added over that time period. In July of 2020 the SDA increased fees payable to investors in the disability housing space, this was during a global pandemic and in the midst of a recession, yet the Government saw fit to increase the rental paid to investors. In 2021 the Government increased funding by $13.2bn
UPDATE: July 2023 saw a massive increase in the rents paid for Houses under the SDA taking the average SDA house rentals from $65,000 to in excess of $130,000
The Government has done their cost-benefit-analysis report and the savings under this scheme make it a very attractive way of saving money during the recession, not to mention the funding for the NDIS is legislated and has bi-partisan support from both sides of politics as it wins votes.
With 1.4 million people in Australia claiming a disability pension there is a very real possibility that NDIS is here to stay, and one of the few cost savings is the Specialist Disability Accommodation department. It took from 2007 until 2020 to launch “full-scheme” it would take almost as long to dismantle the scheme. So while you may think, this sounds too good to be true, I would ask you to remember that this is not about you, it is not about paying you huge rentals and the Government wanting to reward you, they have a very specific need and they understand that the job needs to be done properly, so they have to pay a fair and reasonable price to get investors onboard, unfortunately it simply is not happening quickly enough.

NDIS Statistics (1st Quarter 2023)

432,649

People with Disability being supported by the NDIS

21,283

Joined the Scheme in the 4th Quarter of 2020

$13.2B

The amount the Budget was increased

58,000+

Participants projected to be qualified for SDA Assistance

why invest in sda PROPERTY?

Socially resposible, Ethical investing
One of the more popular property types we speak about is SDA Property, or Specialised Disability Accommodation.
The NDIS offers substantial rental returns (yields) to investors who purpose build Specialist Disability Accommodation (SDA) property.
To access the great returns the property needs to meet strict criteria.
Brand New property doesn't need to be restricted to New land estates, you could possibly qualify for a knockdown / rebuild disability property on an existing site.
Our speciality is to identify properties in established locations that are underperforming assets, let's look at refreshing the improvement to the site, resetting depreciation and tax benefits, while simultaneously supercharging your yields!
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UNDERSTANDING the market

SECURING YOUR LONG TERM SUCCESS
STRUCTURAL ADVICE
This is a high yielding investment category, and as such carries a higher tax obligation if structured as a personal purchase. It is advised to explore Trust and Company ownership with your Accountant. Debt too needs to be considered in the context of securing the best long-term solution that maximises outcomes for the investor.
SITE IDENTIFICATION
Verification of demand is paramount to the review process. Without SDA and SIL support any project will likely fail. Our in-depth site analysis confirms the suitability of a properties location against fire risk, flood etc. but more than that, we are looking for the investment return and cost/benefit ratio.
FUTURE PROOFING
Working directly with SIL Providers gathering intel on best-in-category designs, speaking with industry insiders we started promoting and including Sprinklers in all designs back in 2021 before anyone else. When the design of your investment property exceeds the competitions standards, you lock in your long term advantage.

WATCH OUR NDIS EXPLAINER VIDEO

For a more detailed explanation on the SDA/NDIS please view the video on the right hand side and subscribe for future videos.
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