A Specialist Disability Accommodation (SDA) dwelling is a specially designed home for people with extreme disabilities or who require high support needs. The National Disability Insurance Scheme (NDIS) is a scheme by the Australian government which helps people with disabilities to achieve their goals in life by providing various funds for care, rehabilitation, transport, housing and more. SDA is a part of the NDIS scheme, which provides funding for a home for eligible NDIS participants. The main aim of SDA housing is to bring more independence to People with Disability (PWD) and to improve their quality of living.
SDA property investment gives high returns and is an ethical investment.
Why invest in SDA property?
SDA funding is likely to support around 6% of NDIS participants. According to the government-funded study conducted by The Summer Foundation, the existing supply of SDA needs to grow by at least 60% to house the more than 28,000 people the NDIS expects to fund. (source: Summer Foundation)
Thus, there is a high demand for SDA property, investing in it in the right locations and using the right NDIS registered SDA builders, will bring more profits than standard real estate properties. The benefits of investing in SDA housing are the following :
1. High returns :
Tenants will generally stay in their SDA home for a long period of time, which provides stable income to the investor with rental yields between 9% and 12% to be expected depending upon the house design, the participant’s funding level and the location. The demand for SDA far outweighs current supply.
2. Less risk:
The Australian government pledged that the SDA scheme will continue for a term of 20 years, providing a space for investors to be confident when investing in SDA homes. Investors receive a continuous stream of income from three separate parts, being:
- Commonwealth Rent Assistance
- SDA payment
- 25% of the NDIS participant’s pension support
Choose our recommended NDIS SDA builders for well-designed homes that meet the guidelines provided by NDIS. We also connect investors with an SDA provider who looks after tenancy and maintains the property so that investors can be confident and also receive a regular income as soon as possible after the home is completed.
3. Ethical Investment:
Investing in SDA homes not only provides a high return, but it is also an ethical investment. By investing in an SDA home, you are helping to improve the standard of living for people with disability who would otherwise be living in unsuitable accommodation, whether they are in a nursing home, hospital, legacy housing and group homes that are not fit-for-purpose or living at home with aging parents who will not be able to continue caring for their adult children into the future.
How do investors fit into the NDIS plans?
SDA housing is built for eligible NDIS participants and is funded by the NDIS scheme. Investing in SDA provides a high return on investment (ROI) by way of SDA funding paid to the property owner against funded tenants residing in the property and also helps people with disability who need suitable housing. Investors should plan and build based on the supply and demand determined by the NDIS, housing providers and other related organisations.
Individual NDIS and SDA plans :
SDA funds are included in eligible participants NDIS plans. Participants need a support coordinator and allied health professionals to put together this application. They need to provide evidence that SDA is reasonable and necessary and is value for money for the NDIS, allowing the participant greater independence and freedom and enabling their carers to better look after them in their own home.
NDIS PROPERTY AUSTRALIA provides SDA property solutions, helping build homes for PWD using SDA builders, who design the homes based on both NDIS guidelines and participants’ needs. NPA also works with service providers and NDIS participants to meet their requirements.
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