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institutions in SDA Housing Sector

More Institutions in SDA Housing Sector Signal Market Growth

Out of the many market indicators in specialist disability accommodation (SDA), the recent rise in institutions being established within the SDA sector indicates positive market growth in SDA properties. For investors seeking an ethical investment property that offers a uniquely solidified return profile and an unparalleled social outcome, the rise of institutions in the sector could be the green light they need to get their foot in the SDA door.

What does the rise in institutional involvement mean for SDA property investment?

We recently wrote about investors requiring greater market stewardship by the National Disability Insurance Scheme (NDIS). Now there has been an evolution in the SDA market, spurred by greater take-up by institutions in the sector. This should be cause for a major boost in investor confidence, as institutions bring with them large volumes of reliable, well-governed economic resources to help solidify the future of SDA housing.

More economic resources from institutions lessen the burden on the Australian government. This enables developers of SDA dwellings as well as SDA providers and property operators the opportunity to focus on building SDA homes by partnering with institutions without SDA funding concerns. In turn, the better output of SDA compliant NDIS properties promotes a viable investment option for those looking to make an SDA dwelling their next investment.

How the NDIS can back your financial future

No other private investment opportunity on the open market exists which is as high yielding and highly benevolent as investing in an NDIS SDA place.

An NDIS property is not like a standard investment property. The scheme aims to provide suitable housing for those within the community who live with disability and to seriously reduce the number of people winding up in aged care facilities simply because the standard residential housing market fails to support their living needs. SDA becomes more than just ‘suitable housing’ and instead, often gives the gift of a forever home to a disabled person.

As an investor, NDIS homes represent a great investment opportunity — not only due to the social outcomes, but also because you have access to up to twenty years of rental income, backed by the Federal Government.

SDA payments are made by the NDIS to an SDA provider to help cover the cost of a property that houses a person with very high support needs or extreme functional impairment. In addition, you also have the ability to receive a reasonable rent contribution from the NDIS participant (your tenant).

What you need to know before investing in Specialist Disability Accommodation

Given the uniqueness of an SDA home, there is some added complexity compared to purchasing a residential property.

  • Homes need to be SDA compliant. This means satisfying strict criteria on how the home is built and where they are located (e.g. proximity to public transport).
  • If you’re buying a land package and intending to build, you’ll need to partner with an approved SDA builder right from the get-go.
  • NDIS approved tenants (SDA participants) will fall into one of the four categories that suitable SDA properties are provided within: Improved Livability, High Physical Support, Fully Accessible and Robust.
  • All dwellings have to be enrolled with the National Disability Insurance Agency (NDIA). An SDA provider can help with this.

There are thousands of NDIS participants looking for appropriate housing, pushing SDA homes into high demand, however not every home within this sector is a viable option.

Contact NDIS loan experts to find the right fit for you.

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