SDA is an acronym in the National Disability Insurance Scheme (NDIS). It stands for specialist disability accommodation. Only 6% of NDIS participants meet the strict eligibility requirements for SDA due to not enough homes being available. The available SDA homes are reserved for those who have the highest levels of functional impairment or the highest support needs.
Without enough SDA accommodation, many younger Australians will have no other option but to be prematurely put into aged care accommodation.
What is being done to increase SDA accommodation?
The federal government offers guaranteed tenant rental income amounts for SDA landlords. Currently, this amount is up to $381.15 per week for single SDA tenants and $246.98 each for couples. This reasonable rent contribution can see SDA landlords receive above-average rental income returns on their SDA properties.
SDA loans
At NDIS Loan Experts, we can help ensure the government rental income guarantee helps you get the finance you need for the SDA accommodation investment. Loans to buy an established SDA home or to build a new one can be approved with as little as a 10% deposit.
We help get the higher rental income included in the assessment of the SDA loan application when assessing your servicing capacity. This increases both the chances of an SDA loan approval and the amount you can borrow.
Types of SDA properties
There are four different types of SDA:
- Improved liveability: this includes enhanced provisions for people with sensory, intellectual and cognitive impairments.
- Fully accessible: built with enhanced physical access features for people with significant functional impairments.
- Robust: includes features that are designed to make them resilient and to reduce the risk of injury to ‘high-risk’ SDA recipients and their support staff.
- High physical support: includes enhanced physical access provisions for people with significant physical impairments who need the highest levels of support.
Case studies
Thomas was born with a significant physical disability that required his parents and other support staff to look after his daily support needs well into adulthood. By the time he reached his early thirties, both his parents had passed away. Thomas became eligible for SDA accommodation to help him continue living as independently as possible once his parents were no longer around. His only other option was to move into aged care, which is something he doesn’t plan on doing until he’s receiving the Age Pension.
Sarah was in her early forties when she became both mentally and physically disabled after a car accident. She came very close to losing her life in the accident and was on life support for more than a week. Thankfully she pulled through, but it means that she will need appropriate SDA accommodation for the rest of her life.
Without SDA properties, both Sarah and Thomas would be stuck in aged care facilities. Their quality of life would be significantly diminished.
The bottom line
SDA properties are a win/win situation for both tenants and landlords.
They help eligible NDIS recipients live as independently and as easily as possible while also making it easier for them to receive the level of care and support they need.
Investing in SDA accommodation also provides landlords with above-average, government-guaranteed returns.
If you’d like to learn more about NDIS investment properties, please contact us today.
