Article by Shantelle Santos
What Is Specialist Disability Accommodation?
Specialist Disability Accommodation (SDA) is specialty accommodation for people with disabilities who require specialist housing solutions, not readily available. These properties are speciality built and made available to participants of the National Disability Insurance Scheme (NDIS).
The NDIS is a federal scheme brought into effect in 2013. It allows people with a disability to exercise choice and control over aspects of their lives that able-bodied people take for granted. Having a custom home goes a long way in allowing people in this demographic to gain independence and improve the quality of their day-to-day lives.
The National Disability Insurance Scheme (NDIS) is chronically under-supplied with quality, custom-built homes catering to its participants. According to one study undertaken in March 2018, 28,000 eligible NDIS participants were living in inappropriate accommodation for their needs. The report cited that in order to house those people alone existing supply would need to increase by 60%. Source. Investing in these types of properties not only caters to a growing requirement in the community but is potentially one of the best investments you could make in terms of growing your capital.
Here are 3 reasons why investing in an SDA property could be the right investment for you:
1. High Rental Yield
According to one source a property valued at $650,000, designed to meet criteria set by the scheme, which accommodates four people (two SDA residents with higher physical demands in addition to their carers) could warrant a gross rental yield of as high as 16-18% depending on location.
To qualify for the scheme, homes must meet the criteria outlined by the NDIS. To ensure that all criteria is met during the planning & building phase, investors would ideally use a Registered NDIS Provider who specialises in building these types of properties. These providers are familiar with the Livable Housing Australia (LHA) minimum standards of accessible design adopted by the NDIS and the housing industry. For information on SDA eligibility requirements for homes, visit the Government’s website.
2. Less Risk For Investors
The Australian government has pledged $700 million dollars per year for the next 20 years to help provide more speciality dwellings to help alleviate the current shortage now and into the future. The funding is distributed to investors in the form of different rebates, such as savings on Stamp Duty, and other on-going SDA funding incentives. Funding amounts are calculated to correspond to the published price limits for dwellings, which the NDIA sets depending on the dwelling’s category, building type and location. This information can be found on the official NDIS website.
With the backing of this government funding, investing in SDA can help ease or even alleviate worries about finances investors may face when venturing into property investment.
3. Good For The Soul
If the proper due diligence is taken (as it should with any investment), not only is it a great way to increase your financial gain, it’s good motivation to ensure that disadvantaged individuals are being taken care of. Interested in ‘Impact investing’? SDA property is certainly an option to explore.
Read more about investing in SDA property on the Summer Foundation website.
If you have any questions or would like to learn more about SDA property investment opportunities, please don’t hesitate to get in touch with one of our property consultants to discuss your options.