Challenges for SDA Property Investors

Finding financial resources for initial costs

Investing in SDA properties can demand a higher upfront investment compared to conventional real estate ventures. This may include the initial deposit, additional expenses such as stamp duty, and participant acquisition fees. Traditionally, lenders valued the properties as typical homes, meaning investors needed to be financially equipped to deal with potential valuation shortfalls and maintain a financial cushion to offset any disparities. 

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Thankfully, there are specialist valuers who can now accurately value an SDA property, taking into account the value of the additional disability-specific features. At Apollo Investment, we have NDIS finance specialists who can help property investors unlock capital and equity in existing assets, so any deposit and initial outlay can be seamlessly built into the finance solution to remove potential cash flow burdens.  

Property investors need to understand any potential temporary income fluctuations to ensure the sustained profitability of their investment. Working with our finance experts helps ensure property investors have the financial capability to manage mortgage payments and any associated ongoing costs. 

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A great example of accurate valuation and upfront cash flow is a South Australian property we assisted an investor with. The valuation came back at $135,050 more than our client paid! The cherry on top was the $50,000 cash-back rebate we also passed on to them. This is something builders typically pay during construction that property marketing companies usually pocket. We disclose and pass on any rebates straight to our clients. In total, the client essentially received $185,050 in value before construction had even begun!

Limited capital growth

With NDIS homes being purpose-built to accommodate people with disability, the potential for capital growth is something many investors wonder about. While it’s a valid concern, there are many factors in play that help the capital growth potential of NDIS properties. 

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The quality of the build has an impact on capital growth, which is why at Apollo Investment, we avoid cookie-cutter housing, and work with specialist SDA architects to build top-quality homes. Demand is another factor that drives capital growth, and according to the NDIS SDA demand data, there are still many people with disability seeking appropriate housing. 

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Our acquisitions team helps to offset capital growth risks by securing land ahead of location booms. By identifying future high-growth locations, we’ve assisted property investors in achieving the capital growth they’re searching for. 

Finding tenants

An investment property without any tenants is a scary prospect for many investors! By working with the right experts, we ensure that the SDA properties comply with all standards and have accessibility features above and beyond the minimum guidelines. The SDA providers we work with generally have suitable tenants lined up before the home is even built. 

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By crafting superior residences tailored to the specific needs of individuals with disability and strategically occasions placing them in optimal locations, it’s possible to significantly diminish vacancy risks.

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Apollo Investment helps remove challenges

SDA investment, challenges abound, but so do opportunities. At Apollo Investment, we specialise in guiding investors through these complexities. 

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our commitment to quality extends beyond financial solutions. We prioritise superior construction standards and strategic property positioning to enhance capital growth opportunities and mitigate vacancy risks. By partnering with Apollo Investment, investors gain access to a comprehensive suite of services designed to maximise the profitability and sustainability of their SDA investments.

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If you're navigating SDA investment, reach out to Apollo Investment for expert guidance and support.

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