There’s a growing market for specialist disability accommodation (SDA) in Australia. It has the potential to come with both financial and non-financial benefits for investors and tenants.
Read on to find out everything you need to know about becoming involved in the SDA market, including answers to FAQs.
What is specialist disability accommodation (SDA)?
SDA is residential accommodation for National Disability Insurance Scheme (NDIS) participants who have the highest care needs. It is built to specific design standards to cater for the needs of eligible recipients. It is a growing sector with high demand and a shortage of available SDA across many parts of Australia. The long-term return on investment outlook is strong for SDA properties in the right locations.
Is there government support for SDA?
Yes, the government provides SDA payments which can boost rental returns for SDA property investors once tenants are secured. The government views SDA as a necessary alternative to the accommodation provided by government or community organisations that often have extensive waiting lists.
The SDA payments are guaranteed for 20 years.
How do SDA investment returns compare to traditional investment properties?
The government guarantee and support for SDA rent means that SDA rental income returns tend to be higher than the rental returns on comparable investment properties in the same area.
Are all SDA properties the same design?
No, there are four categories of SDA design:
- Improved Liveability: this category is designed to cater for eligible recipients who have cognitive, intellectual and sensory disabilities.
- Robust: this SDA is designed to be as robust as possible to withstand any damage.
- Fully Accessible: designed for tenants who have significant functional disabilities.
- High Physical Support: the highest level of SDA for tenants requiring the highest levels of physical support.
You can find out more about the cost of building an SDA property here.
How does SDA benefit recipients?
SDA allows eligible recipients to have greater choice over where they live. It can provide them with long-term security in accommodation that’s designed for their specific needs as well as those of the people who support them. It provides them with a degree of independence.
Prior to the introduction of the NDIS and SDA, many Australians who have the highest care needs were forced prematurely into aged care or nursing home accommodation.
How can you invest in SDA?
If you’re interested in investing in SDA, you should talk to an expert who specialises in this type of investment. Our team at Apollo Investment can help you every step of the way, including:
- finding land in the best location to maximise your return on investment,
- arranging an SDA-approved design and build of your SDA investment property, and
- sourcing your tenants.
We can also help you with the ongoing management of your investment.
If you have any questions or would like to find out more about investing in SDA, please get in touch with us today.