Operating in its own market, Specialist Disability Accommodation (SDA) naturally attracts a much different supply and demand relationship to that of the residential property market. Understanding how SDA supply and demand works can help to guide your investment decisions when looking to purchase an NDIS investment property.
We discuss the current supply and demand volume for SDA properties, and how property investors can make the most of the SDA market.
How much SDA housing is required in Australia?
The Summer Foundation released a report in December 2021 which estimated approximately 30,000 to be eligible for SDA funding under the NDIS. However, as at June 2022, there were only 7,086 SDA dwellings. The critical shortage of housing provides private investors with the opportunity to access an investment with significant positive social outcomes.
Using the National Disability Insurance Scheme (NDIS) demand data service
The high demand for specialist disability accommodation is clearly visible through the NDIS’s demand data website. With up to date information, investors looking to add an SDA home to their property portfolio are able to easily access the most in demand post codes and even filter by dwelling type.
More to know about NDIS property Australia
SDA accommodation is the ground-breaking initiative introduced under the NDIS. Commonly known as NDIS housing, SDA homes have been designed to provide suitable accommodation and supported independent living for eligible NDIS participants with extreme functional impairment or very high support needs.
Suitable SDA dwellings are purpose built homes that incorporate the necessary provisions to meet the participant’s support needs. Assistive technology, wider door frames, room configuring, bench heights and access ramps are just some of the features of an NDIS property that separate it from a regular dwellings. NDIS service providers are free to come and go, helping the tenants get the best quality of life in a home they can call their own.
SDA participants find that NDIS homes often transform into forever homes, as they enable people living with disability to achieve a level of independent living and develop social skills that they are otherwise unable to in regular accommodation.
The Australian Government has provided a long term commitment to the SDA initiative of up to $700M per year. A participant’s NDIS SDA funding is related to them as the individual, not a dwelling. What this means is that a participant’s NDIS plan will determine the level of funding the people with disability receive. The funding level is based on the participant’s goals and preferences. The design category required will also help guide how much funding is available to them, up to certain SDA price limits.
Tenants are required to pay rent, or make a reasonable rent contribution and cover other personal costs while living in specialised housing.
SDA providers can be investors, a family member or an organisation. Due to the complex nature of investing in the NDIS sector, we commonly see organisations act as SDA providers. An SDA provider is paid directly; with SDA funding based on the participants, it’s common for investors to presume that they are the ones eligible for SDA funds, which isn’t the case.
Apollo Investment focusses on in-demand NDIS property areas
With such an important social impact, balancing the ethical objectives and financial outcomes for investors is what we do best, at Apollo Investment. We focus on only sourcing in-demand special disability accommodation areas. Let us help you address the supply needs for SDA properties through a suite of professional services to ensure you make the most of income yields backed by the federal government.