How to Set up a Good Property Investment Portfolio

Are you looking at your next investment property? A specialist disability accommodation (SDA) home could potentially make an excellent addition to any property portfolio.

We cover the top three benefits of investing in SDA properties. Not only are you assisting the community, but possibly your financial portfolio too.

What housing is provided under the National Disability Insurance Scheme?

The federal government is committing up to $700M per year to provide suitable specialist disability accommodation (SDA) for Australians with disability. An NDIS SDA property must be built to strict design standards as set out in the SDA rules by SDA builders.

This ensures that eligible NDIS participants with significant disabilities can access homes across four design categories to provide for their needs.

Specialist Disability Accommodation explained

Under the NDIS scheme, SDA has been introduced to address the dire need for suitable housing for Australians with extreme functional impairment or very high support needs. For participants in the NDIS who require specialised housing, an SDA home can be life-changing.

SDA homes are built to four design categories, each with different provisions for different needs. For a property to be approved under the SDA scheme, it must be SDA compliant — the SDA rules set out the design standard for special disability accommodation.

Approved participants will tenant an NDIS home that is within one of these categories to suit their individual circumstances:

  • Improved livability
  • Fully accessible
  • High physical support
  • Robust

As a potential SDA investor, you may be interested in how the tenanting process works. The property is registered through an SDA provider who helps connect NDIS participants (tenants) to a suitable home.

SDA providers receive SDA payments from the Australian government. SDA funds are to help cover the cost of building and maintaining the property, and are the incentive offered to investors for helping to meet the supply needs of NDIS property.

NDIS service providers, on the other hand, refer to the many and varied different support services, such as allied health professionals and care workers, who work with SDA participants within their homes to ensure a full level of care.

The top 3 benefits of NDIS property investment

Investing in an SDA dwelling may be an incredibly rewarding investment option that is unique from a standard investment property.

Here’s why:

1. NDIS properties provide forever homes for Australians with disability

The NDIS-approved tenants that occupy NDIS properties often find their forever home when they tenant an SDA property. This is because, without adequate provisions for their support needs, NDIS participants would be left to reside in a nursing home, despite their age.

2. SDA housing operates in its own SDA market

Holding assets within a portfolio that are uncorrelated to one another is a risk management strategy that many prudent investors take to ensure diversity amongst their investments. SDA dwellings are unlike standard residential properties and, therefore, as investment options, operate in a different market.

The demand for suitable housing is high. Given that the scheme has only been operational for a few years since the NDIS funding was introduced, there is still a supply shortage in many areas of Australia. What this translates to for potential investors is a low vacancy rate with long-term tenants and unmatched capital growth potential.

3. Unrivalled income yield potential

One of the financial objectives of property investors is to attract rental income on top of capital growth. The rental yields available in NDIS property investment are one of the main benefits for investors.

Given that the SDA scheme is backed by federal government funding and the rental income of properties is formed with a reasonable rent contribution from tenants, the yields possible range anywhere from 10-20% per year!

How Apollo Investment can help you purchase approved SDA housing

For investors who seek more than just financial return and want to strive to meet their ethical objectives too, an NDIS property may provide a superb ethical investment option. At Apollo Investment, we connect private investors with NDIS homes through an end-to-end solution. We pride ourselves on creating NDIS properties that provide high yields and are placed for maximum capital growth.

Whether you need help understanding your investment options, navigating SDA funding, or sourcing a specialist property management firm, we provide the guidance and support you need to become an NDIS investment property owner.

Connect with our team of industry professionals to access the benefits of NDIS property investment.

 

top three benefits of investing in SDA properties