Why you should invest in SDA property?

How To Invest In SDA Property – Why Invest

Investors who are seeking high returns know that NDIS SDA investment properties come with great opportunities. If you are interested in NDIS and don’t know where to start, read on.

NDIS investment property is not as straightforward as buying a house or land package. However, it has a huge return potential and it helps people in need.

The most common question is what is NDIS and how does it work? Well, NDIS is an abbreviation for the National Disability Insurance Scheme. The program supports people with disabilities, their next of kin and caregivers. It was launched to offer a lifetime solution to the well-being of disabled people.

Specialist Disability Accommodation (SDA) is an important aspect of the NDIS. SDA is accommodation meant for persons who need specialist housing solutions that cater to extreme functional disabilities while offering high support needs. There is an eligibility criterion that NDIS participants must qualify to get the SDA funding.

Simply put, SDA Housing is all about providing sustainable solutions to persons with extreme functional special needs.  It is providing choice and control into the hands of the participant/person with extreme functional disabilities.

Why Invest

Being an SDA investor comes with many advantages. There are many perks in addition to the opportunity of making profits while assisting people who have physical limits to live more comfortably. The scheme’s sole purpose is to rehouse people with special needs into private and accommodation that suits their physical needs.

The housing could be a single free standing house, a villa, group homes, apartments, legacy stock, townhouses or Duplex. As an investor, you can own approved SDA housing and lease it to approved participants. Note that the NDIS can only pay SDA funds to a duly registered provider with an enrolled and compliant dwelling.

Higher NET rental yields (7-8+%) 

To meet the criteria for the scheme, participants must be found eligible by the NDIS. To make sure that all qualifications are met during planning and building, investors use a Registered NDIS Provider. Registered providers are the best because they are familiar with this type of real estate and they know all about the Livable Housing Australia (LHA) standards of user-friendly design. 

NDIS property is growing into a favorite investment for Australian investors for different reasons. However, being able to gain high returns in a low-risk environment is the main point of attraction for real estate investors.

Longer lease

SDA dwellings have another major perk in that most tenants prefer to lease for longer periods than in traditional houses. This gives you stability as an investor and much comfort knowing your property will be billable and occupied for longer periods. 

As an investor, your real estate portfolio will do better if you deal in SDA properties, especially under the NDIS category. The demand is highest and the leases are significantly longer.  This especially if you follow the Property Friends formula of position advantaged choice locations.

Most experienced investors use this strategy to maximize returns on investment. To make the highest possible returns, ensure that your tenants are in for a long-term stay.

Before and during the process of renting your property out, make certain that you have a qualified SDA provider. The provider will manage your property in an efficient and compliant manner. 

The primary goal of an investor is to ‘set and forget’ by having someone professionally manage your properties. As you can see, you don’t have much work to do as the SDA representative will handle everything for you.

Risk mitigation (as the NDIS is owned by the government)

The Federal Government forms part of the National Disability Insurance Scheme. For that, they have set a specific budget for housing and assisting people with disabilities. The scheme is legislation and has been taken as law. 

A lot of risks are mitigated with SDA property, unlike other real estates. This is because it is owned by the government, which is more reliable than if it were run by private companies. 

The SDA Housing program is operated by the NDIS, offering 20-year terms. Note that the government is not acting as a guarantor of the property or the tenant. However, the huge dead and undersupplied market gives investors a green light. The returns are obviously better, especially when the tenant decided to stays for long term. 

You will only receive the government’s approval when an NDIS approved tenant becomes interested in your properties. This means you must make use of an SDA approved provider/ property management firm that will supervise and manage the property on your behalf. All these mitigate the risk on your investments and boost your returns.

It is a great advantage that the government is involved. However, as much as they want to support the NDIS initiative, they also insist on all dwellings meeting the SDA criteria.

One of the main advantages of an NDIS approved SDA Property Manager is to liaise with Care Providers under the strict guidance and regulations of the NDIS scheme. The caregivers are responsible for managing clients with disabilities.

Remember that working with these Care Providers means your SDA property manager can access potential tenants who can be informed of the dwelling, even before the property can be completed.  


SDA scheme compliance

This type of property is highly monitored and regulated. There is a set of standards that you must meet before your property can qualify for SDA tenants. This means that the properties can be harder to finance, as compared to regular real estate.

Design categories of SDA housing

There are four main categories of SDA housing.

  • Robust – This dwelling is designed to offer a reasonable level of physical access to the tenants. It is resilient and comes with little to non-reactive maintenance.
  • Improved Livability – This housing is meant to enhance the livability of the tenants. This is achieved by providing a reasonable level of physical access.
  • Fully Accessible – This housing comes with a high level of physical access for people with limitative physical impairment.
  • High Physical Support – These homes are designed to provide high-level physical access to persons with physical impairments who are also in need of high-level support.

It is obviously very important for supply to meet demand, i.e to do the necessary research into future demand and, this is the hard part, to establish the supply pipeline that you are competing with…

How to Invest

Are you looking to invest in SDA Property in Australia? We are the real estate partner you need to find and own the best NDIS property. 

Property Friends offers solutions to people looking for financial independence via Real Estate. So, where do you start with the investment?

SDA properties are not only ethical and good for the community but they also offer higher returns due to the government funding. If you are considering investing in SDA Homes, our real estate experts are the best in Australia and we can help.

Property friends will walk you through all the background, government regulations and standards, financial benefits and assessed risks to ensure you gain from your properties.

Last but not least …Marketeering…

This is the big one – the skeleton in the closes and yes we are brining it out for everyone to see…
There are incredible THEORETICAL return quoted in marketing brochures, theoretical returns that will never meet reality – simply because the real life story is different…

Do ensure that you are discussing your investment and intentions with a credible company that will tell you the truth.  No point in being blinded by half truth, that leave some very pertinent and very important cost factors out – just to make the figures look good.

For example, check whether the company you are dealing with is suggesting a sinking fund – it’s a “must have” and whilst we are on it… Who is having ownership of and taking care of your investment funds, yourself or the marketing company… it’s not rocket science is it?

It follows that you just need to do your due diligence, but then again this is no different to any other investment.

You make the bed that you lay in – so choose wisely. 

You can learn more about our approach to property advising here , or alternatively, feel free to get in touch and have an obligation-free chat about how Property Friends can help you.  

For daily property investment updates follow our Facebook page here.

Property Friends is a specialist Property Investment Strategist that provides solutions for people aspiring to financial independence, choices in retirement, or leaving a legacy. www.propertyfriends.com.au (03) 9758 5331


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Uwe Jacobs Property Strategist

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