It is important to understand the current and future SDA housing supply if you are thinking about investing in SDA properties.
You can earn up to 8-10% annually with this type of property as the Federal Government, through the NDIS, provides incentives by way of SDA funding, paid to the property owner. This is in addition to the Reasonable Rent Contribution from the tenant (NDIS participant) which is made up of 100% of their Commonwealth Rent Assistance and 25% of their Disability Support Pension. The SDA funding component within the National Disability Insurance Scheme is a vehicle for social and economic participation.
The Opportunity in SDA Properties
The SDA market has grown to become a $2.5 billion asset class, In just five years. According to Specialist Disability Accommodation (SDA) – Supply in Australia published in November 2021. The findings are:
Up to 30,000, NDIS participants with ‘extreme functional impairment’ or ‘very high support needs will receive Specialist Disability Accommodation (SDA) funding by 2025, according to the government. It is important to understand the current and future supply of SDA housing in order to support the SDA market's development.
There is an even higher demand for SDA properties, given that around 10,000 people haven't received funding yet. In light of the old or existing housing stock that must be replaced, there will likely be a future demand for even more SDA housing.
SDA Opportunities with NDIS Property Australia
Listen to one of our podcast series where Minh, Debbie and Grace speak about the upcoming opportunities and developments projects for SDA. They mainly discuss the potential SDA apartment opportunities we may have coming soon, which are going through the vetting process with our acquisitions team.
Episode 62 - SDA Opportunities (Sep '22 Update)In this episode, they discuss some future sites for SDA apartment complexes, including these future SDA apartment complexes:
Woolloongabba, Brisbane
Some advantages of the area:- The 2032 Olympics will be centred around Woolloongabba.
- The apartment is within walking distance of transport and shops.
- The PA hospital is nearby.
- The new cross-river rail station in Woolloongabba will increase transport connectivity. We have 9 SDA apartments that will be completed in February 2023.
- Walking distance (virtually next door) to the Chermside shopping centre, the 2nd largest shopping centre in Australia.
- Close to buses and close to the library.
- 7 km from the city
- 5 km from the airport
- It is a block of 91 apartments, with a childcare centre proposed to be in the building.
- 400 metres from Rockdale station, which is next to the Rockdale plaza.
- Nearby Shopping centre.
- Close to the Northwest Business Park.
- Family-oriented area.
Chermside, Brisbane
Some advantages of the area:Chermside is a good area to consider and the project is for 12 Improved Liveability units which are expected to be ready in May 2023. According to the developers, the units will be big enough for wheelchair users, although they will be certified as Improved Liveability SDA compliant.
Rockdale, Sydney
Some advantages of the area:The project is in a very good location and many families and young professionals live there. The project will be released in late 2022/early 2023 and the construction work will start in early 2023. It is expected to be completed by the end of December 2024.
The units are a good size unit consisting of 2 bedrooms. Investors are advised to buy early as it is likely prices will go up in the upcoming months.
All you need is a 10% deposit to lock it in and the balance due at the completion of the project.
Castle Hill, Sydney
Some Advantages of the area:In discussions with SDA providers they have advised us that the demand in Sydney is very high - and even though Castle Hill is a little way out of the city, it is where many families live, making it a very strategic area for SDA.
Feel free to contact us for more information, and we will be happy to provide the details you need to know about prices, floor plans, and dimensions.