What is Specialist Disability Accommodation or SDA?
The accommodation is high quality, purpose-built to provide eligible participants with improved living conditions and the ability for them to exercise choice and control over their living arrangements.
Specialist Disability Accommodation (SDA) is delivered under the National Disability Insurance Scheme (NDIS). SDA funding is intended to provide specialist dwellings for participants who have a severe functional impairment or high support needs.
What is the NDIS?
NDIS is the National Disability Insurance Scheme, designed by the Australian Government, to provide information and connection for people with a disability to services and support they require. For eligible NDIS participants, this includes providing appropriate living arrangements.
What is the demand?
Studies in March 2018 found there is a significant shortfall of disability accommodation in Australia, to meet the demand there needs to be a 60% increase in the number of available homes.
Currently, there are over 28,000 Australians with a disability that the NDIS has identified as living in inappropriate accommodation. The NDIS SDA funding is to encourage property investors and institutions to build more disabled centric homes. Sadly, there are also 6,000+ young Australians who are currently living in aged care facilities due to a lack of housing options, and this number is increasing by 50 young Australians a week.
The Australian Federal Government has committed $700m p.a. to funding SDA over the next 20 years. There is currently a major shortfall in disability accommodation in Australia, requiring a 60% increase to meet demand.
What is the opportunity?
NDIS properties meet strict standards. The possible financial returns for properties in the SDA scheme vary greatly depending on the style, scale and accessibility of the dwellings. These dwellings include ‘basic’, ‘improved liveability’, ‘fully accessible’, ‘robust’ and ‘high physical support’. The difference in the dwellings can attract a higher yield for investors. Still, the investor also needs to be aware that the build price can increase significantly to meet the design guidelines required, and also need to be mindful of the ease to convert the house back to a traditional home, if the need is required.
How can I become an investor?
The Australian property industry is mostly unaware of the NDIS/SDA opportunity; however, we are not alone in identifying the SDA funding incentive as a long- term opportunity. Those who are attracted to investing in SDA, it seems the best approach to mitigate any risk will be through working with a team that has all the strategic partnerships in place.
For further information or to register your interest email us at [email protected] or call 1300 897 000.