UNPACKING THE RETURNS - WHY SDA IS A MUST INVEST (if you can)
This 'Special Situation' in residential property, presents extraordinary high yield & lower risk
On this page you'll find out...~ Why invest in SDA / NDIS? ~ What are the restrictions? ~ Where are the SDA properties? ~ What are the pitfalls of SDA? ~ Is there a catch? FAQ about SDA. ~ Gather more information.
Why Invest in SDA / NDIS ?
Honorable, Admirable, Financial - Warm heart. Cold numbers.
1. Social Impact Investment significantly assisting and dramatically improving lives.
2. Suitable Australian residential property to satisfy the National Disability Insurance Scheme (NDIS) is chronically under-supplied.
3. Specialist Housing ' designed-to-suit-purpose' property, makes unique investment assets.
4. Substantial Financial Reward in rental incomes through SDA funds.
5. Income Security. Certainty of tenancy, with the right provider model.
Are there restrictions in SDA property?
There are very strictly adhered to guidelines, on all aspects of the property. These are practical 'quality of life' guidelines. Not restrictions.
SDA is a radically different investment decision. It's not harder. It just requires a different perspective
Imagine you are investing in the business of providing a private hospital at a residental property scale.
Your role as the investor, is to provide the business of the best 'home and care' experience for participants.
The third-party 'partners' you choose to engage, (Providers, SILs - see FAQ below) provide the services to care for the tenants.
The services need to be of highest level, as they are not just looking after the participants as they should be, but should be so exceptional that the participants only want them and no-one else to look after them.
Where are the SDA properties?
SDA demand is nationwide. Naturally there is typically greater demand in line with greater population.
However this is a 'specific demand' driven initiative.
Thinking about the returns? The critical issue is not to fall into the trap of solely working off the 'highest returns' category. It's the very fact that there is a defined demand in a given area, that de-risks the property's tenancy.
Do not think you should just build in an area and then find tenants. Don't just rely on the demand maps either.
Before buying or building SDA, you need to know the level of demand and the nature of the category demand that exists 'TODAY'.
We work with independent providers, to always get an 'up-to-the-minute' understanding, and interpretation of the true demands in key areas, before we even talk to our clients about their options.
What are the hurdles or pitfalls of SDA property investment.
NDIS has been around for years.The 'special situation' opportunity in real estate presents now, because Government is seeking to get aged (40 plus yrs old) buildings and facilities off the Govt balance-sheet and transfer the 'landlord role' into the private sector.
While the specialist nature of the features and design compliance of SDA housing typically requires moderately higher entry cost, the investor return is significantly higher than traditional residential housing.
Specialist Disability Accommodation (SDA) property is backed by the National Disability Insurance Agency (NDIA).
According to the Australian Government Productivity Commission review and analysis, suitable Australian residential property to satisfy the National Disability Insurance Scheme (NDIS) is chronically under-supplied.
Of the more than 400,000 participants in the National Disability Insurance Scheme (NDIS). Around 12,000 of those participants are in real need of more suitable accommodation.
An estimated 28,000 people require Specialised Disability Accomodation (SDA) property to be built. This number is growing every year and so your SDA Property investment will have ongoing demand for years to come.
National Disability Insurance Scheme (NDIS) and Specialist Disability Accommodation (SDA) FAQ
What is SDA?
The SDA process is complicated. It requires specialist knowledge. Specialist Disability Accommodation (SDA) is housing that has been specially designed or modified to suit the needs of people who have an 'extreme functional impairment' or 'very high support needs'.
Where participants are eligible, the NDIS funds the cost of the housing through SDA payments to an SDA provider.
What is NDIS?
The NDIS is a government initiative to assist participants to live independently. This includes:
Supports that build people's capacity to live independently in the community, supports to improve living skills, money and household management, social and communication skills and behavioural management.
Home modifications to the participant's own home or a private rental property and on a case-by-case basis in social housing.
Support with personal care, such as assistance with showering and dressing. Help around the home where the participant is unable to undertake these tasks due to their disability, such as assistance with cleaning and laundry.
The NDIS may also contribute to the cost of accommodation in situations where the participant has a need for specialised housing due to their disability.
What is a Provider?
The provider manages the participants within the home you provide for them. They are responsible for finding and placing the participating tenant. They are also responsible for the receiving and the distribution of rent to landlord via a trust
There are several structures. In the past has been common for a SDA Provider to also provide SIL services. That is being changed so that the SDA Provider and the SIL are separate entities. This is to give the participant greater degree of choice of service, and no longer obligated to have set-in-stone accomodation, providers and SILs effectively as one.
What is SIL?
Supported Independent Living.
Supported Independent Living (SIL) is assistance provided through paid support workers at the home, that helps participants live as independently as possible. SIL includes physical supports like helping you get in and out of bed every day and for people who need help doing things by themselves. It includes keeping people safe. This can sometimes be a group of people sharing a home together, or one person receiving support in their own home.
What is OOA?
On-site Overnight Assistance.
On-site Overnight Assistance (OOA) requires an additional space to be used by support staff who provide support services overnight to participants living in the same dwelling that contains the OOA space (or in a near-by dwelling).
What are the Obligations of SDA Registered Providers?
Registered Providers must have a written service agreement for SDA with the participant.
Find out more in the NDIS, NDIA guide documentation.
Who manages the tenancy of my SDA property?
The SDA Providers we work with are responsible for recruiting suitable participants as your tenants. Typically they have waiting lists for properties to be built to satisfy the demand.
SDA funding is provided for participants who meet the eligibility criteria. SDA is funded under the NDIS through individual participant plans.
Under the NDIS, eligible participants receive funding in their plan, that they can then use to approach the market through their providers, to find an enrolled dwelling that meets their needs.
Who is responsible for the management and good maintenance of my SDA property?
There are a number of different models being engaged by different SDA Providers. Many Providers outsource the property management to Real Estate agents
Our preferred SDA providers whom we strongly recommend and entirely in your interests, (zero gains for us), take on the responsiblity of manging your entire investment.~ They manage the recruitment of the participants.~ They manage the services (new or existing) to support the participants as often participants will already have preferred support services.)~ They manage the property under a real estate license.~ They manage the collections and payments of rent.
How are the SDA funds paid to me as the property owner?
Different providers have different fees and processes of paying the property owner.
This typically depends on the commercial contractual agreements between the owner and the property provider.Having spent considerable time researching many different fee structures and payment processes, we are confident our providers offer the most compassionate, and most advantageous financial modeling and payment process.
What are the SDA Management fees?
Each independent SDA Provider has varying fees to the owner, dependent on the varying services they may be engaged to perform.
To our knowledge our preferred providers offer the whole package for the lowest management fees available in the market.
Ask us to detail the figures with you.
National Disability Insurance Scheme and Specialist Disability Accommodation require Investors to support much needed growth.
Specialist Disability Accommodation provides investors with a very powerful Social Impact Investment vehicle. Make demonstrable and significant positive change to people's lives. Beyond the immeasurable sastifaction of improving other people's lives, enjoy the benefits of the significant financial reward for the next 20 years.