SDA Property | NDIS Property explained

What is SDA Property

SDA Investment Property

The purpose of the Australian Government structuring and developing Special Disability Accommodation Property (SDA) under the National Disability Insurance Scheme (NDIS) is to incentivise investors such as yourself into providing much needed ‘normalised’ accommodation for a sector of our society who have a disability.

You can now help provide someone with disability ‘normalised’ accommodation, located within their communities, so that they have the same opportunity as you and I, of living as normal a life as possible in and amongst us. A highly important and beneficial requirement, just because someone has a disability, this does not differ them from you and I … so why have we always allowed people with disability to become ostracised?

Why have we not and still do not reach out to help someone less physically able, back into our society because they are in a wheelchair or walk ‘funny’?


Sit back and reflect, then dig deep when asking yourself these questions.


Now, if you like some others, begin to change your thinking and also recognise that just because someone has a disability this does not mean they are not as normal or capable as you and I.

What can you do differently you may be asking?

How about starting with building people with disability a new home, that primarily looks and feels just like your own home, unit or apartment. Where the small differences are primarily internally, in that they have been designed to make life easier for your tenant who has a disability, or the driveway is flat allowing for easy wheelchair mobility; or if in an apartment building the lift is of a grade that allows for mobility vehicles to get in and out of easily.

Win-Win Investment

This is not only a feel good investment opportunity for you with positive social impacts, it is an Investment that is a Win-Win, an investment into real estate which fulfills a social need – one for which there is a massive shortage of supply,  which in all probability will never be filled.

This is an investment in which returns for you the investor, can be higher than you will get anywhere else in residential property. The overall result being an incredible do good, win-win investment opportunity when done correctly.

NDIS / SDA Property offers high yields and includes government funding for a 20-year period not only ensuring your investment is risk mitigated but also a profitable investment that could pay itself off in 8 – 10 years. And through the NDIS initiative your rental income is indexed to CPI. How good is this.

Risk Mitigated Investment with high returns

Property is a long-term play; property is resilient and does not have the instability of most other asset classes which easily become affected by economic change. With Federal Government backing and longer-term leases, SDA Property investment is risk mitigated and thus a rather low risk profile you would agree.

Why SDA Property as an Investment

The purpose of the NDIS / SDA Property as a Federal Government initiative, is to assist people with disability get into more appropriate accommodation; whereby an investor such as yourself, put your hand up to own a SDA Property, which is purposefully built as a normal dwelling, but with modifications to allow for your tenant(s), who have disability, to live as normal a life as possible and within their/your wider communities.

Demand for SDA Property under the NDIS

6,000 younger participants live in unsuited Aged Care facilities! We need to get them out for their mental wellbeing and also to give back a much-needed bed to our ageing population.

There are about 400,000 participants who qualify for the NDIS with around 18,000 who have applied for Rental Assistance under the NDIS SDA housing scheme. The need for SDA Housing is immense and the supply woeful. And this becomes your investment opportunity.

This much needed incredible initiative was implemented by Federal Government, as the demand for such accommodation is in dire undersupply, with most disability sufferers unfortunately living in inappropriate accommodation right now!

It only takes you to open your eyes just a little bit to also become aware of the tragedy that is usually kept behind closed doors. It will break your heart if you are brave enough to become informed.

What is the NDIS Scheme

This initiative falls under the Federal Government’s NDIS scheme (National Disability Insurance scheme) set up to provide services and care, to people with disability, who qualify for the NDIS assistance package. This initiative has been promulgated as Law.

This dire need is currently not being met, meaning further hardship for our fellow Australians and their families who live with their disability.

There are physically thousands of young people right now, living in unsuitable retirement care facilities today, and thousands of others living in other unsuited accommodations; who would do anything to be able to move into dwellings in the suburbs you and I live in. Dwellings which are also close to employment hubs, education facilities, shops, hospitals, parks, public transport, care givers etc … but unfortunately just cannot as there is a dire undersupply further impacting on their lives.


“Hopefully by now you are with us in identifying this tragic and well-hidden crisis?”


The problem is your Investment Opportunity

The problem has been identified by Government and a solution created to invite investors (the private sector), to put their hands up to become an owner of suited property, and in return receive higher rental yields over other properties, which is also backed by government, through the NDIS and which is a long-term play of 20 years. Meaning your social investment opportunity which doubles up as a “feel and do good” investment in creating a win-win.

The Australian Federal Government have committed significant funds, every year for the next 20 years, to support and provide a housing solution for individuals with disability. Inviting you and I and others in the private sector, to put our hands up to help provide SDA approved homes for people with disability.

This becomes your investment opportunity to secure a win-win investment, by delivering suitable complaint housing backed up with strong and secure rental income, longer term tenancies, plus capital growth opportunity.

How does it work?

A person with disability applies to the NDIS for a plan which also includes accommodations. Upon which they then are assessed to determine if they qualify and at what level they qualify. This will determine the best suited appropriate housing and rental assistance, which is then added to their NDIS plan. This now allows for the appropriate funding to cover their accommodations and or their carers accommodations when they become your tenant.

The Federal Government wants this to happen because they are unable to provide housing to meet the growing demand. The situation is dire. It is thus in the Governments interest that you and I invest and thus have ‘access’ to the NDIS funding, to cover the predetermined rent.

By design, the Australian Government want us to create more housing (houses, units, apartments etc), which are suited to people with disability and which meet and are complaint with SDA requirement.

The Australian Government also want to see appropriate housing integrated within communities for people with disability, to live as normal a life as possible and practical, in and amongst their and our communities.

NDIS Property Investment

Providing a new Dwelling under the SDA initiative

It is highly important, that prior to the home being built, that the dwelling plans meet with stringent government guidelines and requirements, meaning they will be compliant to the SDA standards. And no – they do not look like a hospital or hospital ward. From the outside they present as your usual suburban home and on the inside they will have wider passage and doorways, some other modifications to meet and assist tenants with disability … but otherwise present as any home you would want to live in yourself.

Renting out an SDA Dwelling

An SDA dwelling has another major advantage in that it is attracting tenants who prefer a much longer lease period, giving you the investor further stability and comfort in knowing your investment will be tenanted for longer periods. Some leases are 10 + 5 + 5 year periods through the head lease agreement with the approved SDA management company.

As an investor you would want to secure a SDA property in the NDIS category where demand is highest, where government funding is highest and rental leases are the longest. This strategy will maximise your return on investment. With 5 levels of categorisation, focus your investment on the category which ticks more investment boxes for you and your investment strategy. Keep focus, this remains an investment vehicle with added benefits of you now having the ability to make a massive difference to someone in great need.

When renting your property out, you will appoint a qualified SDA housing provider as your property manager and delegate all rental responsibilities over to them, to rent out and manage your property, in a complient and efficient manner. This strategy further removes another level of perceived risk out of your investment.

As an investor, when investing in property your goal is to ‘set and forget’, by having your property professionally managed. Under SDA property it is no different, you bring on board an approved SDA property manager, set and forget, whilst knowing you are making a massive difference to people with disability. How good is that.

Risk Mitigation

This is the Federal Government by the way and forms part of the National Disability Insurance Scheme in which they have set aside a significant budget for housing for people with disability and has been legislated and is promulgated as Law.

Risks are mitigated in this investment class as the NDIS is owned by the government and is a very long-term strategy. The SDA Housing is managed by the Government, offering 20 year terms and is legislated by law. Government are not guaranteeing the property or the tenant but based on a massively undersupplied market, and an unfortunately a growing demand, we feel confident that attracting a tenant is viable and having the tenant stay for a longer period is real, as they usually will not have easy access to other SDA housing as the waiting list for SDA Housing grows.

You will only receive the Government incentive upon having a tenant in place, who have their NDIS plan approved and are eligible to be your tenant in your SDA approved dwelling. Meaning it is important to make use of an SDA approved property management firm to oversee and manage your investment property on your behalf, further mitigating risk on your investment.

The government is highly proactive in wanting to support the NDIS initiative, but are also firm in terms of the dwelling meeting SDA requirements.

When it comes to the responsibilities of an NDIS approved SDA Property Manager, one of their roles includes working close to Care Providers under the NDIS Scheme, who are managing clients with disability, who have been approved under the NDIS to become eligible tenants in SDA housing. A bit of a mouthful but it means the system has been set up to mitigate your risk in helping out the Australian Government in providing much needed rental accommodations.

Remember that working alongside these Care Providers, means your SDA Property Manager has access to a pool of potential tenants who can be lined up even before your dwelling has been completed.

A proactive SDA Property Manger will begin working with tenants during construction mode matching property to appropriate tenants who are qualified under the NDIS scheme. The sooner your investment is tenanted the higher the return on your investment.

Rental Income

The funding you receive is dependent on the type of property class you invest in and how many bedrooms the dwelling has.  Rents can vary from around 7% pa upwards of 17% pa and dependant on the class/category of dwelling and the number of tenants. As with any other property class, rents are not guaranteed. What is guaranteed when your dwelling has been given it’s certificate of compliance and when you have a tenant, is the Governments co-payments. Meaning the rent which your tenant has qualified for is guaranteed by Federal Government Law, whilst they are your tenants.

This amount is also indexed to inflation for the life of the Scheme allowing your investment to receive ongoing rental increases for the life of your investment.

It is widely recommended that you work with a team who know and understand the complexities involved and your property needs to be professionally managed. Trying to go it alone or working with the wrong team could result in your SDA Property not complying and thus not eligible for NDIS approved funding and result in becoming an expensive mistake for you. It is for these reasons why we have systemised the investment opportunity and surrounded ourselves (and thus you our client), with professional services to ensure all complies.

Financing the Investment

When it comes to financing your investment the banks have still not gotten their heads around this investment, which means you need to be in a sound financial position and have a larger deposit on hand as bank valuations are coming back on the properties under value thus requiring a larger deposit.

It thus makes sense to use one of the preferred and recommended mortgage brokers who are able to work with the bank on your behalf. Ask us for a referral to a qualified broker which will save you time, stress and money.

Your Return On Investment

  • High Rental Yields
  • Longer term leases
  • Capital Growth Potential
  • Risk Mitigated
  • Do good investment

How the numbers might work is that an SDA Property under the NDIS could be paid off in around 8-10 years at current interest rates, based on the strong rental yields. Depending on classification of the dwelling, the number of tenants and the location your rental yield could be from around 7% pa up to around 18% pa. This by all accounts is significant.

For putting your hand up to help government out by providing a new dwelling into the rental pool to accommodate people with disability, your investment will offer you a significant amount of passive income as part of your retirement planning or property portfolio planning strategy.

SDA Property thus can be a very sound long-term investment in which to invest and park your money. Read more here

SDA Property Investment Strategies

Read here for intelligent strategies of maximising and taking advantage of what could amount to $100,000 of rental income


2 thoughts on “SDA Property | NDIS Property explained”

  1. John says:

    Is SDA property available in Queensland? What is the policy to apply for it? Any information that is specific comply for SDA property in Queensland? Thank you

    1. admin says:

      Queensland has the most mature NDIS / SDA property model, other states have a lot of red tape you would want to avoid. What is your investment budget and what rental yield are you hoping to achieve John?

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