The National Disability Insurance Scheme (NDIS) is a new way for people with disabilities to access government support and services. This funding is provided directly to individuals, rather than through other organisations.
One such area is Specialist Disability Accommodation (SDA), a type of housing designed specifically for people with specialised needs. In order to be eligible for SDA, individuals must meet certain criteria.
What is SDA?
Basically, it’s housing that has features to help a person with a disability live independently. These homes can range from residential aged care facilities to group homes, and can also be a person’s own home. They provide a safe, comfortable place to live and help participants live independently. The homes might be able to assist with transportation needs and include assistive technology.
Specialist Disability Accommodation is a type of housing designed for people with severe disabilities. It is specially adapted to accommodate their needs and abilities, and can include a shared home or an apartment. It is often accompanied by other people without a disability to help them develop life skills and live more independently. If a person is eligible for SDA, they may also receive Supporting Independent Living (SIL) services. A person living in a specialist disability accommodation may also be eligible for the SIL services.
Why Should You Invest in an SDA Property?
As an investor in NDIS housing, you are eligible to receive high returns. These properties are specifically designed for people with significant physical impairments who require high levels of support. If you are interested in this type of investment, you should seek out a reputable builder or provider who can help you with the process.
SDA is a growing sector, with increasing demand. It typically requires a higher entry cost, but offers a greater investor return than traditional residential housing. The National Disability Insurance Agency (NDIA) and the Productivity Commission support this market, which has a high growth rate. As a result, Australian residential property is chronically undersupplied. However, more than 12,000 NDIS participants are in need of more SDA homes, and the demand is only growing.
This is an attractive investment opportunity as investors can earn a return on their investment with the promise of higher rental income than the market, and all the while benefiting people with disabilities by improving their quality of life.
How do you find a tenant?
An NDIS participant who has a specialist need, such as physical impairment, may be eligible for SDA. There are several ways to find a tenant for SDA, including by advertising your vacancy on the NDIS website. You can also contact prospective tenants directly. A vacancy finder allows you to filter search results by different criteria, such as type of building, SDA design category, number of people living in the property, and budget. If the dwellings are suitable for the NDIS participant, it is important that they meet their needs before committing to a service agreement.
Who pays the rent?
The NDIS will help pay for the costs of SDA. NDIS funding for SDA provides for the capital costs of the dwelling, and it supports investment in high quality SDA dwellings. However, SDA does not cover the costs of person-to-person support, such as supervision and care.
An SDA property’s income is made up of numerous components. SDA payments are provided by the NDIS, with members paying an affordable rent contribution of 25% of their core disability support pension.
SDA Investment and Provider Registration
The Specialist Disability Accommodation market is part of a 22 billion dollar government funded scheme. Whether you are an existing NDIS provider, an investor, developer or an individual looking at investment properties, there is an opportunity and a piece for every party. Fronto Advisory can streamline the SDA registration process for you.
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