The rise in the need for Specialist Disability Accommodation (SDA) in Australia is a great opportunity for investors who seek secure and lasting returns. SDA homes, built to aid those with severe needs, offer more than just vital social help. They also provide a strong path for investment. Here, we share the top five reasons why SDA housing investment makes a safe and rewarding choice for the long term.
High Demand for SDA Housing
Australia is seeing a big lack of the right homes for people with needs. With the NDIS in place, the need for SDA homes has grown, pushed by the aim to give users a better way to live. As per the NDIS, about 28,000 Aussies need SDA homes. Yet, the homes we have now do not meet this need, which leads to a high need and low supply.
SDA housing investment provides a steady flow of renters, which is helped by the state’s financial aid. As the call for good homes grows, SDA homes are seen as a better choice for buyers. In a world where rental homes can sit empty, SDA housing shines for its sure, long-term renter deals.
Government-Backed Funding for SDA Investments
One big perk of SDA homes is cash support from the government. The NDIS gives funds to the SDA to aid those with disabilities in finding good homes. This pledge by the state builds a safe space to invest, making sure that those who invest get steady gains.
Investors in SDA homes earn rent from the state. This gives them peace of mind about payment. Unlike other homes, where rent may rise or fall with the market, SDA homes give stable rent backed by the state. The rent is often higher than for regular homes.
Long-Term Tenancy Agreements
SDA housing investment aims to meet the needs of people with severe disabilities. Those who live in these homes look for a lasting place to stay, which lowers turnover rates a lot. These long-term deals bring stability to both the renters and the owners, who also benefit from fewer empty units and steady rent.
SDA tenants get homes made to fit their needs. This boosts the odds they will stay in these homes for a long time. A firm, long-term group of tenants gives more safety to the plan. This makes SDA homes a smart pick for those who wish to grow a strong, low-risk base.
Favourable Rental Yields
The rent gains from SDA housing investment are much higher than those from usual property deals. This is mainly due to the rare style of the homes and the strong need for good homes made for people with disabilities. In many cases, those who invest in SDA homes may get returns as high as 10-12% per year, far above the usual rent gains from normal properties.
These big gains come from top rents paid by the state. This helps tenants find homes that fit their needs. For those who invest, this leads to a great chance to tie cash growth with a good cause.
Positive Social Impact
One key perk of SDA housing investment is its good social impact. It offers safe homes to those with major needs. This boosts their way of life, while also giving them more choice and pride. This kind of plan fits with social aims and helps the wider group by closing the gap in homes for the disabled.
SDA home investors make a smart choice and help change lives. The clear social gains of these funds can push those who aim to link their money goals with their core values.
Best Practices for SDA Housing Investments
To maximise the potential of your SDA housing investment, follow these best practices:
- Partner with experienced developers: Choose builders with expertise in constructing SDA properties to ensure compliance with NDIS standards.
- Understand the categories of SDA: SDA properties are classified into four categories—Improved Liveability, Fully Accessible, Robust, and High Physical Support. Investing in the right category for your market ensures long-term success.
- Consult with NDIS specialists: NDIS experts can provide invaluable insights into tenant needs, location strategies, and compliance requirements, increasing the likelihood of a successful investment.
- Location matters: Properties located near services such as healthcare, public transport, and social amenities are more desirable for SDA tenants. Ensure the property location enhances the quality of life for potential tenants.
Concluding Words
SDA housing investments are more than just a financial opportunity—they are a chance to contribute positively to society while securing a reliable, long-term income stream. With high demand, government-backed funding, long-term tenancy arrangements, and attractive rental yields, SDA housing stands out as a secure and rewarding investment.
Moreover, the added benefit of making a tangible difference in the lives of people with disabilities makes this investment choice both fulfilling and financially sound.
If you are considering investing in SDA housing, it’s essential to partner with experienced builders and experts who understand the intricacies of NDIS requirements. This strategic approach ensures your investment is not only profitable but also impactful.
Contact us today to learn more about how AEON Home Builders can assist you with SDA housing investments and create a secure future while making a positive social impact.
