Welcome
There are currently over 630,000 incredible individuals that are currently part of the NDIS family. For these 'Participants', Specialised Disability Accommodation (SDA) is a vital support system specifically designed for those with significant functional impairments or high support needs. As of now, over 24,500 participants are receiving SDA supports, and we have around 8,300 SDA dwellings enrolled with the NDIS.
Let's delve into a pressing challenge.
When we examine the 8,300 SDA dwellings more closely, it becomes evident that there's a notable gap in meeting the standards set by the NDIA (National Disability Insurance Agency).
To understand this better, let's consider the number of rooms. These dwellings comprise 20,942 rooms, out of which 13,401 existed before SDA's inception and were included because they already accommodated individuals with disabilities.
Post-NDIS, 7,541 new rooms have been added. However, 6,598 of the pre-existing rooms don't meet the essential criteria for any SDA category and are marked for retirement. The NDIA classifies these as ‘Basic’ dwellings.
The yearly increase in SDA room supply is just about keeping pace with the demand, which doesn’t account for those seeking their first SDA home or those looking to move from ‘Basic’ dwellings.
You might wonder about the viability and sustainability of such investments, given the high returns. SDA is indeed an economically sound solution.
Consider the costs saved when a patient doesn’t have to occupy a hospital bed longer than necessary, or the societal benefits of providing appropriate accommodations to prevent unnecessary incarceration. Over 29% of our current prison population has a disability.
Moreover, think about the young individuals living in aged care facilities due to lack of alternatives, and the overall impact on families and healthcare costs. SDA isn't just a solution; it's a strategic and compassionate response to a complex challenge.
One important aspect to note is that the NDIS doesn't offer a rental guarantee. This means if a house remains vacant or only partially occupied, the expected income might be less.
SDA is not just a home for the Participants, it is also a place of business for the Care Providers. In other words, you need to think of the dwelling as a miniature nursing home or hospital, or as a hybrid home/commercial property investment.
This type of investment is not for everyone, because it is different, and it is important for you to understand the differences as well as the inherent risks that come with it, not just the benefits.
SDA Data is here to help you to understand what an investment in SDA is all about, and you can take as much time as necessary to get to that point. We are here to help, as the name suggests.
Read as much as you can; we have posted a lot of information, and feel free to ask us as many questions as you want.
Investing in SDA can be very rewarding, but it’s not for everyone.
SDA finance is different from ‘normal’ investment finance, and that is because the significant SDA rental support is taken into consideration by the financier. This is why we usually recommend that you talk to a specialist SDA Finance broker, even if you have a lifelong favourite broker. It’s all about getting you the best deal.
Finance is often the starting point as it often determines the budget, but if that is not an
issue, then SDA Data can assist you with determining a budget that suits you.
It is at this point that you decide if you want to invest in SDA and if you want to appoint SDA Data to assist you through this process.
There are a number of factors that determine your strategy including:
- Budget
- Regional preferences
- Disability category preference
- Personal biases
To help us determine a strategy that suits you, we will provide you with a detailed report on the areas that we will be focussing on given your response to your strategic preferences.
The report will consist of:
- An overview of the region(s), including the latest SDA supply and demand data.
- A breakdown of the stock that is currently registered with the NDIA (old, new,
disability category, dwelling type etc.). - Forecast supply and demand data.
- Further analysis of the areas within the region (most areas breakdown onto between
4 and 5 areas).
This process can take as little or as much time as you require and can involve a number of discussions and Q&A sessions. The important thing is that your strategy is based upon facts and that you are comfortable with your strategic decision.
Once the strategy has been determined, and you have engaged SDA Data by completing the Commitment Form and paying the commitment fee, we set to work.
Sourcing the right block of land is so important, and can in some instances be the biggest determining factor in the success of your SDA investment. Some of the factors that need to be taken into consideration include:
- Is the land flat?
- Does the block flood? Bushfire potential? Excessive noise?
- How close is it to public transport? Shops? Parks? Entertainment?
- How close is it to a Hospital?Is there somewhere safe and secure for the Carer’s to park?
And the number one criteria – how close is it to friends and family?
The chances are that the block that meets all of these criteria will not be a block that was a cow paddock a year or two ago and that what makes sourcing the block hard, as it’s usually a high demand infill block, and infill blocks cannot be held for long. So once a block has been identified, it is important that you are ready to act.
Most builders cannot be bothered with building SDA as it is more complicated and “riskier” to build. By “riskier”, what is meant is that the construction has to be more precise as the NDIS Construction Guidelines are very specific and there are a number of very prescribed rules. Get them wrong, and you the builder has to fix it. This is why we usually deal with ‘commercial’ builders, especially if they have had experience in building nursing homes or medical facilities.
All of our building contracts include a clause that makes obtaining the necessary SDA certification a part of the contract.
Whilst SDA Data will give you all the guidance and support during the investment process, in the long rung it is the SDA Housing Provider that is the most important organisation to you, the investor.
The SDA Housing Provider is registered with the NDIA and is essentially there to act as both your property manager, and perhaps more importantly, to act as your agent with the NDIA and the disability community in general.
In other words, your SDA Housing Provider is there for the long term and is responsible for:
- Ensuring your house is enrolled with the NDIA.
- Appointing the Care Providers
- Finding you the Participants
- Conducting inspections
- Collecting your rent
- Managing any issues that arise by either the Care Providers or Participants
- Managing your property (like a real-estate) agent
- Providing all necessary reports that are required by the NDIA.
- Ensuring ongoing NDIA compliance of your property.
SDA Data will introduce you to one or more SDA Housing Providers for you to interview and get a better understanding of their capabilities, experience, and role.
SDA Data will support you throughout this whole process, from our first consultation through to when the keys are handed over to you (actually to your SDA Housing Provider).
Our role is to make your investment decision well informed, for the process to be as easy as possible and to work with all of your SDA specialists to deliver you a successful SDA dwelling.
As mentioned earlier, the process can be lengthy and frustrating at times, however the rewards are definitely there at the end.
SDA Data primarily provides the following services:
Education
SDA Data was originally conceived as a knowledge hub bringing together expert commentary and insights relating to Specialist Disability Accommodation. Our contributors are all experts in their field and showcase their knowledge in the blogs and other media on sdahelp.org. We believe an informed participant and and informed SDA landlord makes for a equal partnership.
Consultancy
It is our job to ensure that you thoroughly understand what investing in SDA is all about – warts and all. The SDA investment process is slow and somewhat bureaucratic, but if you know what is coming, then there should be no surprises.
It is the job or our experts to provide you with the best advice and guide you to the locations that fit within your budget as well as where there is the greatest shortage of SDA dwellings.
Introductions
To make this work, we need to introduce you to a number of experts within their respective fields; SDA finance brokers, experienced SDA builders and SDA Housing Providers. All of these resources are managed on your behalf by our in-house SDA Consultant who has travelled the highs and low of SDA for man years.
Support and Guidance
Apart from helping you source the right block of land (not as simple as it sounds), within the right location, we provide all of the necessary support from start to finish. We maintain communication with all of your SDA team, report back to you on progress and deal with any issues that may arise. As the name suggests, SDA Data is here to help.
