Passive income SDA property investments

This depends on a number of factors including where the property is located (and what the location factor is for this area), how many participants in the home and whether or not you have sprinklers included. You can expect between $140,000 and $200,000 gross per annum for a two participant home. 

The owner will have an agreement with the SDA provider (the "property manager"). The SDA provider then has an agreement with the NDIS participants (tenant)

SDA Help only recommend investment packages that not only tick all the boxes relating to location data (both NDIS data and our own proprietary data) but also where our recommended SDA providers and their carer network have provided us with a comfort letter that they have sufficient demand from participants waiting to fill the new SDA home. Similarly, they will let us know what supply is in the pipeline so that yoy are first to access the available participants in the area.

generally it's not a good idea from an economic standpoint. According to the NDIS, they expect you to spend as much as $600k on a renovation which is not recommended. Also SDA Providers prefer brand new purpose designed and compliant homes and they are ultimately responsible for finding you a tenant.

One of the various criteria we consider before recommending an SDA Provider in our network is vacancy rate. Currently they sit at zero vacancies. There are a number of factors that contribute to this and I encourage you to know that they are so you can validate when someone says their vacancy rate is zero.

Hybrid SDA house can be used for all of the four categories, including Robust (RO), Improved Liveability (IL), Fully Accessible (FA) and High Physical Support (HPS). It's essentially a design that allows for all category of participant to live there. For example, an FA house design cannot accommodate a participant with robust needs but a hybrid design can.

A Hybrid SDA house design can cater to multiple categories: Improved Liveability (IL), Fully Accessible (FA), and High Physical Support (HPS). This design provides flexibility for SIL providers, allowing participants with degenerative conditions to stay in the same home as their needs progress. However, including Robust SDA in a hybrid design is not advisable. A house designed for HPS, FA, and IL that also includes Robust provisions will only ever accommodate one participant at a time, defeating the purpose of a hybrid design.

Click the link to the official rental income calculator. The SDA price calculator can help you calculate the expected annual income of an SDA dwelling and depends on the participants level of needs, the location and the type of property.

The cost varies across Australia but also depends on the class of building (class 1 or class 2) and the water pressure to the house.

3-4 weeks depending on the SDA provider

The agreement the owner has with the SDA provider is can be 5 years whereas individual tenant leases with the SDA provider can be 12-24 months

There are a number of exit strategies: renovate (retro fit) back to a standard residential property, resell the property on the open market, sell to an NDIS investor that has participants, sell to a SIL provider (they have participants that do not qualify for SDA but still need a SIL managed home). It's important to select a location where the ratio of demand to supply for participants are high but also where the ratio of demand to supply for standard property is high so you benefit from organic capital growth prior to selling. As a reminder, one of our experts and founders built Australia's first suburb capital growth assessment tool that rank orders 15,000 suburbs based on their ratio of demand to supply.