Jumping into Specialist Disability Accommodation without knowing precisely where the demand for these specialised homes is greater than current and emerging supply is a recipe for trouble. The risks are real:
- Investors can end up with empty properties and mounting costs and potential mortgage defaults.
- SDA providers might struggle to find tenants, hurting their reputation and team morale (dealing with disgruntled investors leads to high staff turnover).
- Lenders could face defaults on properties that aren't generating income and face potential reputation damage.
Some providers are still charging hefty onboarding fees ($5,000+) even in saturated markets, creating a painful situation for everyone involved.
Bottom line: Do your homework on regional demand and supply before putting money into SDA. Know which areas to avoid, or you might be setting yourself up for disappointment.
The NDIS publishes supply and demand data every quarter for SDA housing. SDA Data then analyses and interprets this data with on-the-ground confirmation from those in the field such as SDA Providers, Carers and Lenders. Our data is also relied upon by the lenders to assist them in making lending decisions.
