Specialist Disability Accommodation under the National Disability Insurance Scheme
The emergence of the Federal Government’s $5 Billion Funding Program to build accessible housing for 28,000 Australians with disability is being taken seriously and gaining momentum rightfully so … read here and here
SDA Investment Property will continue to gain momentum naturally resulting in increased in demand.
“The SDA market remains in its infancy and there is much more to do to create an SDA market that delivers the scale of housing anticipated,” Summer Foundation chief executive Di Winkler said.
In any product launch in any industry you have the leaders who are the early adopters who come into the market first (such as yourselves, who satisfy themselves that this is a risk mitigated investment, and like other investment comes with a few challenges) but you believe in the product, in the cause and the Return on Investment makes financial sense to you, so you are committed to your goals being optimistic with the outcome.
Next come all the followers who first watch people like you take the lead and when it looks good then they willing to try and jump in because it is working for you … and it is at this time the followers land up paying more as developers and landowners increase profits on the back of an increasing demand. Meaning the followers yield will drop as a percentage. Hey but this is life and followers accept the consequences of waiting.
Lastly come the others, called the laggards who have watched you lead, have watched the followers and now don’t want to miss out because it is working for you and the followers and the fear of missing out is too strong. And they jump in at even higher prices and lower return on investment for paying the price of waiting to see. But it is better than those that never commit to themselves and always look for reasons not to do something over their true financial need to do something. Strange but true.
The recent property events in which this was visible for all to see started with the successful NRAS program where the early adoptors enjoyed higher returns than the followers, then on Duplex homes whilst they were affordable and offered built in equity at completion, followed by Dual Key dwellings which dropped from close to 7% yields sitting on around 6% now and in areas you would not have invested in if it were not for the 6% yield you are chasing.
Is SDA property under the NDIS a “scheme’, and will the government cancel it before the 20 years?
Is SDA Property a scheme?
It sure is, under the definition “a large scale systematic plan or arrangement for attaining a particular outcome by putting a particular idea into effect”. So yes it is !
Will the Government cancel it before 20 years?
Anything is possible but in this instance highly unlikely as the SDA initiative under the NDIS and the National Disability Insurance Scheme, which is now in its fourth year, will support $700 million in specialist disability accommodation payments annually and has been promulgated under Federal Law as a 20 year program. Also logically, if the government is saving you the tax payer and themselves a heap of $’s by paying you an incentive which is lower than the cost to them, this initiative is not only highly sustainable, but it is also highly financially beneficial. AND if a program is cancelled, Government has never not Grandfathered any initiatives in modern history.
“We are improving the range of options available to participants who have SDA in their NDIS plans, while also stimulating growth in the SDA housing market,” NDIS minister Stuart Robert said.
It does not matter whether you believe this is just another scheme (with negative connotations), or whether you believe the government will pull the plug or whatever your belief is … the NDIS by all accounts is not going anywhere except forwards, by design and on purpose. So come along for the incredible ride or create unsubstantiated excuses, participants who become someones tenant will allow the property owner to earn a substantial yield for the privilege.
Why is the SDA initiative Sustainable?
One of the primary reasons the SDA program will continue to thrive is “To accommodate a person with a disability, costs us tax payers close to $1m dollars per annum or a quadriplegic in a hospital around $1,500 per day” we are led to believe, which covers a carer, accommodations, transport, insurances and individualised support services etc. including all up costs.
Lets go in ultra conservatively and say it only costs $500,000 per annum to house a person with disability in current status accommodations … you come along and put your hand up as an investor and agree to house people with disability and in return you get $38k per participant per annum …. you are saving tax payers and the Government a whopping $462,000 per year!
This is how the SDA program under the NDIS is sustainable (even if it costs the Government a mere $100k pa to house someone with disability you are still saving the tax payer and the government $68k) and we know it costs way more. So is it sustainable, damn right it is!
Check out ‘Parliament of Australia’ in paying for the NDIS here, to read up on funding the NDIS with an expected 460,000 Australians to receive individualised supports with a budget of $21.5 Billion Dollars for those who qualify for carer support only, under the NDIS, costing around $46.7k per person, per annum.
Approximately 4.3 million Australians (18%) have some form of disability (ABS 2016a) and 5.8% having a severe or profound disability requiring care, mobility or communication assistance. You can now help make a difference; and get handsomely rewarded for doing a heart warming wonderful turn in helping people far less fortunate than you!
Only for those of you reading this blog and other information on our site who have faith in the SDA program and want to know more should reach out to us. If we still have to convince you then you are not the type of clients we are looking to work with in providing a solution which ticks your boxes for you.
What is an Ideal SDA property investment and why use our professional services?
Our solution is all encompassing to provide peace of mind in that :
- Once we understand what your investment budget is
- Once we understand what yield you are wanting to achieve
- And once we understand your other requirements and the purpose for you investment
- We then customise and source a ‘package’ to suit the above in a location that suits
- The dwelling is designed to comply with strict guidelines as set out under the NDIS
- The builder appointed understands these requirements and builds in order to ensure you will attain the compliance certificate once completed
- During construction you will be introduced to qualified and licensed SDA Rental Managers who will source participants (tenants) and manage the property for you