Insights into NDIS SDA Property Investments: Essential Tips for Success

By Uwe Jacobs

At Property Friends, we understand that investing in Specialist Disability Accommodation (SDA) properties under the National Disability Insurance Scheme (NDIS) is a significant financial commitment. It’s not as simple as “Build it and they will come to bring you 12-20% return.” With vacancy rates between 25% and 30%, a strategic, participant-focused approach is essential for ensuring your investment is a success. Here’s what you need to know to achieve financial independence, make choices in retirement, and leave a lasting legacy through your property portfolio.

Location, Location, Location

While it might seem that stunning locations would attract tenants, proximity to essential services and facilities is far more critical. Participants need easy access to healthcare, shopping, public transport, and other support services. If your property isn’t conveniently located, it will struggle to attract and retain tenants.

Master the SDA Classifications

SDA properties are categorized into four main classifications, each with distinct design requirements:

  • Improved Liveability
  • Fully Accessible
  • Robust
  • High Physical Support

Getting the design right for these classifications is crucial. For example, in a High Physical Support dwelling, bedrooms must have direct access to an ensuite that accommodates a hoist system, allowing seamless movement from bed to toilet to shower. Half-measures simply won’t cut it.

Person-Centered Design: The Key to Success

High vacancy rates are often the result of properties that don’t meet the specific needs of their intended occupants. A person-centered design focus is imperative. This means understanding and incorporating the unique requirements of your participants into the property’s design from the outset.

Secure Your Tenants First

The cornerstone of a successful SDA investment is securing tenants before you start building. Without tenants, your investment has no purpose or profit. Engage with potential participants early on to ensure there is demand for your specific type of SDA property in your chosen location. This proactive approach will save you time, money, and stress in the long run.

The Importance of the Right Provider and Contacts

Choosing the right builder, consultants and providers is crucial. At Property Friends, we leverage our extensive network and industry experience to connect you with reputable professionals who have a proven track record in the SDA sector. Strong industry contacts can provide invaluable insights and support throughout your investment journey.  All of this whilst still providing choice and control for the participant.

Understand the Costs and Avoid Hidden Traps

SDA properties come with significant costs, both upfront and ongoing. From construction expenses to maintenance and operational costs, it’s essential to understand the full financial picture. Unexpected costs can quickly erode profits, so thorough due diligence is a must.  Ensure to understand the full picture of how your returns are going to be impacted.
At Property Friends, we ensure complete transparency and help you navigate these complexities

Lessons Learned from Experience

Over the past six years, many investors, including ourselves, have learned that success in SDA investment requires meticulous planning and execution. Investing in the right design, location, and professional support is crucial. Mistakes can be costly, and there often isn’t a second chance to get things right.

Want to know more?

Are you ready to take the next step towards building a successful SDA property portfolio? Don’t let uncertainty and lack of time hold you back. Book a discovery call with Property Friends today. We are standing by  to igguide you to the right investment , provide you with the training and resources you need, and mitigate the risks involved in property investment.

Contact us now to schedule your discovery call and start your journey towards financial independence and long-term success with Property Friends.

Remember, Property Friends is your trusted partner in achieving your financial goals through property investment. We put your interests first and are committed to helping you build financial independence, choices in retirement or leaving a legacy.

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