The SDA HOUSING Podcast

EPISODE 271 - Two SDA Trends from 2024

NDIS PROPERTY AUSTRALIA

In this episode, Minh & Ian have a discussion revolving around the shifts in investment focus within the SDA property market over the past 12 months. Investors are moving away from SDA house and land packages being marketed across Australia by "selling agents" due to lack of stock, lack of good SDA product to invest in, and high entry costs specifically to SMSF buyers, which have become a big market over the years. 

There’s a growing trend toward investing in apartments in middle and inner-ring suburbs, and here’s why:

  • Higher yields and quicker availability make completed or nearly completed apartments appealing.
  • Rising construction costs have pushed SDA property entry prices to $1–2 million, while limited desirable stock often requires knockdowns or land redevelopment.

Why are apartments a smart SDA investment?

  • Affordability and convenience: Apartments are closer to services and eliminate risks tied to construction delays or cost overruns.
  • Lower upfront costs: A 10% deposit secures a contract, reducing holding expenses since there are no costs during construction.
  • Safer option: Lower risk of builder insolvency makes apartments more secure.

Capital growth vs. cash flow in SDA

  • Focus on cash flow over capital growth. SDA properties provide consistent CPI-linked income and yields of 9–11%. Their value is income-driven rather than reliant on traditional growth.

Risks of oversupplied SDA areas

  • Avoid oversupplied regions, like Melbourne’s western suburbs, which face tenant shortages and lending challenges. Opportunities exist in undersupplied areas, but careful selection is key.

By choosing the right area and property type, SDA investments can be both lucrative and secure.

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EBOOKS:

www.robustdesign.com.au
www.highphysicalsupport.com.au
www.improvedliveability.com.au
www.fullyaccessible.com.au

GOALS:
It is our goal to see Participants with high-needs disabilities being appropriately housed in accommodation that is right for them. Purpose built homes promote opportunities for social and economic participation, enhance self-determination, and create conditions for Participants to lead vibrant, safe, and independent lives.

NDIS PROPERTY AUSTRALIA:
 Our team conducts in-depth research on Specialist Disability Accommodation (SDA) and provides strategic technical advice. Using advanced feasibility spreadsheets, we help investors estimate annual SDA income, understand construction timelines, and uncover hidden costs. By staying updated on SDA data and pricing, we enable informed decisions and support investment goals. 

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