How much does Specialised Disability Accommodation cost under NDIS?

As a disabled person living in Australia, you may be looking for a specialised disability accommodation (SDA) to help you live independently. An SDA is a type of house that is designed for people who need support services or are disabled. This is a special type of house that makes it easier for you to access professional support services. SDA is usually offered as a programme through the National Disability Insurance Scheme (NDIS) where eligible participants access various forms of affordable disability housing units according to their special needs. 

Paying for your SDA housing under the NDIS 

If you need to access this special house for people who need intensive support services, it is important to note the costs involved. This post aims to explicitly explain SDA costs Australia. Under the NDIS, as a participant in this programme, you are not allowed to pay for any SDA facility. But this does not mean that you will not be paying anything as there are certain costs involved. People who apply for SDAs under the NDIS are not expected to pay directly for the facilities, However, they will be charged rental costs which is usually capped at 25% of their Disability Support Pension. The amount of rent to be paid depends on the NDIS pricing for SDA housing units. Apart from rental costs, people who apply for SDAs will have be responsible for their everyday expenses like personal care transportation, and food. In some SDA properties, residents could pay for additional services such as leisure activities, medical attention, gym, transportation, meals, and so on. Then again, there are participants contributions that applies in some cases which could be government funding, compensation payments, rent payments, and so on. 

Calculating the total costs of Specialised Disability Accommodation under the NDIS 

If you are not looking to be a participant, you may be looking to invest in the SDA programme under the NDIS. This business model is very lucrative and people have been making profits. If you invest in this programme, you will smile all the way to the bank. It is sustainable business model that allows you to maximize your return on investments within such a short time. If you are looking to invest in this programme, you should be looking at several factors. These includes:

The location of the SDA property

 You will have to choose a particular location to have your SDA. Where do you want this property? It is in a remote or regional area? You can also choose a metropolitan part of any city in Australia too. 

The SDA category of the property 

Under the NDIS, investors can choose to invest in this programme by opting for one or more SDA categories. Available categories include robust, medium functioning, high cognitive support, and high physical support. 

Construction requirements

SDAs come with different features and designs. Depending on your chosen segment of the market, you may have to include certain features in the house. This depends on the disability or the support needs of the participants that you are looking to have in the SDA facility. Depending on the features of the SDA, the requirements for design and construction tend to vary from one property to another. 

Investing in SDA: What is the cost involved?

For investors willing to make money through the SDA scheme, they can easily invest in the programme. However, they will need to know how much it costs to be an investor in the scheme. This has to do with the category of the property. It is as follows:

1. High Physical support

For this property, the capital cost for investors is between $520,000 and $720,000 for a new build. The operating cost for this category of SDA is between $258,000 and $425,000 per annum.

2. High Cognitive support

For this property, the capital cost for investors is between $420,000 and $620,000 for a new build. The operating cost for this category of SDA is between $195,000 and $325,000 per annum.

3. Medium functioning

For this property, the capital cost for investors is between $320,000 and $520,000 for a new build. The operating cost for this category of SDA is between $145,000 and $235,000 per annum.

4. Robust category

For this property, the capital cost for investors is between $450,000 and $650,000 for a new build. The operating cost for this category of SDA is between $220,000 and $360,000 per annum.

How much it costs to design and build an SDA under the NDIS 

If you are investing on an SDA under the NDIS, you should know how much it costs to design and build the property. The average cost of designing and building a square meter of an SDA property is between $2,500 and $4,000. Using this logic, the average cost it takes to construct an SDA with 3 bedrooms is between $450,000 and $700,000. 

The cost of operating an SDA 

If you are an investor, you should know how much it costs to operate an SDA. This is because there are several factors at play when it comes to owning and operating an SDA. If you want to invest in one, you will have to consider the costs it takes to operate one. These include the cost of staffing which involves a 24/7 support service provision. In this case, you will have to spend between $150,000 and $300,000 every year. You will have to also consider the cost of utilities such as gas, water, and electricity which can range from anything between $10,000 and $20,000 every year. When operating your SDA, you will also have to think about repairs and maintenance which can cost between $5,000 and $10,000 every year. Lastly, there is the cost of administration and other costs like overheads which can cost between $20,000 and $50,000 every year. 

Current rates for SDA funding 

As a disabled person or somebody that requires a high level of support, you can easily have access to SDA funding. This funding is used to mean the available financial aid which the NDIS gives to applicants. With this funding, eligible people that need support services can find an appropriate SDA that suits their needs. The SDA funding breakdown is as follows: 

• For the high cognitive support category, the NDIS SDA funding rate is between $195,000 and $325,000 per annum. 
• For the medium functioning category, the NDIS SDA funding rate is between $145,000 and $235,000 per annum. 
• For the robust category, the NDIS SDA funding rate is between $258,000 and $425,000 per annum. 
• For the high physical support category, the NDIS SDA funding rate is between $258,000 and $425,000 per annum. 

Participants who are eligible can easily access NDIS financial support for SDA housing. These are the SDA funding rates that are eligible for participants that are willing to apply for the programme under the NDIS. To qualify for the scheme, it is important for the participants to meet the following requirements:

• They should meet all eligibility criteria as set by the NDIS.
• They should be in need of very high-level care and support services.
• They should have an SDA plan that has been approved by the NDIS. 

Why investors need to consider investing in Specialised Disability Accommodation (SDA): The benefits 

For many years, the government of Australia have encouraged investors to look into investing into the SDA programme under the NDIS. This is because when they invest in the SDAs, they are able to enjoy many benefits such as:

• They get high returns because the SDA funding will help provide them a stable source of income.
• SDAs are available under the NDIS for investors for long-term lease periods. This means that investors can get lease periods of between 20 and 25 years which means that they are guaranteed stable rental income throughout the validity of the agreement. 
• People who invest in SDAs can easily contribute to helping disabled people access support systems that enhance their lifestyles. 
• The investment comes with the potential to get taxes offset as well as depreciation benefits.
• Investors will be able to get ongoing funding for them to be able to offset operational costs. 
• Investors will receive upfront funding for them to purchase an SDA or build a new house. 

Available investment opportunities for investors 

The SDA has several opportunities that are available for people looking to invest in its several property categories. These include:

• New builds: Investors can find a suitable location and built custom SDA homes for people with certain disabilities.
• Refurbishments and renovations: This means that investors can also choose to upgrade any existing properties according to the accepted standards of the SDA.
• Property acquisitions: Investors can also choose to buy existing properties that fully comply with the requirements of the SDA. 

It is important for investors to meet certain criteria before they can proceed to purchase any properties within these categories. Some of the requirements in this regard means that they will have to:

• Make sure that they have registered with the NDIA
• Meet all the standards required of SDA providers. 
• Be ready to comply with all the funding and pricing conditions of the NDIS.