How to maximize return on investment with Specialised Disability Accommodation

The National Disability Insurance Scheme (NDIS) is a popular initiative that caters to the disabled people in Australia. One of the key elements of this scheme is the Specialised Disability Accommodation (SDA). This is a programme that is used to offer accessible housing facilities for people who need private care or have a high level of disability/impairment. In recent years, there has been an increase in the demand for SDA housing. This has led to more investors looking to enter the market and make a lot of money. Before now, people invested in the business and made a lot of money. This showed that NDIS SDA investment is a good way to make good money in a market that continues to grow and expand. 

Investing in the specialized disability accommodation market 

It is clear now that there is considerable SDA financial returns for people who invest in this business. However, if you want to maximize your return on investment with the Specialised Disability Accommodation (SDA) market, you will need to understand more than this business model. It is important that you know everything there is to the business including the potential returns on your investment as well as the market regulations. This post will teach you all you need to know about maximizing your return on investment with the SDA program. 

Why do you need to invest in SDA?

Due to the SDA housing affordability, more families are looking to try this option to make sure that their loved ones get all the support and comfort that they really need. Due to this need for premium care and support for this type of disabled people, there is a constant need for decent specialised disability accommodation. The current supply of SDA housing is limited and the NDIS has invited private investors to invest in the market. A look at the statistics of this business show that it is a profitable business model. You want to know why you should invest in the SDA housing market? We have several reasons you would like.

1. There is a high demand for SDA housing

The NDIS has recently estimated that there has been a steady rise in the demand for SDA. This increase went from 20,000 people in June 2022 to about 40,000 people in June 2042. This means that the market has a yearly growth of 2.4% – which is why SDA is such a lucrative business investment. Also, there is one more growing trend in the business model as people who tried out SD group homes now seek to have their own individual SDA houses where they can receive support and care that are personalized to their needs. This people are aware of the long-term benefits of SDA housing and like the idea behind the program. What is more exciting is that their families are willing to choose decent SDA facilities for their loved ones. This is why the need for additional SDA properties continue to increase.

2. Get your income from the government

As an investor in SDA, you will get your payments from the government. This program is financially backed by the NDIS, which means that as an investor, you will get a reliable and continuous income stream. The SDA scheme is supported by the government of Australia and they are willing to pay substantial amount of money to investors who invest in it. The government pays all investors which eradicates the risk of not receiving any payments for your investment. The ability for the government to fulfill its SDA payment obligations continue to make the market a worthwhile investment venture for both new and existing investors.

3. Make a difference in people’s lives

If you invest in SDA, you will see how your efforts will help make a difference in people’s lives. There are over 5 million disabled people in Australia and a recent market survey has shown that the number of people that need special housing facilities is on the increase. There are so many benefits of investing in SDA. Apart from SDA cost-effectiveness, there is the opportunity for you to make a great social impact. This is because you will be able to provide decent housing for disabled people. Disabled people need custom housing facilities that support their needs to function normally. Investing in this business complies with strategies for ethical business investment that combines profitability and social responsibility.

Maximizing your return on investment with Specialised Disability Accommodation: The Secrets of the business 

So, you want to maximize your SDA financial returns? You will need to understand the dynamics of this business model. The market works in a certain and only those who hack this system will make a lot of money on their initial investment. If you want to maximize your ROI, this is how you can go about it:

Know the demand and supply in the SDA market

The SDA business model is relatively new. This means that the market is still at its early stages and there is more demand for houses as many regions remain under-supplied. To make a lot of money from this business, you will need to look for regions where there is a high demand for SDAs. This will help you invest in areas with the greatest need and demand for decent SDA facilities. 

Know all the SDA categories

 Much as Know Your Customer (KYC) is important in the SDA market, the same applies for knowing the available products of the business. There are several SDA properties that are classified according to the level of support that they make available. This means that as an investor, you want to make sure that you are familiar with all of the available SDA categories. This way, you can best understand the property that will help you maximize your return on investment (ROI).

Know the profiles of the participants

Like we mentioned previously, you can never increase your ROI if you do not know your customers. Of course, like many other businesses, KYC is important in the SDA market too. This means that you will have to know the profiles of all your potential tenants. Don’t just look for areas where there is a high need for SDA housing. Rather, be sure that you know the specific preferences and needs of the people that are going to be using your investments. Knowing all about the home users will help you know how to design and modify your SDA properties. Doing this will go a long way in making sure that all the property you invest in will be very appealing to the tenants. In addition, knowing this part of the market will make sure that you are able to invest in SDAs that meet the standards of the NDIS.  

Challenges and risks that you are likely to face when investing in Specialised Disability Accommodation

Just like every other investment, investing in SDAs come with its own challenges and risks. This means that you will have to know how to avoid these barriers if you want to maximize your ROI with SDAs. The challenges and risks include:

Always meet regulatory compliance

In order to be eligible to receive funding from the NDIS, the SDA property will have to meet certain requirements and standards. If investors do not comply with these, it could result to loss of funding or financial penalties. This means that to maximize your ROI with SDAs, as an investor, you will have to be updated on all the laws of the NDIS.

Retaining tenants in your property

In Australia, the current market demand for SDAs is quite high. However, there is a challenge in the market when it comes to finding the right tenants for your investments. It is even more difficult to see a good tenant that you could keep on a long-term basis. If you want to maximize your ROI with SDAs, you will have to work very hard to reduce vacancy rates. The best way to do this is to ensure that all your SDAs are built according to the preferences and requirements of your potential tenants. 

Beware of market saturation

The SDA business model in Australia is relatively a young sector. However, there is a possibility of the market becoming saturated, this is as more investors decide to invest in the market. However, this saturation may not likely happen now and it could take several years before it occurs. Investors can maximize their ROIs with SDAs if they research the market thoroughly before making a decision. This research helps to identify gaps in the market where there is high demand and low supply. To avoid market saturation, you can still research the market area where in the near future, the supply could eventually become higher than the demand. 

Failure to work with professionals

It is very easy to ignore the contributions of professionals as you invest in SDAs. Professionals like property managers, builders, and architects work to ensure that your SDA investments meet requirements at all times. In addition, they also ensure that potential tenants find your properties attractive.