SDA Housing & NDIS Housing FAQs

NDIS PROPERTY AUSTRALIA PTY LTD (NPA) is an ‘end to end’ solutions service working with Investors, Builders, Developers, NDIS Providers, Support Coordinators, and Participants, directly and indirectly, to collaborate with other suppliers in a supply chain to deliver as many new SDA compliant homes as possible to assist Providers in helping their Participants with “choice & control” in how they live their lives.

The funding for Specialist Disability Accommodation is to provide an investor with an above-average rental income for putting their hand up to provide SDA accommodation. If a disabled person is assessed as requiring Specialist Disability Accommodation, funding will be included in their NDIS plan to cover any disability-related housing costs that are above the ordinary costs of housing for them and their support coordinator.

A person ceases to be a participant in the NDIS when the person enters a residential care service on a permanent basis after the person turns 65 years of age.

From 2022, there will be $30 billion annually provided by the NDIA for disabled Australians to access through their NDIS plans.

SDA stands for ‘Specialised Disability Accommodation’ and is the 'bricks and mortar' component under the NDIS for people with extreme functional impairment and/or very high support needs who require specialist housing solutions. SDA funding ensures they are able live independently and also receive support they require whilst at home in specially designed or adapted homes to help deliver their support needs.

All SDA providers must be registered with the NDIS Quality and Safeguards Commission.

An SDA provider may or may not own the dwelling and may or may not include:

• Private landlords
• Family members of people with disability
• Organisations (not-for-profit or for-profit)

An SDA provider will receive funding from the NDIA and can also charge controlled rent directly from each resident. The NDIA payment is a contribution to the cost of capital and a contribution to the associated business activities and costs relevant to the delivery of SDA: for example, property maintenance and vacancy procedures.

SDA payments are made by the NDIS to SDA providers for the cost of housing a person with an extreme functional impairment or very high support needs. The payment is for the actual property ('bricks and mortar') and is paid in addition to other supports in the person's NDIS plan.

To submit an application to the NDIS for SDA funding, a support coordinator and other AHPs (allied health professionals) will need to undertake an assessment and put together a housing plan. If you do not have funding for this application, you will need to request a plan review.

Supported Independent Living (SIL) refers to daily personalised supports. The delivery of SDA and the delivery of SIL are separate under the NDIS. A provider may deliver both supports to the same individual with stringent conflict of interest policies and practices in place.

SDA and SIL providers will have a close working relationship, with roles and responsibilities established through a robust collaboration agreement. There may be instances where more than one SIL provider is operating in a single SDA dwelling.

Supported independent living is the NDIS funding that provides supports to people with disability to help them live as independently as possible. SIL funding is typically for people who need 24/7 support while living in a shared home. It exists to cover the cost of the support staff in the house.

Supported Independent Living (SIL) is the support or supervision of daily tasks to live independently. Supported Disability Accommodation (SDA), on the other hand, is for people with disability who have severe functional impairment or highly complex support needs that require specialist housing alternatives.

Yes. The SDA funding under the NDIS is a legislated commitment of Australia’s Commonwealth, State, and Territory governments, set out in the NDIS SDA Rules (2-18) under the NDIS Act 2013. 

This legislation provides the foundation for the government’s long-term and firm commitment to SDA funding under the NDIS. Beyond the legislative commitment, SDA funding enables eligible participants to achieve better outcomes while representing value for money for the NDIS saving the government and taxpayers a lot of money otherwise spent on accommodating the applicants themselves.

The NDIS has introduced the SDA funding scheme to build new accessible housing for up to 52,000 Australians with a disability (est. figure for 2030). Housing is delivered through an ongoing subsidy for people with a disability to access housing. The SDA payments drive the market-driven model where providers create and maintain housing for people with a disability across Australia with an annual budget of $700 million for SDA payments.

The SDA policy is an ambitious initiative requiring $5Bn to build housing. The government cannot achieve this and thus launched the $700M a year SDA Scheme to create an investor and user-driven market. Empowering people with disability to decide where they live and who they live with. The package of support includes annual funding to pay for the cost of their housing where the participant has a separate amount in their package to pay for their attendant care support needs to live independently in our communities. It is anticipated that the SDA pricing and framework will continue for 20 years, after which your property will revert to the general market.

The figures below are gross estimates based on ‘House’ building type, and may vary slightly based on the location factor:

• 2 x High Physical Support $89,984 + RRC $19,523 (Total p/a approx. $109,508)

• 3 x High Physical Support $124,520 + RRC $29,286 (Total p/a approx. $153,806)

• 2 x Robust $80,298 + RRC $19,523 (Total p/a approx. $99,822)

• 3 x Robust $100,609 + RRC $29,286 (Total p/a approx. $129,895)

• 2 x Fully Accessible $68,628 + RRC $19,523 (Total p/a approx. $88,152)

• 3 x Fully Accessible $85,560 + RRC $29,286 (Total p/a approx. $114,846)

• 2 x Improved Livability $49,950 + RRC $19,523 (Total p/a approx. $69,474)

• 3 x Improved Livability $58,204 + RRC $29,286 (Total p/a approx. $87,489)

Research demonstrates that for the government to accommodate one person with disability and provide them with services at the same time, it costs both government and taxpayers around $1M per annum. And for a person who ends up in a hospital disabled, whilst recovering and waiting on suitable accommodation, this person costs the government and taxpayers around $1,500 per day to accommodate them in the hospital.

If this research is accurate or even half accurate, by you the investor receiving circa $20,000 to $60,000 per participant per year you are saving both government and taxpayer an incredible amount of money they have to spend otherwise. So yes, it is financially absolutely viable. If it costs $1M to accommodate one applicant in the system, this means a savings of ~$950,000 per annum per Participant, therefore this is a significant saving for the Government.

• Around 4300 new SDA places have been created since 2016.
• As of September 2021, there were 1,744 new dwellings in the pipeline nationally.
• Of these new dwellings in the pipeline, 67% are being built to ‘High Physical Support’ level.
• Over the next eight years (2022-2030), there will be up to 36,000 new or refurbished SDA places needed around Australia.

NDIS homes are built to a very high standard. They do not present as a hostel or over crowded old style disability housing. These homes are built and designed above a spec home, built to accommodate and last.

We will refer clients to an appropriate Housing Provider to assist, however, each investor is free to engage whichever Housing Provider they wish in order to procure participants for the home.

An SDA Provider, once engaged, will be the specialist property management company that works with NDIS Service Providers in assisting their NDIS clients to apply for and be placed in suitable Specialist Disability Accommodation. This process starts as soon as the finance has been approved and prior to commencement of build, with the intention of having the property occupied as soon as possible after the property is completed.

Currently, we have NDIS SDA homes available throughout the country. Our properties are spread between regional and more central areas due to the demand for disability housing. We are taking a cautious approach to housing placement, fully aware that we don’t want to see an oversupply of property in any area. Once we have placed tenants in our current supply of properties, we will then continue to work with Service providers, to create an ongoing balance between supply and demand.

The land and location must meet SDA requirements, so not just any block in any location will be suitable. SDA funding is running nationally, and SDA Homes can be built Australia wide. The location needs to be close to amenities such as health care, employment hubs and transport. The land must have no more than a 7-degree slope to the road to be approved.

Compliance is checked at several stages throughout the process.

1. At the plan stage

Before committing to the land and  build contracts, the package goes in for initial certification with the SDA certifiers. 

This then goes into local council for Building approval like a normal house build.

2. At the frame stage

The certifier will come to the site to ensure that the approved plan is matched. 

3. At completion. 

Final certification will happen when the home is at Practical Completion.

This process ensures that the investor will be able to receive SDA funding.

Without certification the house will never be able to have NDIS/SDA tenants and therefore will not receive the high returns.

What is the time frame to build a SDA Home?

It used to be 6 months, but since 2021, we now see 9 to 12 months as the norm for construction. When taking into account council delays, supply chain issues, construction worker shortages, the Christmas period and weather delays, a 14 to 16 month project turn around time is to be expected, from day one commitment of an EOI, if working with titled land.

• 14 to 16 months for titled land
• 18 to 20 months for untitled land
• This always depends on the location

There are different builders building NDIS SDA Homes and there is no official building standard. A good builder will provide a quality home that is compliant with current NDIS SDA built to Livable Housing Australia (LHA) standards. It takes around 10-12 months to build an NDIS SDA-approved home (depending on in which State and weather).

There is a 12-month maintenance period on build so any maintenance issues or defects that come to light within this period are the responsibility of the builder to fix and repair, at no additional cost to you. Fixtures and fittings are covered by the manufacturer's warranty applicable to each item e.g. Oven and cooktop.

Yes, you can, but if borrowing only as a single contract. This would normally mean you would need to purchase the property in cash from your SMSF. Only single contract purchases can be purchased in a SMSF, not a 2-part contract purchase.

Click here for more information on purchasing a NDIS property with your SMSF.

A Family Trust is worth considering for holding this type of investment due to its tax benefits, but we suggest you speak to your Accountant or Financial Advisor for advice. We can refer you to a planner, accountant or broker to assist.

A SDA home must be managed by a property manager that is registered SDA service provider under the NDIS. There are very strict practices that have to be adhered to when working with people in the disability sector and only an authorised SDA provider can manage your property.

The properties are leased directly to the Participant so that SIL and other Service Providers can continue their high-care services without the organisation worrying about leasing or property management requirements.

With a non NDIS Home, you work with a Local Real Estate Agent to help find you a suitable tenant. You sign a lease management agreement with the Agent so they can then find a tenant and then sign a lease agreement with the Tenant on your behalf. With an NDIS property it is slightly different. A SDA Provider will hold a Head Lease, which enables them to sublet the property to suitable SDA approved Participants (tenants).

Currently in QLD there is a bond payable when letting an NDIS SDA property, although Queensland has yet to incorporate specific legislation surrounding SDA with the RTA. With multiple tenants, at present, all are handled under a rooming accommodations agreement where all are charged separately per room and not as part of a single lease arrangement. The bond fee will be the equivalent of four weeks rent for each participant per room (which is the participant contribution amount only - the NDIS payment is not factored for bond calculation).

Payments for NDIS/SDA property are paid differently to that of a non NDIS property. Your rental payments will be paid to you from SDAMA at the end of each calendar month. Each Tenant’s payment is made up of 3 parts;

1. Fair rent contribution: (25% of base disability supplement) paid fortnightly by the participant (tenant);

2. 100% Commonwealth Rent Assistance paid fortnightly by the participant (tenant);

3. NDIS SDA Payment (Refer to the NDIS SDA Schedule: paid quarterly in arrears).

It would be unlikely that a complete furniture package would be required, as most Tenants would have their own furniture for their bedrooms, but we would suggest there might be some furniture required for the shared spaces. Each home would have different requirements, but we believe an allowance of $5,000 - $10,000 for items like a fridge, washing machine, table and chairs and lounge would be wise.

It is generally understood that Tenant’s will look after their own maintenance of the home, but it is suggested that a Landlord look after lawn mowing and basic garden maintenance. The Landlord is responsible for all other normal maintenance as per any other investment property. The Tenants would be responsible for damage caused to the property.

The Tenants are responsible, but it is advised that the Landlord connects utilities such as NBN and electricity in their own name and bill the ongoing costs back to the Tenant’s, as it will be hard to get connections made to the home with 2 or 3 separate Tenants.

Unlike a non-NDIS-SDA style home, there are many factors at play when looking for and securing an NDIS-SDA-approved Tenant. Location of the Property, suitability of the style of property in that area, demand for that style of home with a suitable tenant and current Government “red tape” are just some of the factors that come into play.  The process of looking for a Tenant starts before the build has even started. We work closely with Service Providers, most of which have Participants on file, but there can be many factors that can delay this process also, as they may not yet have SDA funding approval on their Care Plans, or they may need to move out of current accommodation which may take time to transition across. There are still some challenges with the current NDIS structure and speed of delivery, but we are doing our best to push as hard as we can to get a tenant in every one of our homes.

Initial leases will be for 12 - 24 months where possible, but once locked in, most tenants will stay for many years to come.

Like any investment property, rentals are certainly not guaranteed, and neither is 100% occupancy. However, we have found that based on research undertaken, many disabled SDA residents want to “stay for life” when they are in appropriate accommodation, which is why we refer to these homes as their “Forever Home”.

Like all ongoing investment property ownership, there is always the risk of losing a Tenant, although research has shown that once someone with a disability finds a home they are happy with, they don’t ever want to move, although once your property has been enrolled and tenanted initially, the NDIS has allowances for vacancy payments (NDIS SDA portion only). The amounts covered are for up to 60 days for properties with 2 or 3 participant rooms, and for up to 90 days for properties with 4 or 5 participant rooms.

Yes, the building industry is going through a major challenge at the moment. Raw materials such as timber and steel are in short supply as well as workers for construction sites. This is causing delays in the completion of houses. Construction times which used to take 4-6 months, but are now taking 7-10 months.

The cost of building NDIS SDA homes has been steadily increasing during the second quarter of 2021. Timber has gone up by 18%. The cost of builds has been going up 10-15 % and the margin for builders has reduced significantly. The biggest problem is that contracts signed by investors has locked in prices, but the construction of the home will occur over the next year, and increasing costs will cause problems with builders not making money, with building costs going up even after contracts have been signed.

In South East Queensland, recent internal migration of people from VIC and NSW has resulted in significant population growth - with 10s of thousands moving to South East Queensland in the past 12 months, partly due to Covid.  

Additionally, more than 200,000 expats returned from overseas since the beginning of the Covid pandemic, buying up property, significantly impacting the available land supply.

In 2020, the government's Home Builder Grant resulted in lots of First Home Buyers buying a lot of land, which combined with low interest rates resulting in a lack of land supply in the marketplace. In Victoria, land is in very short supply and there is a delay of 1-2 years for land titles. In Brisbane we're now seeing delays of 6 months or more for land titles.

High demand for house and land packages is creating a fast paced market with new land releases selling out in under a week. Developers now require pre-approval letters or a broker qualification letter with an EOI. In some cases, larger deposits of $5,000 are now required.

With the influx of owner occupiers in the market, developers are less interested in selling to investors and are favouring direct sales. It is therefore vital to act fast and to always complete everything on the EOI forms to ensure you don’t miss out.

We have House & Land packages as well as Units and Villas available or coming soon in Brisbane, Melbourne, and Perth and we have packages also throughout Queensland in regional centres like Toowoomba, Cairns, Mackay, Hervey Bay and Townsville. 

Land supply in Brisbane, Ipswich, and the Gold Coast is very limited. Neither land developers, nor councils can keep up with approvals of land sites in South East Queensland and this imbalance of supply and demand of land will be the case for the next 2 years or so.

SMSF investments in NDIS seems to be a hot topic currently. We are getting a lot of buyers with large amounts in super exploring the idea of NDIS.  Yes, we can assist. We can refer clients to SMSF funders who will do one-part contracts for House & Land packages and we help facilitate this as a property advisor only. We recommend SMSF investors have at least 33% of the House & Land contract price, plus additional costs such as stamp duty and holding costs, etc.  This would amount to over $250,000 as an SMSF balance minimum, ideally at least $350,000. Please consult your accountant for further advice, as we are not financial advisors.

Click here for more information on purchasing an NDIS property with your SMSF.

Participant led strategy basically refers to packages put together by providers and builders which have participants (as tenants) ready for the particular house in the particular area for the package presented. This is the safest way for investors to move forward with an NDIS investment as the provider and tenants are already in place. All that needs to then be done is construction of the house.

This is rare as there are so many buyers who want to purchase a partipant led package and most of the time, investors would need to follow providers into certain areas where they have endorsed the location as a high demand area for participants with SDA funding. This is a provider led strategy.

No. We don’t have any vested interest in any developments or properties we recommend to clients. We are not builders or developers. We are effectively a builder broker and investors’ agency. As an independent advisory business, we can assist you along your NDIS property journey and help you find the best properties to match your goals and financial capacity.

Again, no. We are at arm’s length from any property source, and that way we can select the best products, suppliers, and services for you at any given time. Ultimately we source properties, but we also give building, development, and investment advice in NDIS property. 

No. Whilst our supply and demand research will point us in certain directions, there is no fixed connection or tie to any particular area. However, we do have professional opinions as to where an astute NDIS investor should get into, and this is based solely on demand and land availability as well as opportunities that arise. If there is a property type or a property area that fits your goals, criteria, and needs then we will assist and source it.

That’s a very good question, and one that is very commonly pondered! The key is to look at who is supplying you with the information. If it is someone who has a vested interest in selling you their product or service they are very rarely impartial or balanced. We however are completely independent and only offer advice that is specific to your unique situation. We are not and never will be a “one size fits all” organisation.

Let’s not beat around the bush, It can be pretty complicated and daunting – especially the first time. There are also many people who have lost money by rushing into the market unprepared. That is why we exist. Our job is to work with you in putting together your team of advisers who have your best interests at heart! Our strong suggestion would be to give us a call or drop us an email and we can have a relaxed and informal chat about where to go from here. It is an exciting and rewarding journey. You do however have to “bite the bullet” at some stage and start!

This is a valid and justifiable concern. Whether you come to us directly or from another business, we will maintain a level of professionalism to ensure you are comfortable with the entire process. We act as the “buffer” between the salespeople and you. We only go to the market when we know what we are looking for and therefore we are the ones who are in control. Moreover, the approach that these organisations will take – with us as your adviser involved every step of the way – is very different!

Each of the homes that NPA builds are modelled to improve the comfort and privacy of both Carers and Participants, whilst improving safety and functionality within the home. This allows Service Providers to better support and care for their Participants, whilst ensuring the comfort and convenience of team members who deliver the services and care.

Most of the time, yes. NPA provides tailored accommodation solutions that are unique to each Participants disability and care requirements. We emphasize the word “most” because one must remember that the Participant isn’t going to sign a “life long lease” and that they may move on to another property or location after their lease ends, like any rental property. The number of participants or types of participants that will live in the home depends on the future needs of future participants, which may change.

If you are considering renovating an existing property, you need to consider the following points:

• The property needs to have been issued a certificate of occupancy on or after April 1st, 2016. 
• The refurbishment must meet the minimum requirements for the selected Design Category and
• The cost to refurbish or renovate the home must meet the minimum requirements in the NDIS’ Appendix F—Minimum Refurbishment Costs for New Builds
• The required minimum costs to refurbish are high, making this option generally not financially viable.

The NDIS recognize that most people who need SIL are able to live in an ordinary home that is already available and does not need modification.  Most people who will have SIL approved as a reasonable and necessary support in their plan will not need SDA.

A 20-year projection model released by NDIS steward, the National Disability Insurance Agency (NDIA), estimates that by 2042, at an average growth of 2.4 per cent per annum, 36,684 SDA homes will be required.

The greatest demand for disability housing is in Melbourne’s West (1,464), the city’s South East (1,378), North East (1,107), Inner (829) and Outer East (806), and Sydney’s Parramatta (786), Inner South West (734), Blacktown (677) and Outer South West (650).

Any government funding is attached to the NDIS participant, and not the property itself. Investors should be aware that investment schemes, generally, are not government-backed and are run independently from the government.

Misinformation suggesting SDA is easy, low risk and offers high returns is an overarching issue, and while investors must examine their motivation and commitment, they must also understand vacancy rates and demand to make their investments worthwhile.

When choosing an SDA provider, consider the following factors:

1. Location: Choose a provider with properties in a convenient location for you or the person you're supporting.

2. Support Services: Assess the range of support services offered by the provider, including health care, social activities, and daily living assistance.

3. Quality and Accessibility: Evaluate the quality of the housing and ensure it meets accessibility standards for your needs.

4. Reviews and Reputation: Research the provider's reputation and read reviews from other clients or families.

5. Flexibility and Customization: Look for providers offering flexibility and customization to meet individual needs.