How to Buy Your Own SDA Property with NDIS Funds

The National Disability Insurance Scheme (NDIS) offers people with disabilities more control over their housing and support, providing individualized options not previously available. One such option is Specialist Disability Accommodation (SDA), which supports people with complex or high-level physical disabilities to access housing. The SDA payment is held by the NDIA on behalf of the participant and is included in eligible participants' NDIS plans. The value of the payment depends on a person's needs and the dwelling they choose to live in.

Considerations for Using SDA Funding to Buy a Home

Before making the decision to use SDA funding for home ownership, it is important to consider the following factors.

• Eligibility for SDA funding: Ensure that you meet the criteria (How to apply for SDA funding?) for receiving SDA funding as an NDIS participant.
• Down Payment or Deposit: Consider if you have the necessary funds saved for a down payment.
• Loan Repayments: The amount of SDA funding in your NDIS plan will vary based on the type of SDA category you are funded for, the type of building, the level of support you require, and other factors. Determine if your SDA funding will be enough to cover loan repayments by speaking with a financial institution.
• Compliance with SDA Design Rules: Ensure that the desired property meets the NDIS' strict regulations for SDA properties. If the property does not meet the SDA Design Rules, it cannot be funded using SDA.
• Becoming an SDA Provider: Decide if you will become your own SDA provider or engage an external provider to manage the property.

Being your own SDA provider allows for more control over the care and management of the SDA property. Plus, there is a financial benefit of receiving the SDA-provider’s fee payable by the government as a part of your SDA funding in addition to the rent.

However, this option can also be complex and time-consuming, requiring knowledge of NDIS regulations and standards, NDIS plan management, property management, and providing maintenance and upkeep of your SDA property. It is important to research the responsibilities involved in being a registered SDA provider before deciding.

Using an external SDA provider, on the other hand, has the advantage of freeing up your time and energy.  A good provider has the expertise and experience to communicate with NDIS, ensuring all the paperwork is done correctly and on time. They will manage your property. They have connections to SIL providers (or, care providers), and other stakeholders, which participants can leverage. They will advocate for the participants and their support needs. They will manage the SDA payments coming from the government for you and do all the paperwork related to these payments.

While anyone can become a registered SDA provider for their own SDA property, we encourage you to reach out to potential SDA providers to learn more about their services, the locations they operate in, and what sets them apart in the industry.

Steps in Buying an SDA Property

Once you have considered these factors and meet the eligibility criteria, you can begin the process of buying an SDA property:

• Get SDA funding: Get your SDA funding approved and understand the level of funding you will receive. Specify your desired living arrangement (such as an apartment or a house, sharing or not sharing with other participants) when applying for SDA funding.
• Save a deposit: Participants can save a deposit through their own work or with help from family.
• Find an eligible lender: Look for a lender who provides NDIS loans. Note, that not all banks provide NDIS loans. Check the criteria the lender requires you need to meet to apply for and receive the loan.
• Choose a provider: Decide if you will become your own SDA provider or engage an external provider. Spend time looking for a reputable provider if you choose to engage an external SDA provider.
• Find a suitable property: Contact a real estate agent specialising in SDA properties to look for an SDA property that meets your needs, including the SDA design standards. Choose to build your home or buy an already-built SDA property.
• Make an offer: Once you have found a property you like, make an offer, or submit an expression of interest.
• Review and sign the contract: Review the contract with your solicitor before signing the contract.
• Follow the construction process of your property and ensure to ask for regular updates from the builder. Or, If you bought an already-built SDA property, organise to move in.
• Engage government SDA payments to start receiving them: The SDA provider will handle the paperwork to engage government payments on your behalf. This is known as the Reasonable Rent Contributions. It's important to note that the rent covers the tenancy, but not the in-home living expenses such as food and groceries.

In conclusion, buying an SDA property with NDIS funds can be a feasible option for some NDIS participants, but it is important to consider all factors and eligibility criteria before making a decision. The most crucial for you, as a participant is to secure SDA funding and have a deposit for the loan as these are the minimum requirements for buying an SDA property.

Listen to Our Podcast:  "How Do Participants Buy Their Own SDA Property?"

Are you an NDIS participant with SDA funding and looking to own your own SDA home? Debbie and Grace from the NDIS Property Podcast sit down and discuss the process of buying an SDA property for yourself as a participant. They give a brief rundown and advice for those who may be considering this option.

Listen to our Podcast: SDA Housing Podcast, Episode 88

Don't miss out on this valuable information. If you are considering buying an SDA property for yourself, reach out to us for advice. Our team is dedicated to helping as many participants buy their own property as possible, and we will do our best to provide resources (Summer Foundation fact sheet) and connections. Contact us on 1300 254 397 for more information.