Responsible investing is on the rise, particularly amongst the socially conscious millennial demographic – but how does an ethical investor balance their aspirations to invest in real assets with their desire to serve the community? The answer could lie in Specialist Disability Accommodation (SDA) property investment.
If you’ve never heard of SDA property investment, then it excites us to be able to introduce you to such a wonderfully fulfilling, socially-minded investment opportunity. Not only are you investing in direct property assets, but you’re also handing an Australian living with disability, a home specially designed around their needs and specifications. Keep reading to find out how SDA property investment can not only satisfy your drive for ethical investment, but also provide a government-backed return of up to 14% for the next twenty years!
What is an SDA Property?
Specialist Disability Accommodation is one of the ground-breaking initiatives to come out of the Government’s National Disability Insurance Scheme (NDIS), introduced in 2013. SDA properties are a range of housing designed for people with extreme functional impairment or very high needs.
There is currently a critical shortage of homes available for Australians living with disability. A specialist disability accommodation house doesn’t just provide temporary residence for its tenants, but often gives them a forever home, specially designed around their unique needs and requirements.
SDA properties are built across four design categories:
– Improved Liveability
– Fully Accessible
– High Physical Support
What makes SDA an ethical investment property choice?
The benevolence of helping solve a social crisis and benefit the community for years to come means SDA housing could be an ideal investment choice for those who don’t want to compromise their ethics or financial returns. Providing an Australian living with disability a purpose-built or retrofitted home that enables them to thrive is what sets apart SDA properties from standard residential investment properties.
What are the benefits of SDA investment?
Aside from the obvious social outcomes, investing in an SDA property comes with some unprecedented financial outcomes:
– Fixed monthly income
– 20-year rental guarantee
The Government has pledged a staggering $700 million for 20 years to fund the builds for SDA properties in an effort to encourage private sector investment. The rental subsidy accounting for part of the NDIS funding for SDA housing, investor returns have been in excess of 10% per annum for the majority of investors.
What is the first step to investing in an SDA property?
When considering investing in SDA property, it’s essential to speak to an expert who knows the ins and outs of SDAs.
Because of the unprecedented nature of the Australian Government’s offer and the unique designs of these houses, regular mortgage providers usually undervalue the homes and don’t properly account for the higher rental return. This is why it’s critical to use an NDIS Loans Expert; they can help you maximise your borrowing power and structure your loans so they’re cost and tax-effective.
If you are interested in learning more about investing in an NDIS SDA property, don’t hesitate to get in touch with us.