08 Mar 2023
Special Disability Accommodation (SDA) properties are specifically designed and built to meet the needs of people with disabilities, and are funded by the National Disability Insurance Scheme (NDIS) in Australia. Investment in NDIS SDA properties can have both pros and cons, including:
- High demand: There is a growing demand for SDA properties as more people with disabilities become eligible for NDIS funding. This can provide a stable and potentially profitable rental income for investors.
- Tax benefits: SDA properties may be eligible for tax concessions and deductions, such as accelerated depreciation, which can provide additional financial benefits for investors.
- Social impact: Investing in SDA properties can have a positive social impact by providing safe and accessible accommodation for people with disabilities.
- Complex regulations: SDA properties are subject to specific design and construction standards, and compliance with these standards can be complex and time-consuming.
- Limited market: The market for SDA properties is relatively small and specialised, and finding suitable tenants can be challenging.
- Higher costs: SDA properties can be more expensive to construct or modify than traditional properties, which can be a significant financial burden for investors.
- Risk of changes in funding: The NDIS funding for SDA properties may change in the future, which can affect the financial viability of an investment.
It is important to consider your specific financial situation and goals before deciding to invest in NDIS SDA properties, and to seek professional advice from a financial advisor, real estate agent, or NDIS-approved property investment advisor.