Investing

Our mission is to build homes fit for purpose, fit for life and fit for living and are a sound investment based on the provisions of the NDIS scheme.

To create affordable homes, we have invested in a range of designs which meet the requirements of Specialist Disability Accommodation and Liveable Housing Australia.

Investing in SDA Properties

When thinking about Special Disability Accommodation (SDA) as an investment the normal rules any investor should apply to any property asset:

  • What is the return on the investment?
  • Has the property been built yet? If not, what is the final price going to be?
  • Is the property in which I am going to invest certified for the purpose to which it is going to be put?
  • Will there be people with the level of support or income to generate a reasonable return on your investment?
  • Will the income from the property be sufficient to service the costs of financing, building, managing and maintaining the property?
  • Will there be the support needed for the people in the house a) be available, and b) continue to be available?

Return on Investment (ROI)

“The holy grail when it comes to ROI for investors is a high yield property in an area with large capital gains (i.e. A home with good rental income in an area that will continue to raise the home’s value). Establishing a steady rental return and low maintenance and management costs will also improve your return on investment numbers.”

Source: Hodges.com.au, How to Calculate Return on Investment in the Rental Property Market

Thus, there are X factors to take into consideration.

  1. What is the cost of the asset?
  2. What is the capital appreciation over the medium and long terms?
  3. What is the net income from the asset?
  4. How secure is the income stream?
  5. Who bears the cost of unoccupied properties?

There is a marked difference between homes built on Greenfield sites in volume and SDA homes;

  1. Homes for people with disability are built to Liveable Housing Australia standards – we generally construct to “Platinum” performance level. Download the standard here.
  2. There are four levels of SDA, each of which requires additional work.
  3. SDA homes are often designed so that residents have their own bathroom and other facilities – we therefore cannot compare say a 4 bedroom house with 2 bathrooms to a 4 bedroom house with 4 bathrooms and separate accommodation for on site support.

Construct Care is applying to become an approved housing provider of Specialist Disability Accommodation (SDA) by the NDIS. We have a range of homes to suit the needs of participants, investors, and service providers. These combine the LHA Platinum Standard with the SDA categories as follows:

Improved Liveability
This type of housing has been designed to improve ‘liveability’ by incorporating a medium level of physical access and enhanced provision for people with sensory, intellectual or cognitive impairment.

Fully Accessible
This type of housing has been designed to incorporate a high level of physical access provision for people with extreme physical impairment.

Robust Design
This type of housing has been designed to incorporate a high level of physical access provision and to be very resilient, reducing the likelihood of reactive maintenance and reducing the risk to the participant and the community;

High Physical Support
This type of housing has been designed to incorporate a high level of physical access provision for people with extreme physical impairment and requiring very high levels of support.

Demographics

SDA investors need to take into account not just the location (city, suburb, estate) and aspect (access, view), but also the factors that affect the needs of people with disability.

Tenants

SDA assets and the income they produce have several characteristics that a mindful investor must take into account;

  • Tenants are not available on the open market. This means that the supply of tenants comes from specialists in the NDIS Sector – don’t assume that accommodation can be filled in the normal way by advertising. A useful site is Disability Housing.
  • Mixed tenancies meaning for example three people with disability sharing a home, have to be compatible with each other. Click here for the combination of features for SDA assets.
  • Most people with disabilities will work with specialists who understand the NDIS requirements and how to match needs to the supply of accommodation.

We work with RGH Consultants and Disability Accommodation Australia.