In keeping with our commitment to our clients to provide regular briefings on matters of interest to residential property investors see below.
The National Disability Insurance Scheme is a Federal Act developed in 2013 to allow Australians under the age of 65 with a disability to exercise choice and control about matters that affect them- such as their housing. ‘SDA’ (Specialist Disability Accommodation) refers to accommodation for people who require specialist housing solutions – not readily available in the traditional Australian rental market. The National Disability Insurance Agency is backed by legislation that requires agreement from all States and Territories before changes can be made.
For decades, the Australian disability housing sector has been overlooked and significantly under resourced, creating an enormous under supply of appropriate disability housing nationwide. 60% shortfall in disability housing This chronic undersupply highlighted in the Disability Royal Commission News link on Royal Commission September 13th 2019 prompted the $20b National Disability Insurance Scheme to allocate approx. 3.5% of the total NDIS budget to stimulate new disability housing. This disability housing program only rolled into S/E Queensland in 2019.
Specifically, the NDIS made an indexed 20-year financial commitment of $700m a year paid to ‘SDA’ investors. The NDIS has stated 28,000 disabled Australians will be funded to move into a new SDA compliant houses with the respective investors rewarded with rental yields that are up to 3 to 4 times higher than traditional real estate alternatives. This NDIS SDA funding is now rolling out in S/E Qld.
On March 22 2019, the Federal Government announced a National Action Plan stating that all disabled Australians aged under 45yrs currently in Nursing Homes will be placed into SDA Housing within 3 years and all aged under 65yrs into new SDA Housing within 6 years. Why such action? Young people ‘rot away’ in aged care How do young Australians leave an aged care facility currently? Bar graph on leaving nursing homes . This one area of focus for the Disability Royal Commission currently underway. The fact remains that little if any ‘high physical support’ certified housing is available nationally with most if not all under 65yr old ‘high need’ participants going straight from Hospital into an Aged Care facility.
We are currently working with leading NDIS providers to identify the best builders for these SDA approved properties. There are many facts for our clients to consider prior to making any decisions on these properties, particularly the quality of build to sustain the property over 20 years or more to retain the loyalty of tenants, who may leave for better accommodation elsewhere at any time.
The Federal Government incentives to investors is extremely attractive, with rental yields from 8% to 21% per annum depending upon the level of upgrades the property requires to accommodate specific tenants.
To have the full facts and your options call us on 1300680323, mobile 0404454628, email email@example.com
Don V. Duncan F.A.I.M.
Meredon Property Consulting Group
Don Duncan F.A.I.M.
Don is the Principal Consultant at Meredon Consulting, with over forty years experience in developing successful residential property investment strategies, and extensive experience in the financial sector, Don is uniquely qualified to provide you with the best property investment advice available. He is supported by experienced property investment consultants in both Brisbane and Sydney. Don is a Fellow of the Australian Institute of Management, and a qualified Trainer of Trainers. In addition to this Don has also been an active member in the community, he was a member of Rotary International and Past President Toastmasters Territorial Council of Australia.