ETHICAL PROPERTY INVESTMENTS

NDIS Disability Housing Investment in Melbourne & Preston

At Ethical Property Investments, we support clients interested in ethical property options that contribute to long-term housing outcomes for people with disability.
We collaborate with experienced providers of Specialist Disability Accommodation (SDA) to guide you through the process, from property planning to compliance considerations.
Our role is to help you explore responsible, values-based property solutions across locations such as Melbourne, Brisbane, Sydney, Adelaide, and Perth.
It’s important to understand that investment in SDA is not risk-free, and returns or tenancy outcomes are not guaranteed. Individual results depend on location, participant demand, and property suitability.

Government Funded Accommodation

High Cash Flow

Tenancy Guarantee

A Need For Disability Housing

Specialist Disability Accommodation (SDA) refers to housing specifically designed for people with extreme functional impairment or very high support needs. Purpose-built disability housing is a growing sector within Australia’s broader residential landscape.

SDA payments are made under the National Disability Insurance Scheme (NDIS) to eligible participants with SDA funding in their plans. These payments are intended to assist participants in accessing suitable accommodation. Income from SDA properties depends on various factors including demand in the area, the design of the dwelling, and individual participant preferences.

Like all property investments, SDA housing carries risk. Income is not guaranteed and can be affected by vacancy periods, local demand, and participants’ support needs. Investors typically work with registered SDA providers to manage the dwelling and its occupancy. Similar considerations around accessibility, design and community needs can also be relevant when exploring senior co-living housing.

It’s important to understand that the NDIA does not endorse specific investments, and funding is allocated to participants, not properties. Investors are encouraged to conduct thorough due diligence and seek independent financial advice before entering into any SDA arrangement.

Government Funding for Disability Housing

The Australian Federal Government, through the NDIS, allocates funding to eligible participants who require Specialist Disability Accommodation (SDA). These supports aim to help people with extreme functional impairment or very high support needs live more independently.
SDA property investment is an emerging sector designed to address important social needs, with the potential for income. However, returns are not guaranteed and depend on a variety of factors, including participant demand, property location and design, and whether the dwelling is enrolled and tenanted.
For over two years, our team has worked closely with leading SDA providers to develop homes that meet NDIS design requirements. Through our partnership with Empowered Liveability, we aim to support participant housing goals and streamline the path to tenancy, while recognising that each participant’s needs and housing choices are unique.
It is important to seek independent advice before considering an SDA investment, and to understand that income may fluctuate depending on occupancy levels and ongoing compliance with SDA standards.

SDA Checklist PDF

Benefits of investing in SDA and NDIS accommodation include:

Participant-Funded Rent: Rent may be covered under a participant’s NDIS plan, depending on their eligibility and support needs. It is not guaranteed and depends on occupancy.

Strong Return Potential: Some investors have seen attractive returns based on demand, location, and tenant suitability. Returns are not guaranteed and can vary.

Long Lease Possibilities: SDA providers may offer longer lease terms based on participant needs and agreements, though lease lengths can differ.

Cash Flow Opportunities: Certain SDA investments may deliver strong cash flow, but results depend on property factors and market demand.

Trusted SDA Partners: We work with experienced SDA providers to help connect with participants. However, occupancy is based on participant choice and plan approval.

We are proud to be actively engaged in Australia’s growing SDA housing sector, helping deliver quality disability accommodation in line with NDIS goals and participant choice.

Our SDA provider partners have extensive experience and are widely recognized for their commitment to delivering high-standard homes for people with disabilities. We continue to work closely with industry professionals to support inclusive and participant-led housing outcomes.

Goro Gupta says SDA properties have been built in areas that do not suit people eligible for the scheme. (Four Corners)

Location frustration

There are investors like the Wilsons all over Australia, who have built or bought disability homes where they are not needed, often under the guidance of property or investment advisers.
Property investment adviser Goro Gupta said part of the problem was that the NDIA — the agency that administers the policy — has not released clear data about where eligible people with a disability want to live.
That has meant many SDA houses have been constructed on the outskirts of capital and regional cities where the land is cheap.
“That’s why, of course, the average investor wants to invest,” Mr Gupta said.

“But it’s not necessarily where people with disabilities want to live.”

At one estate in outer-western Melbourne, he was incredulous that so many houses for people with profound disabilities had been built.
“In these areas, there’s a lack of amenities,” he said.
“It’s not close to shops, it’s not close to the allied health services that people with disabilities need on a day-to-day basis.
“I mean, have a look at this area. It’s paddocks.”
For some investors who have overextended to build the homes, renting them out as a normal property is not an option because the returns are nowhere near enough to cover their mortgage repayments.
That means the homes are sitting empty in the hope that an eligible disability client will move in.

The true scale of oversupply

The agency in charge of administering disability housing does not have a clear picture of how many homes are unoccupied.
Four Corners has found that some streets in Melbourne’s outer west have more than half a dozen houses that are empty. And in one location, there were more than 10.
The ABC’s analysis of the little data available showed that, across Australia, there were at least 760 vacant SDA properties out of the 7,500 that had been built.
But the peak body that represents almost half of the SDA market in Australia told Four Corners that the number of empty homes would likely be significantly greater.
“I would argue that there’s well in excess of a thousand empty homes across Australia at the moment,” said Jeramy Hope, the CEO of SDA Alliance.

What is the NDIS/SDA?

In recent years, the National Disability Insurance Scheme (NDIS) has expanded opportunities for eligible participants to access improved housing options through the Specialist Disability Accommodation (SDA) program. SDA refers to purpose-built housing for individuals with extreme functional impairment or very high support needs, which cannot be met by the mainstream housing market.
Funding for SDA comes from a participant’s individual NDIS plan and is designed to increase access to safe, suitable, and accessible housing. This funding is not guaranteed for any particular dwelling and applies only if the participant qualifies for SDA and chooses to live in an enrolled property.
It’s important to note that only a small proportion of NDIS participants, currently around 6%, are expected to be eligible for SDA, and eligibility is determined through a thorough assessment process based on personal needs and support goals.

Disability housing in Melbourne challenges

There is SIGNIFICANT amount of ‘red tape’ that must be gone through before both the landlord and tenant are matched up. By no means is this an easy process. Luckily, Securing SDA housing involves a detailed process that ensures eligible NDIS participants are matched with appropriate, compliant housing based on their individual needs and plans. While the process can be complex, we collaborate with experienced SDA providers who support participants throughout their journey, from eligibility to exploring suitable housing options.
One of our partners, Empowered Liveability, has a strong track record in supporting individuals with disability by working alongside allied professionals and support coordinators to improve housing outcomes within the SDA framework.

Goro Gupta says that, despite issues in the SDA system, “it is thoroughly profitable and ethical if done right”. Source: Supplied.

‘Screwed over’ by ‘spruikers’

Ethical Property Investments CEO Goro Gupta — who has worked in disability housing since 2017 — says he’s also heard multiple stories of foreign investors being “screwed over” by SDA “spruikers”.
In May, the Courier Mail reported that Cocoon SDA Care — a company that has been the subject of much media coverage and which the NDIS has now permanently banned from providing disability support and services — sought to recruit foreign investors.
Gupta also says any promises of “guaranteed” government-backed returns for an SDA investment were a “lie”.
“There is no direct relationship between the investor and the government. The way the system works is, once a resident moves in, an SDA provider can bill their plan, and it’s up to the SDA provider what their arrangement with the landlord is,” he says.

NDIS Minister Jenny McAllister agrees that finding a government-funded occupant for an SDA property isn’t a guarantee.
“Specialist Disability Accommodation investments are not government-backed. Occupancy is not guaranteed,” she says.
“There are unfortunately some people active in the Specialist Disability Accommodation sector that come to mum and dad investors and give them information that just isn’t true.”
Once a tenant moves in, general returns are typically anywhere from 8 to 15 per cent, with an industry median of around 12 per cent, Gupta says.
However, because much construction has occurred in areas with little or no demand, the national vacancy rate for available but empty SDA properties is around 16 per cent, according to SBS News’ analysis of vacancy data from the National Disability Insurance Agency (NDIA).