Are People Investing in SDA?
Yes, there is significant and growing investment interest in Specialist Disability Accommodation (SDA) properties across Australia. The SDA market has attracted a diverse range of investors due to its unique combination of attractive financial returns and positive social impact.
Types of Investors
The SDA market has drawn interest from various investor profiles:
- Individual investors
- Property developers
- Disability support providers
- Institutional investors (e.g., superannuation funds)
- Large financial institutions
Attractive Investment Features
Several factors make SDA an appealing investment option:
- Above-average rental yields, typically ranging from 12% to 16%
- Government-backed funding through the NDIS
- Long-term, stable income streams
- Opportunity for positive social impact
Notable Institutional Investments
Large institutional investors have recognised the potential of SDA:
- HESTA, a superannuation fund for health and community services, has invested in SDA properties to provide stable long-term income for their members.
- Goldman Sachs Asset Management launched an investment platform offering institutional investors exposure to SDA properties, participating in a $137 million deal.
Market Growth and Challenges
While investment in SDA is growing, the market still faces some challenges:
- Need for increased education and awareness among investors and developers
- Ensuring properties meet the specific needs of NDIS participants
- Balancing financial returns with quality outcomes for tenants
Conclusion
The SDA market in Australia is attracting significant investment interest from a wide range of investors. As awareness grows and the market matures, it’s likely that investment in SDA properties will continue to increase, driven by the combination of attractive returns and the opportunity to contribute to an important social need.
#buyinvestlive #NDIS #SDA #investmentproperty
