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NDIS Special Disability Accommodation (SDA) – 10-15% pa returns with risks.

Marty McDonald - Thursday, July 08, 2021

NDIS Special Disability Accommodation (SDA) – 10-15% pa returns with risks.


You may or may not have heard of the NDIS SDA program. This is a scheme whereby properties are built to a higher spec level than normal properties which allows disabled persons to live a more self-sufficient life. Wider entrances and halls, larger bedrooms, kitchens that allow wheelchair access under sinks etc. There are also different spec levels for the degree of disability.


The attractive thing from an investor point of view is the significant government incentives on the rental returns circa 10-15% gross pa returns which are guaranteed for a 20-year period.


However, on the flip side I’m finding this is an extremely complex area and most mainstream lenders are not on board for financing. There are definitely some risks. The main one for me is you could end up with a property that is not easy to resell. The other risks are you may end up with a property that is not attractive to the disabled for some reason. This could be that the design or build is not desirable to the disabled community or the property in the wrong area with limited demand. With no tenants there is no rent. With tenants the rate of return is guaranteed for 20 years.


I am currently exploring the nitty gritty with 2 lenders that are willing to fund builds for NDIS SDA. If you would like to know more as I explore this further, please let me know and I will update you as I learn more.

About the Author: Marty McDonald is principal of mortgage broker “Mortgage Experts”. Marty specialises in assisting active property investors with loan structuring advice and implementation as well as helping credit worthy borrowers with slightly outside the box income and employment situations. Find Marty on  and LinkedIn.

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