Something we have noticed consistently in recent enquiry: buyers based in New South Wales are among the most active and the most decisive in the Victorian Specialist Disability Accommodation market. That is our own observation of who is calling and who is transacting, not a published statistic. But it is consistent enough to be worth explaining, because the reasoning behind it is sound and it...Read More
Most content about Specialist Disability Accommodation is written for buyers. Very little is written for the investor who already owns one and is starting to think about the exit. That is the harder question, and it has three parts: what the asset is worth, when to sell, and what you do with the proceeds. What Your SDA Dwelling Is Actually Worth The first thing to...Read More
Because a tenanted dwelling is generally priced on the income it produces rather than on what it cost to build. Once an SDA property has participants in it and is earning, buyers value it the way they value any income producing asset: by the return they get on the price they pay. The Short Version of the Arithmetic A dwelling built for around $700,000 that...Read More
Investors regularly ask why a tenanted Specialist Disability Accommodation dwelling carries a higher price than the cost of building the same thing new. It looks like a premium for nothing. It is not. The answer is that you are buying two different things. One is a construction project. The other is an income stream that already exists. Two Ways to Price a Property Build cost...Read More
Specialist Disability Accommodation produces income differently to a standard rental property, and that difference is the whole reason investors look at it. This article walks through the mechanics with a worked example, so you can see where the return actually comes from. The Income Model in One Paragraph An ordinary rental property earns one rent from one tenancy, set by what the local market will...Read More
