Video summary

Webinar - SDA Knockdown Rebuild Projects

Main summary

Key takeaways

Business

Business summary: SDA knockdown rebuild projects (webinar)

The webinar explains how to plan and deliver NDIS-funded Specialized Disability Accommodation (SDA) knockdown rebuild developments, with a focus on:

  1. Selecting the right SDA dwelling type
  2. Ensuring SDA compliance and service ratio match
  3. Controlling project risk using feasibility, demand assessment, and conservative budgeting
  4. Improving investment outcomes through site optimization, participant sourcing, and future-proofing

Key concepts & frameworks / playbooks mentioned

SDA “STA process” (high-level end-to-end workflow)

A broader process view showing how stakeholders connect across:

  • design
  • compliance
  • finance
  • approvals
  • build
  • SDA/SIL provider matching

“Step 1 to 20” planning approach (build plan + work backwards)

Advice: map the full development sequence upfront. Many investors understand the steps conceptually, but fail to map execution timing—leading to delays and operational “headaches.”

Demand assessment as “bubble boy” (data + story + validation)

The approach uses three components:

  • Number (data)
  • Story (what it means for disability clusters / local care need)
  • Validation (ground reality, competition, and on-the-ground stakeholder input)

It also recommends thinking in 360° terms because demand and supply pipelines can change.

Product selection triangle: “DDD = Design, Data, Desirability”

  • Design: dwelling type/layout suited to tenant needs and SDA rules
  • Data: supply/demand/pipeline and competitor activity
  • Desirability: where participants actually want to live (amenities, hospitals, transit, social networks)

Project dependency & parallel execution

  • “If you can’t do step two, you can’t go to step three”
  • But multiple workstreams must run in parallel for time/cost efficiency

Operational / delivery process (execution mechanics)

Knockdown rebuild delivery is outlined in phases (before / during / after).

Pre-development (“before”)

  • Feasibility and planning permits early
  • Council zoning + planning overlays checks
  • Demand assessment (local disability needs + provider/health system capacity)
  • Finance structure & cash buffer planning
    • Banks generally won’t fund all pre-contract costs; these must be cash-backed

Design & compliance (“design and certification”)

  • Engage an SDA assessor early at design stage to avoid late surprises
  • Use professionals who understand SDA requirements:
    • architect/designer
    • town planner
    • SDA assessor
    • SDA-aligned builder/team
  • There is no “SDA approved architect/builder” shortcut:
    • investors still must select teams with SDA experience and capability
  • Stage certification to prevent late rework (e.g., plumbing fixture placements)

Planning & approvals + construction (“planning permits / demolition / build”)

  • Demolition permits and booking timing matters
    • example noted: costs/interest can run ~6 weeks
  • Use 3 quotes minimum for trades/building scope
  • Don’t ignore civil/structural/cost drivers:
    • excavation
    • retaining walls
    • site-specific drainage
  • Monitor building class requirements
    • (Example reference: Victoria: Class 3 vs 1B, and discussion of fire sprinklers)

SDA enrollment & final inspections (“after”)

  • Occupancy permit before NDIS registration
  • SDA provider and SDA assessor involvement for final inspection
  • Distinguishes SDA assessor inspection vs building inspection to avoid layout/fixture non-compliance

Revenue model / KPIs & investment metrics referenced

No formal KPI dashboard is presented, but the webinar repeatedly addresses investment economics and risk control through income drivers and metrics.

Income & rent mechanics (SDA + services)

Rent is a function of:

  • SDA component
    • linked to dwelling type and compliance category (including new vs existing/legacy stock)
  • Support/service component
    • funded based on disability intensity

Core matching requirement:

  • SDA must match both:
    • tenancy ratio
    • service ratio

Example ratio mentioned:

  • high physical support commonly 1:3
    • “3 people live in the house,” and service funding is shared based on disability intensity

Vacancy rate & break-even risk (location-dependent)

  • Outer/greenfield sites can carry higher vacancy risk due to oversupply
  • Established suburbs are positioned as having better vacancy outcomes
    • participants can return to familiar communities over time

Contingency / cost controls

Recommended budget guardrails:

  • 10% minimum contingency
  • earlier guidance to keep a ~30% funding buffer when needing more cash than the bank will provide

Major ROI threats:

  • construction and certification surprises

ROI / break-even timing (illustrative targets)

Illustrative example targets included:

  • scenario referencing ~$70,000 return aiming for ~11 years break-even
  • ballpark “minimum” stated as ~$1.5 million start (often land/position dependent)
  • emphasis from a guest questioner:
    • “~$2 million for a knockdown rebuild development” as a safer starting point
  • Melbourne established middle-ring knockdown rebuild often ~$1.5m–$2m, depending on dwelling configuration

SDA dwelling types: product selection guidance (strategy)

The webinar clarifies four SDA dwelling types and how they drive compliance design and market demand:

  • Robust (mental disability)
  • Improved Livability (IL)
  • Fully Accessible (FA)
  • High Physical Support (HPS)
    • includes needs like hoists and more automation
    • potential upgrade paths (e.g., FA to HPS via design choices such as extra beams/structure)

Tenant-category nuance

  • “IL and Robust” can be categorized more closely than other pairings
  • a project may be converted based on demand (described as an example)

Concrete examples / case illustrations

Existing stock conversion vs new build

  • Conversion example:
    • ~$150,000 spent to make an existing property SDA compliant
    • insufficient work remained; ultimately compliance required significant additional spend
  • Refurbishment benchmark:
    • minimum refurb costs mentioned around $400k–$600k
    • implying new build may be financially rational in some cases

Vacancy and established vs outer suburbs

  • Outer/greenfield oversupply example:
    • investor might face ~1 year with no return, paying interest
    • strategy: raise rent (example $30,000 → target $40,000) by engaging SDA/SIL providers to improve occupancy
  • Established suburb dynamic:
    • investors/participants may relocate when oversupply pushes them out, then return when stock availability improves

Build design story (high physical support)

An established suburb layout example included:

  • accessibility features (e.g., wide doors ~1.2m)
  • goal of no-stepless entry
  • segregated allied health/privacy/activity areas
  • “half bench vs full bench” concept for wheelchair users to cook independently
  • disability-approved fixtures/white goods specificity (handles, sink design, plumbing, drainage/layout compliance)

Future-proofing tradeoffs (examples)

Upgrades mentioned (Debbie), such as:

  • second living space
  • height-adjustable equipment
  • more accessible storage/wardrobes
  • landscaping
  • accessible vehicle on site
  • more storage for SILs
  • larger office + separate carer/care-provider area (OA room/office)

Actionable recommendations (what to do)

  • Avoid “tick-box” thinking: design for lived experience and usability, not just minimum compliance
  • Engage an SDA assessor early (design stage) to prevent expensive redesign
  • Do real demand assessment using competition and ground validation—not only desk research
  • Select sites near transit and key services
    • stated targets:
      • train station ~500m
      • bus stop ~200m
      • shopping within ~5 minutes (rolling distance implied)
  • Use a conservative financing approach
    • maintain cash for pre-contract costs and contingency buffers
  • Start participant matching/marketing ~6 months out
    • don’t limit to one SIL provider; widen based on provider capacity and reputation
  • Future-proof only where ROI makes sense
    • weigh demand-driven upgrades versus additional capex

Investing/market notes (high level)

The webinar argues that:

  • location (established suburbs near amenities) and supply/demand matching matter more than generic “land affordability”
  • oversupplied pockets can lead to vacancy risk and longer holding periods for investors

Presenters / sources mentioned

  • Debbie — NDIS Property Australia (host)
  • Min — NDIS Property Australia (co-presenter; limited due to illness)
  • Mehul (Mahul) — founder, SDA Choice (guest speaker; knockdown rebuild experience and construction delivery)

Mentioned during Q&A:

  • Radius Property Group (Jason McDaniel referenced)
  • NDIS / NDIA (program rules and dwelling/rent mechanisms)
  • SDA providers and SIL providers (industry roles referenced)

Original video