SHOULD I INVEST IN SOCIAL IMPACT HOUSING?
Forward-looking property investors are keen to commit to projects with good rental yields and capital growth that are sustainable and add value to the local community. For this reason, investing in accommodation specifically designed for social housing can be a great option.
WHAT IS SOCIAL IMPACT HOUSING?
Social Impact Housing covers Social Housing and Specialist Disability Accomodation (SDA).
Social housing is a term used to describe a combination of public housing owned by a government authority or community housing. Most social housing is owned and managed by registered Community Housing Providers (CHP), but charities, churches or community organisations also work in this space.
‘SDA’ (Specialist Disability Accommodation) refers to accommodation for people who require specialist housing solutions – not readily available in the traditional Australian rental market.
WHY IS SOCIAL IMPACT HOUSING IMPORTANT?
The National Disability Insurance Scheme (NDIS) is a Federal Act developed in 2013 to allow people with a disability to exercise choice and control about matters that affect them – such as their housing. The NDIS has identified that many Australians with a disability are living in inappropriate accomodation.
WHAT DOES SOCIAL IMPACT HOUSING LOOK LIKE?
Across the nation, social impact housing can exist in apartment blocks, townhouses or stand-alone properties. These homes are designed to be inclusive for a wide variety of tenants. They often have different specifications from a standard build, for example, the inclusion of wider hallways and doorframes for participants in a wheelchair.
At Triple Zero Property, the social housing projects we have partnered with are unrecognisable as ‘social housing’- they look like and feel like any other home in the neighbourhood. This encourages diversity and inclusivity in the community but also means if it is no longer needed for social accommodation, it can be repurposed and reoccupied for the general market.
WHO CAN ACCESS SOCIAL IMPACT HOUSING?
Everyone should have access to affordable, safe and secure housing. However it takes a team to match the needs for some of the vulnerable members of our community with the right home in the right location.
“It’s really important to have your own space, to have a sense of control over where you live…” – Social Impact Housing Recipient
PARTNERSHIPS ARE KEY
Successful investing in Social Impact Housing relies on a partnership between many stakeholders.
This includes the property specialist, financier, legal advice, the specialist builder, the NDIS provider (to deliver health and other support services for the participant or ‘tenant’), and the participant.
This team approach is necessary to ensure that the location and style of home matches the right mix of participants and their specific requirements for the long term.
SHOULD I INVEST IN SOCIAL IMPACT HOUSING?
If you want to invest in property that is sustainable, accessible and improves the quality of life for more Australians,there are options available. Firstly, your financial investment needs to stack up and this is where an independent, professional team (financier, accountant, conveyancer, and property specialist) can guide you. For investors, social impact housing can provide long-term rental security through a head-lease with a registered Provider.
Danny Buxton, Director of Triple Zero Property explains, “while investing in social housing may not be every investor’s choice, it can be a great option knowing that your home is making a real difference for someone else”.
“Clients come to us to help them secure an investment property because they want a growth-focused, long-term financial investment, but that is just one requirement. The more astute investor wants a quality home that is sustainably built and good for the community in which it is located”.
HOW DO I FIND THE RIGHT PROPERTY?
The location and the design of the home is vital to the long-term viability of the project:
- Is it close to community services, transport and employment hubs?
- Does the design reflect the participants requirements?
- Is the builder a specialist in these types of homes?
- Will the specs be a quality home that is designed to last?
- Is the location and build approved by an appropriate NDIS provider?
If you want to secure a property that ticks all the boxes, the team at Triple Zero Property can help.
If you would like more information call 1300 897 000 or email [email protected].
For more information:
Visit our YouTube channel for more resources on Social Impact Housing.