Townsville, Qld HPS SDA Sold with tenants moving in before settlement
Annual gross income
Funding from NDIS: $95,384 Reasonable rent contribution: $33,311 Total: $128,695 Gross Yield: 15.3%
Background
This High Physical Support (HPS) SDA home hit the market in the final stages of construction in 2024. By the time it settled, an eligible participant and their family had already moved in. However, full SDA funding hadn't yet been approved. As a result, the property was only generating general rent - not the higher SDA payments - which affected both cash flow and the valuation outcome. Sold for $840,000
Challenges
No SDA income at time of sale: The participant had moved in but was still awaiting formal funding approval.
Valuation uplift not at maximum: The property received a commercial valuation, but not at the full uplift cap — reflecting its transitional funding status.
Unbalanced local supply: While there is demand in Townsville, supply exceeds it in many areas, which can impact long-term occupancy if not carefully assessed.
Solution
Participant already living in the home: This de-risked the vacancy question and improved lending viability.
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Full SDA funding approved post-settlement: Within three months, funding commenced — significantly improving cash flow.
Detailed supply vs demand analysis: A thorough NDIS market review was provided to the buyer and their lender to support finance approval and future leasing confidence.
Result and Impact
Sold during final stages of construction — with a participant already living in the home but not yet receiving SDA funding. The buyer accepted some transitional risk and was rewarded with strong long-term returns. SDA funding commenced 3 months after settlement Annual SDA Income: $95,384 Reasonable Rent Contribution: $33,311 Total Gross Income: $128,695 Sale Price: $840,000 Gross Yield: 15.3% Result: High-yield SDA asset secured at a price that reflected temporary funding uncertainty, now fully operational.
Insight and Expertise
This case highlights the risk–reward trade-off often seen in NDIS property deals. At the time of sale, there was no confirmed SDA funding — even though a participant had moved in and was eligible. The buyer had to weigh that uncertainty, knowing there was a chance the funding may be delayed or fall through entirely. In this case, the calculated risk paid off. The property did receive a commercial valuation, but it was not at full capped value. The capped value depends on whether the home is: Vacant, Tenanted, Funded, Fully tenanted with confirmed funding. This deal sat between the latter two — a participant was in place, but full SDA payments hadn’t started. The valuation, therefore, reflected that transitional stage. 📌 Our experience helped the buyer see through short-term uncertainty to secure a long-term, high-yield NDIS asset.
