Experts Warn Investors Against Misleading Promises in Australia’s SDA Property Market

Investors Warned: SDA Housing Returns Not as Guaranteed as They Seem

PRESTON, VICTORIA, AUSTRALIA, September 22, 2025 /EINPresswire.com/ -- Investors Pursuing Double-Digit Returns in the Specialist Disability Accommodation (SDA) Sector Urged to Proceed With Caution as Misleading Claims Circulate

“If Someone’s Pitching You 15% Returns on a Property That ‘Basically Runs Itself,’ Walk Away,” Said Goro Gupta, Founder of Ethical Property Investments. “The SDA Sector Is Attracting Hype-Driven Salespeople More Interested in Closing Deals Than Supporting Housing Outcomes. Unfortunately, It’s the Most Vulnerable Who Pay the Highest Price When These Schemes Fail.”

Despite Promises of Guaranteed Income, the SDA Market Is Far From Risk-Free. As of Late 2024, 42% of SDA Properties Across Australia Remained Vacant, Underscoring the Risks of Relying on Full Tenancy Assumptions. While Some Developers Promote Returns of Up to 15%, More Realistic Net Yields Sit Closer to 10–13% Once Vacancy, Compliance, and Location Are Considered.

In Regions Such as New South Wales, Oversupply Is Growing, With More Than 3,000 SDA Rooms Empty for Months. Even With the National Disability Insurance Scheme Allocating $700 Million Annually to SDA Housing, Many Properties Remain Unoccupied Long After Construction.

Gupta Highlights Several Red Flags for Investors:

Unrealistic Returns With No Mention of Risk

Lack of Focus on Tenants or Participant Needs

Packaged Deals With Inflated Land and Build Costs

High-Pressure Sales Tactics

Limited Transparency on Compliance and Vacancy

“Real SDA Success Starts With Participant Need and Long-Term Vision,” Gupta Added. “Ethical Developers Prioritise Compliance, Community Integration, and Tenant Outcomes. By Designing Homes Genuinely Wanted by NDIS Participants and Support Providers, We Deliver Realistic, Sustainable Returns for Investors.”

About Ethical Property Investments
Ethical Property Investments Is an Australian-Based Advisory Dedicated to Creating Positive Housing Outcomes Through Responsible SDA Development. The Organisation Partners With NDIS Participants, Support Providers, and Investors to Design Housing Solutions That Prioritise Tenant Wellbeing While Delivering Sustainable Financial Returns.

Goro Gupta
Ethical Property Investments
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