Defence Housing Australia
The Defence Housing Australia Website is great place to go if your after a hassle free investment property with a long term lease for security. Once purchased everything is handled by DHA (Rent, Property Management, Maintenance etc).
DHA offer large newish properties at non-negotiable prices with long leases of between 6 and 12 years with offers of 3 year extensions after that.
The main problem with these properties especially for the first 3-5 years is the bad return they offer rent wise. The rent offered is what I consider quite low for the price of the properties. The other kicker is the Defence Housing Authority charges a monthly management/maintenance fee of 16.5 per cent (inclusive of GST) of the gross rental income for houses, or between 12 and 14 per cent (inclusive of GST) for apartments, units, and most townhouses where a strata/unit development or similar entity is responsible for exterior maintenance. This is very high as compared to the management fees normal Real Estate agents charge.. (between 7%-9% usually). The trade off you get for these high fees is complete hassle free property investment (well that’s what they say).
So if you are after a hassle free, great quality new/newish investment property and your keen for a decent amount of negative gearing then the Defence Housing Australia Website might be one for you to check out. You can sign up for emails to be sent to you with their latest properties too.
My experience with DHA has been rather traumatic and after 10 years of owning a DHA property I can speak from experience.
What the fine print does not state is that the rent is fixed during the period of the lease and your chances of getting fair market rent as stated in their agreement are practically ZERO. My rent in Sydney is the same it was 10 years ago. Their annual valuation reports are fabrications and a figment of their imagination. Trying to even get through to someone to talk to is like banging your head against a brick wall.
I bought a property from DHA assuming they were a Commonwealth body and bound to reputable and honest.
I was sadly mistaken. I have found DHA to be a brazenly corrupt organisation and if you put your eggs into the DHA basket planning for your retirement - then 10 years on you can join me and repent at leisure.
Anil