Defense Housing Australia (DHA)....

Hi @devank ,

I didn't buy the property from DHA. I want them to take control of it if it meets their requirements. Do share the calculations you have done because I bought the property with tenants (monne to month as their lease has expired couple of months ago).

@Ted Varrick : it is going to be my property so I can sell whith whatever price I want (figure of speach) as long as the DHA lease isn't in place!!

 

There are many DHA properties around where I live, a fifteen minute drive to Enoggera outside peak hour traffic.

 

@Newfast - premises needs to be new or near new and immaculate. Check their website.

 

It sounds so good in theory, 10+ years guaranteed rent, then sell at market price 10+ years later or keep going. I can't think of any 'catches', what would they be?

 

Mine is built in 2008 and looks like new

 

Must be the low yield

 

They have a checklist of fittings that must be included. Friend's daughter had them assess her house and was given a list of inclusions she needed to install even though the house was only 2-3 years old. She decided not to follow up.
Marg

 

Sometimes $)()$&@ happens and plans change.

If you need to sell during the lease period, you are limited to investors as the lease must be honoured. And sometimes the leases have options to extend.
Marg

 

Thanks @Marg4000

 

But what if you buy somewhere that doesn't have any maintenance issues?

 

I don't have a reliable crystal ball.

 

I was interested in buying a place that had DHA lease still in place, cutting a long story short, too much of a pain in the rear, to book an inspection they wanted proof of financials, i.e a pre approval, no thanks, not if I do not like the property but have had to jump through hoops.

This was DHA req

 

Most of mine haven't had any really painful maintenance issues. I wouldn't pay 16% management fees for peace of mind. That's what insurance is for I guess.

 

But if you already have a property, still you have to go through all the hoops?

 

Certainly seems to lower the risk in regional areas in terms of long leases but the management fee needs to be seriously considered. And I think the rent renewals are assessed by DHA as opposed to the landlord, which is also a risk.

ie. "Hey, Barber, do I need a haircut?"

Note that my Avatar would not indicate the affirmative...