All Topics / General Property / Defence Housing Australia (DHA) property investing

Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of jeromejfjeromejf
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    @jeromejf
    Join Date: 2012
    Post Count: 29

    hey just looking for some  feed back  or advice  on Defense housing property investing from people wo either have done it or or got this investment  or hav more info on this

    I read in the money magazine  feature that is  is a good investment  as rent is guaranteed  and they replace anything  and do a bit of clean up with painting etc if needed  before the contract is over and property handed over.  And there was this couple who had bought two properties alredy and was  happy with it 

    any views or tips or advice.. thinking about  property appreciation ?/ etc

    Regards

    jeff

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    You pay high property management fees and the properties are often not in first class locations. There fore your capital growth could be limited. Frankly with high Tennant demands across Australia I think there are better options.

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    Profile photo of mick64mick64
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    @mick64
    Join Date: 2012
    Post Count: 45

    The property management fees are also very high…….18% from memory!

    Profile photo of jmsracheljmsrachel
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    @jmsrachel
    Join Date: 2012
    Post Count: 711

    I’ve looked into this but for the reasons above the numbers didn’t stack up for me.

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    It depends on your goals – if you are after a worry free investment ie low risk with consistent income, then go for it. If you want a property that you can learn from go for a mainstream ip.

    You are paying a premium in many cases for this type of property yet your returns are limited however the trade off is maintenance, vacancies etc are all looked after in the management fees charged.

    You might consider something like this inside a smsf for the stable cashflow.

    Profile photo of jeromejfjeromejf
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    @jeromejf
    Join Date: 2012
    Post Count: 29

    I dont like the idea of high management fees  and  also no property appreciation  due to its location ..so it s looking even  less attractive to me now 

    I suppose if i had lots of cash  to spare then i would look at it  just to diversify the portfolio

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Looking at today's Financial Review, they had wild projections of 15%+ total over the next 3 years for locations like Darwin – Defence Housing is big up there and if there is growth to be had you might want to be part of it.

    Profile photo of jeromejfjeromejf
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    @jeromejf
    Join Date: 2012
    Post Count: 29

    That surely a plus point  in its favour,

    wish i had the spare cash 

    Profile photo of N@thanN@than
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    @n-than
    Join Date: 2010
    Post Count: 241

    I looked into them a while ago but found that apart from the high fees, the price of the property is at a high premium. I ended up buying the same type of house for nearly 50K less. As long as you due your homework you shouldn't have any issues with vacancies. I think they are a great idea for people who are after hassle free property investing and are willing to pay a bit extra but that just isn't me at this stage anyway. All depends what you are after really?.. From your comment above about the spare cash I think you should do your homework and buy one on your own to help save those extra dollars!

    Profile photo of MysteryMystery
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    @mystery
    Join Date: 2006
    Post Count: 87

    Sometimes you come across DHA houses for sale on real estate sites with a few years of the lease remaining that are quite reasonably priced, but I'm not sure if you can negotiate price or not.

    Also Occasionally Defence Housing sell them on through there site with a few years on the lease remaining and the lease extension option

    Could be an alternative to buying new if you are interested.

    Mystery

    Profile photo of Andrew_AAndrew_A
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    @andrew_a
    Join Date: 2003
    Post Count: 392

    Got some good deals on established DHA houses where the original owner paid far too much, as other posters have mentioned the deal needs to make sense on it's own, forget the new carpet and lick of paint at the end of time. 

    Also.. vacancies are one of the horrible imaginary threats that newer investors see with property, with insurance and a property in good condition and location it's hardly ever a concern with residential.

    Profile photo of ShedinShedin
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    @shedin
    Join Date: 2012
    Post Count: 14

    Not quite 18% at present as this I have just read on their website

    The service fee is calculated as a percentage of the rent and varies depending on the property type: they charge 16.5% (including GST) for freestanding houses.

    Shedin

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