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I had one DHA investment for 12 year. In recent years, DHA had changed their contract, and as the result of that, the expoure for the owner is very high.
DHA is no longer offering guarantee lease – there is a section in the lease that gives DHA the rights to terminate the lease prior to the expriation date.16.5% management fee is very high, especially if you think about a whole lease term, ie 6 yr or 9 yr or 12 yr – 16.5% on annual rent for 6, 9 or 12 years will get you to repaint your property many times!
Please note that DHA also has the right to change the rent annually – so be careful.
Most of the DHA property in the market has incl. so call DHA lease benefit in its sales price – it is unlikely you will find a good value purchase.
Average return is 3-4% on DHA property – not really attractive.
