I have heard of people who buy property with the specific aim of renting to a govt body (eg: army or airforce) for a fixed term. Does anyone know where to get more info on this type of investment and what the returns are like. Thanx in advance[
]http://invest.dha.gov.au/dha/html/dhaprop/invest.htm
They have a lot of info on their website. There are a lot of positives and some negatives associated with this type of investment.
As an Army Officer and Mortgage Broker I have had some experience with their system and would be happy to answer any questions either in this forum or by email.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon. Thank you for your prompt reply. I will look into the website and also find out more info at a 4 day seminar I am atending this weekend. Thank you for your offer of more info from yourself and once I have returned from the conference I may take you up on that. Thanx again..[
]Hi Simon,
I had a look at the website and it looks very interesting. I would guess that they are not positive cashflow properties but the risk is a lot less by the sound of things. What are the positives and negatives from your experience.
You can email me on [email protected] if you prefer.
Cheers,
David [
]Hi Funky, Simon, David…..
I get DHA to email me with any new properties available… But yes, a lot of them are negatively geared, especially the Sydney ones of course. Some of the ones in Townsville and other areas in Qld look like they could be positively geared.
The good thing about DHA properties, is that you don’t have to worry about the maintenance, and they are always tenanted. And after the term is up, the DHA cleans up the place before you get it back… (Basically repainted and sometimes re-carpeted I think)
I guess they are a good “no worries” investment.
Lozza
All the positives are in black and white on their website. Great long leases, well maintained and inspected properties. Built to a standard and painted and recarpeted on expiration of the agreement – depending on the length.
The negatives that I have heard about from investors are mainly,
High management fees, this is balanced by 100% occupancy.
Rent is not always adjusted to market rate to satisfaction of owners.
Because of the long leases they can only be sold to another investor. I have heard that this may result in a reduced valuation due to a limited market.
Overall I think they are great for an investor who needs a little additional security and is happy to negative gear. I think the more sophisticated investor might find the restrictions a little stifling!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Agree that the nthn qld IP’s look the best, but the mgmt fees are around 16% of rent which is steep but it does cover most maintainence and repairs, so a bit of insurance really
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