I have just started looking into the world of property investing and have read a bit about people investing in Defence Housing through DHA and/or Aged Care? Has anybody done this and what are your thoughts on it?
There are a number of threads on DHA investments Louise. Typically they are set & forget however you pay a premium for them, ie higer purchase price as well as higher management fees. It depends what you are after – the ups and downs of the market with vacancies or a 10 year lease with annual reviews backed by a AAA tenant and all outgoings, repairs and maintenance paid for.
Yes I see that the purchase prices are generally quite high which has put me off a bit considering I don't even own my own home. In your experience or knowledge is there much capital growth with these houses?
Only as good as the area in general – they will not appreciate more than other houses. It may be worth going through all of the motions with DHA, finding out where the houses are (usually near barracks or other facilities) and buying nearby eg Williamstown, Townsville, Richmond. find out long term plans for the military base eg expansion, consolidation, closure etc.
There are many service industries which rely on large industries like the military so there will always be a need for housing of allied services (not necessarily through DHA).
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