Residential Properties with Secure Leases – DHA, Quest

Hi, to answer your question:
1) Residential
2) In terms of borrowing, banks evaluate it the same as any regular residential property. It doesn't give you more borrowing capacity due to secure tenants.

Some negative sides of DHA leased property:
1) You, as the owner, do not have any control of the property, means you can not carry out any renovation work or other improvement work while DHA leasing it.
2) It is very difficult to negotiate increase of rent during the lease. if you have a long lease with them, it is likely that your rent will not be up to the market level after couple of years.
3) DHA charge commission of 15%-17% to manage your property, it is much higher than the normal real estate agent's 5.5%.
4) If you sell it within the lease period, you can only sell it to investors, which limit the number of potential buyers, so will have an impact on the price too

hope it helps.

Both DHA and Quest style serviced apartments offer secure rental however you are trading off capital growth because of restricted market for resale (ie. other investors). Serviced Apartment LVR is often limited to 60-70% by banks depending on internal sizing. Also in the case of Defence Housing, the location of army bases may not always coincide with amenity, infrastructure and other drivers of growth.