Defence Housing
- Thread starter PRP
- Start date
The figures have to stack up for your investment plan placing the rental guarantee and other items aside.
...true but are you happy to wait 15 yrs to get any? Saying that growth is bound to happen is like blindfolding yourself and turning around 3 times and saying you are bound to hit something with the dart you toss.
This is not a strategy for maximising your wealth. You should know why your chosen area is going to grow. Regional is fine if you know what you are doing, otherwise plan to be very patient.
Defence housing is fine if you need that security and can't handle the stress of open market rentals, but they are rarely bargains.
Even better. Use google and type "DHA site:somersoft.com" or "defence housing site:somersoft.com" in the search box. Grab a cup of your favourite hot beverage and settle in for plenty of reading.
PRP,
My first IP was a DHA one in Wodonga, Victoria. I serve in Defence so was a good option for me given I was getting extra grants for buying in the area.
I purchased land and chose my own builder to build to DHA requirements. Land 110K and build was 200K. Cost was 320K after landscaping. 4 bedroom, 2 bathroom, 2 car garage. 500m2 block.
Offered place to DHA. They accepted at 370pw rent. Rent review every 12months based on current market.
So rental return was reasonable. DHA cover most minor repairs at no cost and repaint/replace carpets after 6 year or longer lease. As well as lease extensions. Fantastic option for security and low fuss. Set and forget. Management team are well drilled and no what there doing.
Negatives
The area I bought in has been slow for CG but is positive cash flow so not hurting me. Quite common in regional areas.
Management fee is a lot higher. Don't let that deter you. I can tell you I have a lot more headaches with my other property manager which is not DHA.
Be carful with rental reviews as they tend to drop the rent after the first year. But you can appeal it and get the same if not more.
Overall I like it as a set and forget investment. Great for People that have no idea as they do most the work for you. I wouldn't recommend buying from DHA with a lease inplace as these properties are generally priced over market value. Regional areas are going to be slower with capital growth. Im still learning, but when I look back on it I could have easily invested somewhere else and had far greater CG. If you need High rental yields, maybe look somewhere the CG might be better. DHA staff are quite helpful and easy to deal with. Do your figures to make sure it all adds up.
Hit me up if you have any more questions.
Cheers
My first IP was a DHA one in Wodonga, Victoria. I serve in Defence so was a good option for me given I was getting extra grants for buying in the area.
I purchased land and chose my own builder to build to DHA requirements. Land 110K and build was 200K. Cost was 320K after landscaping. 4 bedroom, 2 bathroom, 2 car garage. 500m2 block.
Offered place to DHA. They accepted at 370pw rent. Rent review every 12months based on current market.
So rental return was reasonable. DHA cover most minor repairs at no cost and repaint/replace carpets after 6 year or longer lease. As well as lease extensions. Fantastic option for security and low fuss. Set and forget. Management team are well drilled and no what there doing.
Negatives
The area I bought in has been slow for CG but is positive cash flow so not hurting me. Quite common in regional areas.
Management fee is a lot higher. Don't let that deter you. I can tell you I have a lot more headaches with my other property manager which is not DHA.
Be carful with rental reviews as they tend to drop the rent after the first year. But you can appeal it and get the same if not more.
Overall I like it as a set and forget investment. Great for People that have no idea as they do most the work for you. I wouldn't recommend buying from DHA with a lease inplace as these properties are generally priced over market value. Regional areas are going to be slower with capital growth. Im still learning, but when I look back on it I could have easily invested somewhere else and had far greater CG. If you need High rental yields, maybe look somewhere the CG might be better. DHA staff are quite helpful and easy to deal with. Do your figures to make sure it all adds up.
Hit me up if you have any more questions.
Cheers
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I put in an offer on a mid-lease DHA property a couple of weeks ago.
My original offer was 12% below advertised price and at the value I felt the property was worth, based on other properties on the market in the area. The vendor rejected any shift in price. I submitted a final offer 10k above my original offer. This was also rejected.
Property had been on the market for 6 months and had a couple of price drops in that period. It had also been advertised a few years back for 18% over the current asking price.
I checked sales figures around the time the property was built. I suspect value in that area hasn't moved in that time.
