Dept of Defence, anyone had dealings with them???

C

csc

ive come across a gem of a house this arvo...its currently locked into a lease with an option with the dept of defence for another 5 years plus...

The current owner is keen to bail and settle his divorce hence the price is way undervalued even in this market.

Any outs for a lease like this or stuck with the current contract??

Almost impossible unless the Defence wants to break the contract as a mutual agreement I feel.

I would snap this house up in an instant if there was a way to sort it out...About $120k undervalued.

Any thoughts most welcome on how to plan my attack...so to speak. :)

Something tells me ill be shooting blanks (no pun intended)

cheers
 
Hi csc,

Any reason you cannot proceed and leave the existing Defense lease in-place?

They are pretty good with guaranteed zero vacancy, maintenace etc and will restore at end of lease.
 
Propertunity said:
Hi csc,
Click to expand...

yep..i want to move into it for a bit...ive sold pretty much all of my property except interstate interests..

and im not a renter .. its not in my gene pool :)

for sure its ideal as an investment but the property is way to good to have govt dept renting it ...they are stealing it at current market prices for rentals..5 bedder, upmarket house with pool etc, lowset brick, 5 yr old...$450 week the bludgers are stealing it for......id struggle to get them out even if the place was trashed at that price.

maybe less of a headache to just move on i think...

cheers
 
The only other option I can think of is IF the Defense ppl are pulling out of that particular area and relocating somewhere else (happens from time to time) and the property was going to be surplus to requirements. Bit of a long shot (if you'll excuse the pun)
 
Wow... sounds like a killer deal.

I have 1 property currently with the DHA and at first I didn't like the idea but now I love it! probarbly because the option is almost up, if it were years to go then maybe not.

Its the one property that has paid for itself from day one and I never have to worry about.

The 'options' DHA have are pretty scary though.. if you plan to sell then it is harder to do so as your only audience are investors.

But overall I do like the certainty of no vacancies and repairs taken care of.
 
Hi Csc

There was a thread laying around here somewhere explaining that the annual rent
could be appealed,but can't remember when it could be appealed, i.e.
yearly or on the option being exercised.

Cheers

Pete
 
want2bewealthy said:
Wow... sounds like a killer deal.

I have 1 property currently with the DHA and at first I didn't like the idea but now I love it! probarbly because the option is almost up, if it were years to go then maybe not.

Its the one property that has paid for itself from day one and I never have to worry about.

The 'options' DHA have are pretty scary though.. if you plan to sell then it is harder to do so as your only audience are investors.

But overall I do like the certainty of no vacancies and repairs taken care of.
Click to expand...

yep part of the contract clearly states that any damage etc will be taken care of promptly and professional by qualified trades people.....

yep no vacancy, the money still rolls in..

what ticks me off though is when i did a quick search today there are 3 other defence owned properties not leased as this one that have been vacant for 6 plus mths..
absolutely no chance of the defence moving on from this area, shoalwater is just up the road and the yanks are building a big DSU type unit in rockhampton to handle logistics better during exercises..

ill call the dept of defence tomorrow and see if there are any options available if i purchase..i do know another house they could rent actually, comparable in size but different part of the city...you can only ask..

the owner feels there is no chance but hes a quiet guy who doesnt push buttons like i do to get doors open sometimes..

c what develops..and will advise over the next day or two..

cheers
 
Always strike me as "interesting" that a new owner of a property must comply with the previous owner's agreements.
Maybe that's why it's cheap as all other prospective buyers are just thinking
"shove that, I ain't buying a property to own and not have a say in it".
What gives someone who rents ownership over a property is still beyond me.
I suppose you could always try the "vacant possession" clause.
 
Piston Broke said:
Always strike me as "interesting" that a new owner of a property must comply with the previous owner's agreements.
Maybe that's why it's cheap as all other prospective buyers are just thinking
"shove that, I ain't buying a property to own and not have a say in it".
What gives someone who rents ownership over a property is still beyond me.
I suppose you could always try the "vacant possession" clause.
Click to expand...


It has more to do with the fact that the vendor is locked into a contract which does not allow them to sell to anyone who isn't willing to continue with the same lease. One of the trade-offs in signing up with DHA.

Personally I don't think DHA is a bad option, but you do have to be aware of the drawbacks and understand that resale whilst in contract can be extremely difficult because many people don't want to lock themselves ino something that long-going.
 
There's been a lot of threads about Defence Housing properties (including a number from me- I have one). It's worth spending time tonight to check them out, before you see them tomorrow.

But I suspect the contract with Defence is pretty watertight. I suspect that you will find that there is zero opportunity for you to move in until the end of the contract.

Hence the lower price. It's only of interest to investors, not owner occupiers.
 
I also might add, you can indeed find great deals with these properties as not many want to buy them, sellers get scared, you get a great deal and make money from the start.
 
im expecting a call later today about it....

i dont need another investment currently, just a house to live in for awhile until we decide where we are heading next five years with business.........im not renting thats for sure
 
The reason it is cheaper is because, as you have found, it is locked into a long, cheap rent lease. Many DHA leased properties are expensive for their rental income because they are seen by many as "no risk" IPs and hence valued more highly.

The long leases also restrict resales to investors, many of whom at the moment are in the "wait and see" mode.

Unless you want an IP I think you will have to look elsewhere as these leases are usually cast-iron solid.
Marg
 
Of course it may represent a good opportunity for an investment, as an investor does'nt want to live in it.
The low yield, or higher price is only a product of the boom.
Prices were much lower, and rents higher a few years back. I have their mailouts somewhere.
May be worth an expedition around those DHA areas.
 
Feedback received from the guy handling all of Qlds defence housing leases said there will be little chance of them wanting to pull out of the lease for this property.

He said they are happy for it to stay vacant for 12 mths if required as they use the property on short term occasions for top brass. Usually a two-three month stint per year but it varies.

3 years left on current lease plus an option for another 5 years ive found out...mind blowing if its not being utilized properly.

Damm shame that!

Thats one expensive lease the dept has not been utilizing..

Rent has just gone up to $485 bucks a week so the owner is getting slightly a better deal now..house being used a max of 8 weeks a year last two years..unreal to say the least..rest of the time its vacant but mowed and hedged each fortnight as required...

Typical waste of taxpayers money I will be sure to mention to the Federal member...........

How many others out there in the market like this wasting money one can only ponder..

Damm, damm, damm! a gem im missing out on to live in.....
 
lol it ain't cheaper then booking hotels and avoids their riffraff.
I would avoid hotels & short term accomodation at all costs in their position too.
If you dont want it pls pm me the details so I can have a squiz at it.
 
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