Defence Housing- End of lease
- Thread starter geoffw
- Start date
the rental yield is currently 5% based on the asking price which is reasonable.
My concern is mainly on the capital growth once it comes out of lease. Though it will be available to the open market, could it have a stigma attached to it that its been a DHA property before? and how would I know if surrounding properties are also leased to DHA?
My concern is mainly on the capital growth once it comes out of lease. Though it will be available to the open market, could it have a stigma attached to it that its been a DHA property before? and how would I know if surrounding properties are also leased to DHA?
That's a fair point. It is possible that at the end of the lease, DHA may choose to extend for another three years. It happened for my property at the end of the first nine years, and that surprised me.
But, as it happened, I had an excellent valuation when I needed it most- one which probably ignored the limited market available. And they did almost extend again.
I'm ex military so I can give you a few clues to spot a DHA house and I also live in a street with quite a few:
The easiest way to spot them is:
All windows and doors have security screens.......unless it is a unit in the city I suppose.
Other requirements for a DHA house
Garden sheds
aircon
brick veneer
double garage (I think)
Another foolproof way of knowing: sit outside the house during the week between 6am and 8 am and look for the person in a uniform coming out of the house.
I'm ex military so I can give you a few clues to spot a DHA house and I also live in a street with quite a few:
The easiest way to spot them is:
All windows and doors have security screens.......unless it is a unit in the city I suppose.
Other requirements for a DHA house
Garden sheds
aircon
brick veneer
double garage (I think)
Another foolproof way of knowing: sit outside the house during the week between 6am and 8 am and look for the person in a uniform coming out of the house.
DHA always specified a brick letter box - if a place has anything else then it wasn't a MQ.
The place I'm looking at is actually a townhouse situated in a small complex. I'm quite certain that all the remaining townhouses are DHA leased also. However, Its in a good residential area and don't think the surrounding houses are DHA. I'll have a look at the suggestions given above to try to spot them.
I'm thinking the entire complex will come off DHA between 2-5 years therefore would still be a good buy as its asking around 100k below similar properties (Non DHA) in the area.
I'm thinking the entire complex will come off DHA between 2-5 years therefore would still be a good buy as its asking around 100k below similar properties (Non DHA) in the area.
Not true. DHA have very different standards depending on the area in which the houses are, and they also vary greatly within the same area. Housing entitlements are based on rank, and even within the same entitlement group there will be big variations within the same suburb.
My husband is in the ADF and our DHA house is one of the better ones for the area. We have no security screens on the windows, although apparently they are beginning to install them. We have no aircon or ceiling fans. We have a double garage, but many in this area don't. The house is brick veneer but none of the houses in our previous posting location were. And I'm not sure where you got the idea that garden sheds are a standard thing in a DHA residence. In all of the DHA residences I have ever lived in and visited, in various locations and for various rank entitlements, the only garden sheds have been the ones the ADF members themselves have installed. Maybe you got lucky.
I did see on the DHA website the requirements for houses for parties interested in commencing a DHA lease. They required a lot of inclusions that the majority of DHA houses don't have, so I'm not sure how it works in this situation.
I never lived in a DHA house as I was single and lived on base for 8 out of 13 years and the rest in my own home or private rentals.
A friend of mine was trying to get her IP accepted as a DHA house a few years back and got rejected for not having a garden shed, aircon and a few other trivial things, so I presumed that was a blanket requirement.
The house next door to my PPOR was up for sale about 8 months ago and apparently was looked at by DHA as a possible DHA house. As it needed new carpet, paint and alot of other things to bring it up to scratch it was rejected although only 5 years old. I wish they had though as anything would be better than the beverly hillbillies currently next door.
I have been told by the local agent (ex RAAFie) that there is a shortage of DHA suitable homes in the area and DHA were looking around for existing stock to add to their books.
A friend of mine was trying to get her IP accepted as a DHA house a few years back and got rejected for not having a garden shed, aircon and a few other trivial things, so I presumed that was a blanket requirement.
The house next door to my PPOR was up for sale about 8 months ago and apparently was looked at by DHA as a possible DHA house. As it needed new carpet, paint and alot of other things to bring it up to scratch it was rejected although only 5 years old. I wish they had though as anything would be better than the beverly hillbillies currently next door.
I have been told by the local agent (ex RAAFie) that there is a shortage of DHA suitable homes in the area and DHA were looking around for existing stock to add to their books.
Not true. DHA have very different standards depending on the area in which the houses are, and they also vary greatly within the same area. Housing entitlements are based on rank, and even within the same entitlement group there will be big variations within the same suburb.
My husband is in the ADF and our DHA house is one of the better ones for the area. We have no security screens on the windows, although apparently they are beginning to install them. We have no aircon or ceiling fans. We have a double garage, but many in this area don't. The house is brick veneer but none of the houses in our previous posting location were. And I'm not sure where you got the idea that garden sheds are a standard thing in a DHA residence. In all of the DHA residences I have ever lived in and visited, in various locations and for various rank entitlements, the only garden sheds have been the ones the ADF members themselves have installed. Maybe you got lucky.
I did see on the DHA website the requirements for houses for parties interested in commencing a DHA lease. They required a lot of inclusions that the majority of DHA houses don't have, so I'm not sure how it works in this situation.
I think a garden shed was a requirement only if there was a carport instead of a garage. Or at least it was when I was a soldier.
Great thread!
I'm looking at purchasing a DHA property through Colliers international (invest assured, Westpac Residential Portfolio). Looking in the Newcastle area.
Has anyone had dealings with this company? if so good/bad experiences?
I believe as long as due diligence is done when selecting an area they seem to be a sound investment i.e zero vacancy, guaranteed rent and restorations at lease end etc.
Thanks,
I'm looking at purchasing a DHA property through Colliers international (invest assured, Westpac Residential Portfolio). Looking in the Newcastle area.
Has anyone had dealings with this company? if so good/bad experiences?
I believe as long as due diligence is done when selecting an area they seem to be a sound investment i.e zero vacancy, guaranteed rent and restorations at lease end etc.
Thanks,
Buying DHA is up to the individual - you will pay more for the properties. Easy to do - just get your spec sheets and go to other builders in the area or makerters within the same estate to compare other house and land. What you pay extra for is the peace of mind.
Then your property management fees are way up there - twice the normal agents fees. Again, you are paying for peace of mind - and its tax deductible.
I think there is also a condition when you want to sell - that you have to sell with the lease in place - so if you needed to sell within the lease period - you couldn't sell to a private owner (you will need to double check this) My friend made some enquiries some time ago - but maybe they have changed.
Get your facts then make your decision - good luck.
E.g compare house and land: http://www.realestate.com.au/property-house-qld-north+lakes-105580944?activeSort=price-asc
DHA property: http://www.invest.dha.gov.au/dha/ho...ls.sok?ProductID=0Z1N2F5N4K3H5K9I8Q604Z240J15
Inclusions should be similar - same estate The Otulook - North Lakes
DHA house size: 167sqm
HandL house size: 208sqm
Land size - same.
Research, research and research...
Then your property management fees are way up there - twice the normal agents fees. Again, you are paying for peace of mind - and its tax deductible.
I think there is also a condition when you want to sell - that you have to sell with the lease in place - so if you needed to sell within the lease period - you couldn't sell to a private owner (you will need to double check this) My friend made some enquiries some time ago - but maybe they have changed.
Get your facts then make your decision - good luck.
E.g compare house and land: http://www.realestate.com.au/property-house-qld-north+lakes-105580944?activeSort=price-asc
DHA property: http://www.invest.dha.gov.au/dha/ho...ls.sok?ProductID=0Z1N2F5N4K3H5K9I8Q604Z240J15
Inclusions should be similar - same estate The Otulook - North Lakes
DHA house size: 167sqm
HandL house size: 208sqm
Land size - same.
Research, research and research...
I live in an area with a high number of DHA properties (just North of Newcastle, near RAAF base) and I am on first name terms with the local agent. If you get one, be absolutely sure you can keep the investment for the term of the lease arrangement because they are extremely difficult to sell on a few years into the lease period.
A suggestion is to go to an agent in a DHA area and you will find plenty for sale from the owners, some who are desperate to sell. You may get a discount off what you would buy new, directly from DHA.
If your interseted PM me and I will give you the contact details for the 2 agents in this area who have numerous DHA houses on their books, some with only a couple of years left, some with alot more.
A suggestion is to go to an agent in a DHA area and you will find plenty for sale from the owners, some who are desperate to sell. You may get a discount off what you would buy new, directly from DHA.
If your interseted PM me and I will give you the contact details for the 2 agents in this area who have numerous DHA houses on their books, some with only a couple of years left, some with alot more.
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