Defence Housing in Darwin

[Anonymous]

From: Anonymous


This is my first time on your forum site and I feel a little nervous. I have just placed a deposit on a 3 bedroom house in Fairwaters Estate Durack ( Palmerston ) which is 20 mins out the Darwin CBD. The property cost me $237,000 for a 1000m2 block and a 1998 constructed house.

The house is leased back to the Defence Housing for 12 years with a rental yeild of 6.94%. I have read with some interest that DHA is now promoting Darwin as a ' blue chip ' location offering free flights etc to inspect properties.

I am an interested in getting some feedback from any buyers of property in Darwin and how they found it. Obviously, I am looking at long term growth and I hope that in 10 years it may be worthwhile....

I am also a first time investor with little or no experience in this area. I would love some advice and ' encouragement from those people who have enjoyed success.


Thanks....Novice punter

 

[WebBoard]

Reply: 1
From: Robert Kerr


Probably a little old by now for a reply but nonetheless..
I bought my 1st DHA property last year and after much soul searching feel that I may have paid too much for it, the ongoing fees are quite substantial and the capital growth has been disappointing.

Having said that I am still glad I bought it and took the plunge, I still think long term it will work out OK.

 

[Anonymous]

Reply: 2
From: Anonymous


Be prepared that Defence Housing rental review may mean less rent not necessarily more rent. They review to current market value and this apparently has meant a drop in rent in Darwin in the last 12 months - which of course means less return. Usually Defence properties are over valued and it is often better if you want to rent to them to find your own property that meets their needs and negotiate from there. This at least means you are not paying overly inflated prices. "Free" flights are never free. All property developers will advertise their goods as "blue chip" so don't be fooled by the name "Defence Housing" they are developing a lot of property over Australia and selling it. Good luck with your venture, I don't mean to be a wet blanket but don't take anything they say at face value - I have learnt over the past 15 years that they are only out to feather their own nest. The old rules still apply - research, research, research.

Diane