From: Geoff Whitfield
My apologies for posting this as a new topic. There have been numerous threads about Defence Housing before- but this is a new slant which may get lost if I replied to a retired (or tired) thread.
I have a 3-BR property in Canberra (my first IP from 4 years ago).
The living area is huge. It was already big before the previous owner converted a 2-car garage to even more living space. The tenant suggested to me, when I bought it, that the living area was too big, and that he had to buy more furniture just to fill the space.
So, my brainwave (duh, very slow- 4 years later). But now I can see that I could increase the equity by some reasonable amount by converting the ex-garage to a bedroom, without incurring a huge cost. Owner happy, tenant happy.
DHA not happy.
The house is classed according to tenants' needs according to criteria such as bedrooms, living space, separate family/lounge areas etc.
If I closed a little of the surplus living, then that changes the classification. So the tenant (same tenant for 4 years) may not be qualified for the house. Over or under qualified- it could be either. For instance, with a 3BR house, an en suite lifts the place from "B" to "C" rating (which is better). But for a 4BR, an ensuite is a necessity rather than a luxury. So that may downgrade the grading- and force DHA to down the rent. Or upgrade- who knows? They can't tell me.
Just a warning for any who may see potential to improve a DHA property.
My apologies for posting this as a new topic. There have been numerous threads about Defence Housing before- but this is a new slant which may get lost if I replied to a retired (or tired) thread.
I have a 3-BR property in Canberra (my first IP from 4 years ago).
The living area is huge. It was already big before the previous owner converted a 2-car garage to even more living space. The tenant suggested to me, when I bought it, that the living area was too big, and that he had to buy more furniture just to fill the space.
So, my brainwave (duh, very slow- 4 years later). But now I can see that I could increase the equity by some reasonable amount by converting the ex-garage to a bedroom, without incurring a huge cost. Owner happy, tenant happy.
DHA not happy.
The house is classed according to tenants' needs according to criteria such as bedrooms, living space, separate family/lounge areas etc.
If I closed a little of the surplus living, then that changes the classification. So the tenant (same tenant for 4 years) may not be qualified for the house. Over or under qualified- it could be either. For instance, with a 3BR house, an en suite lifts the place from "B" to "C" rating (which is better). But for a 4BR, an ensuite is a necessity rather than a luxury. So that may downgrade the grading- and force DHA to down the rent. Or upgrade- who knows? They can't tell me.
Just a warning for any who may see potential to improve a DHA property.
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