Defence Housing

[WebBoard]

From: Mike .


Defence Force Housing Investments
From: Sam
Date: 02 Sep 2000
Time: 11:51:53

Kevin (or anyone else),

Where can I get info on DHA investing, please?

Sam

 

[WebBoard]

KevinB

Reply: 1
From: Mike .


Re: Defence Force Housing Investments
From: KevinB
Date: 03 Sep 2000
Time: 12:57:41

Try http://www.dha.gov.au

 

[WebBoard]

Terry A

Reply: 1.1
From: Mike .


Re: Defence Force Housing Investments
From: Terry A
Date: 12 Sep 2000
Time: 22:54:23

You will do better looking in the newspapers for houses with a DHA lease as you can buy the houses at market rates whereas DHA prices the houses at a premium over the market and the lease also has a 15% commission. Read and understand the lease document very carefully. Do your number crunching as well in light of your financial situation.

No I am not against DHA, I own DHA leased IPs and am doing very well.

 

[WebBoard]

Bob

Reply: 1.1.1
From: Mike .


Re: Defence Force Housing Investments
From: Bob
Date: 13 Sep 2000
Time: 07:27:42

I agree with what you say as far as it goes but the problem that I've struck is that I've only ever seen one DHA property with a greater than 7% gross return.

That one was being marketed by DHA directly (and was withdrawn before sale!).

 

[WebBoard]

Terry A

Reply: 1.1.1.1
From: Mike .


Re: Defence Force Housing Investments
From: Terry A
Date: 16 Sep 2000
Time: 12:09:24

Hi Bob,

Yes you won't get a high rate of return buying direct from DHA. I bought one privately on the open market 3 years ago at a yield of 9% and am about to settle on another with a yield of 7.8% with a rental review adjusted to the CPI in two months time which will hopefully push the yield to 8%. As I said you pay a premium buying direct from DHA. Keep your eye on the classifieds and one will come up. Look in areas where Defence have bases and I am sure you will find some. In my area they come up about once a month.

 

[WebBoard]

Bob

Reply: 1.1.1.1.1
From: Mike .


Re: Defence Force Housing Investments
From: Bob
Date: 18 Sep 2000
Time: 06:57:51

In my area they come up most weeks, but they're sold as "Secure investment! DHA tenant..." and when you do the legwork, the contract has 2 years to go, while the gross return is at best in the low 6%s.

 

[WebBoard]

Terry A

Reply: 1.1.1.1.1.1
From: Mike .


Re: Defence Force Housing Investments
From: Terry A
Date: 20 Sep 2000
Time: 01:54:04

Yep the returns are about 6% based on the asking price so work out what price you are prepared to pay that gives you a better return and make an offer. Be realistic though if your offer is way below market for a good quality house your offer will be rejected and there will be a lot of seller resistance to having anything more to do with you.