Defence Property

From: Lucinda Hudson


Hi

I have been looking at the defence properties and they appear to be a good investment ie rent pretty much guaranteed for 12 yrs and no tenant hassles. They will also allow me to purchase outside of my state (WA) without too much difficulty.

Has anyone had any good/bad experience with these properties?

Lucinda
 
Last edited by a moderator:
W

WebBoard

Guest
Defence Properties

Reply: 1
From: Cecelia Palmer


This is a multi-part message in MIME format.

------=_NextPart_000_0012_01C1E48D.847709C0
Content-Type: text/plain;
charset="Windows-1252"
Content-Transfer-Encoding: quoted-printable

Hi Lucinda,

My husband is in the Navy and we live in a defence property. We too =have looked at buying these as investments as the rent is guaranteed for =the term of the lease back - even if the property is not occupied and =the Dept returns the house to you at the end of the term in as new =condition. The only thing that was a concern to us was

1. The location - not all of the houses are located in prime areas - =some are - our house was sold to an investor when we moved in for $460k =5 years ago and the house next door recently sold at auction for $540k

2. The Purchase Price - my research into some of the suburbs indicated =that you are paying top if not inflated prices for the property and I =believed the main reason is that the property is painted, new carpet, =landscaped, new electrical appliances etc upon return - depending on the =length of the sale back - the amount of the work carried out.

3. The agents fee through the Defence Housing is also higher than what =you would normally pay and any maintenance carried out on the property =is completed by their contractors - which could be good or bad - no room =to negotiate with your own contractors - not negotiable.

If you want to know any more...drop me an email.....I hope this helps =you.....Cecelia

------=_NextPart_000_0012_01C1E48D.847709C0
Content-Type: text/html;
charset="Windows-1252"
Content-Transfer-Encoding: quoted-printable

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">







Hi Lucinda,

My husband is in the Navy and we live =in a defence
property. We too have looked at buying these as investments as the =rent is
guaranteed for the term of the lease back - even if the property is not =occupied
and the Dept returns the house to you at the end of the term in as new
condition. The only thing that was aconcern to
uswas

1. The location - not all of =thehouses are
located in prime areas -some are -our house was sold to an =investor
when we moved in for $460k 5 years ago and the house next door recently =sold at
auction for $540k

2.ThePurchase =Price- my
research into some of the suburbs indicated that you are paying top if =not
inflated prices for theproperty and I believed the main
reasonisthat the property is painted, new carpet, =landscaped, new
electrical appliances etc upon return - depending on the length of the =sale back
- the amount of the work carried out.

3.The agents fee through =the Defence
Housing is also higher than what you would normally pay and any =maintenance
carried out on the property is completed by their contractors - which =could be
good or bad - no room to negotiate with your own contractors - not
negotiable.

If you want to know any more...drop me an email.....I hope this helps you.....Cecelia =

------=_NextPart_000_0012_01C1E48D.847709C0--
 
Last edited by a moderator:
Reply: 2
From: Geoff Whitfield


There's many posts on the forum- search for DHA or Defence.

Just repeating what I've said before (fwiw.

I've had a property for 4 years. It gained very little for 4 of the last 5 years, because I did not know much then, and chose a location without a big prospect. I probably paid higher than average as well.

Pluses. Reliable. Professional tenants, Good inspections, I've had no extra to spend on routine maintenance.

Minuses. Higher price; lower valuation during life of lease (people want houses for themselves than for tenants- my place was valued at $220K as DHA, but $230K if vacant); higher management.

You don't have to buy a property from DHA (at least you didn't 4 years ago). It was possible to buy a property, and as long as it fitted in with their criteria, they would lease it. Minimum criteria was almost new. Contact them and ask. It is one way to get over one or two of the disadvantages.
 
Last edited by a moderator:
Reply: 2.1
From: Lucinda Hudson


Thanks very much

I am searching now

Lucinda
 
Last edited by a moderator:
Reply: 2.1.1
From: Jeremy Laws


Without question you are paying for your rental return in the purchase price. Also a property should be able to double its rent in ten years. You will have a small win in the first few years, then they will have a win in the last few years. DH have very clever actuaries and extremely complex computer programmes to make sure they get a good deal. With so many properties out there, why do you need to bet against them?
 
Last edited by a moderator:
Top