http://www.dha.gov.au/
- Thread starter bundy1964
- Start date
Hi Bundy,
well although the fees seem high, they include management, maintenance fees (incl. repairs of fixed appliances if they did fail, leaks, etc), guaranteed rent for the specified period (ie. may get a 6 or 9 year lease which goes up with CPI), etc... But the most interesting thing you get out of a DHA house is that once the lease is over & u get your property back, they will:
* Repaint internally & Externally
* Ensure appliances are clean & in working order (otherwise they would be replaced)
* Ensure floor & window fittings are clean
* Recarpet & replace vinyls and re-polish timber floors (normally part of the lease)
* Leave the gardens neat & tidy
* The DHA collects the rent & deals with all manintenance requests (you wouldn't hear from them)
* All these are things you get with the extra management fee you pay (ranging from 12-16.5%)
BUT if you get into one of these leases make sure you pay the correct price (based on your own valuation) as many of these homes may have a premium on price due to the guaranteed rent being considered... Also ensure the DHA home is in an area that has historically experienced good capital growth (I know of some good DHA homes in beachside suburbs of Melb, which have gone up substantially in the last couple of years, ie. Williamstown)...
I hope this helps, but if I recall, there were some earlier posts re: this topic & you may find additional information...
Cheers,
MannyB.
well although the fees seem high, they include management, maintenance fees (incl. repairs of fixed appliances if they did fail, leaks, etc), guaranteed rent for the specified period (ie. may get a 6 or 9 year lease which goes up with CPI), etc... But the most interesting thing you get out of a DHA house is that once the lease is over & u get your property back, they will:
* Repaint internally & Externally
* Ensure appliances are clean & in working order (otherwise they would be replaced)
* Ensure floor & window fittings are clean
* Recarpet & replace vinyls and re-polish timber floors (normally part of the lease)
* Leave the gardens neat & tidy
* The DHA collects the rent & deals with all manintenance requests (you wouldn't hear from them)
* All these are things you get with the extra management fee you pay (ranging from 12-16.5%)
BUT if you get into one of these leases make sure you pay the correct price (based on your own valuation) as many of these homes may have a premium on price due to the guaranteed rent being considered... Also ensure the DHA home is in an area that has historically experienced good capital growth (I know of some good DHA homes in beachside suburbs of Melb, which have gone up substantially in the last couple of years, ie. Williamstown)...
I hope this helps, but if I recall, there were some earlier posts re: this topic & you may find additional information...
Cheers,
MannyB.
One other thing you get with DHA. They pay the water rates (well, I haven't sent them my five years of water bills yet, but they've said they will).
On the minus side.
. You do not have control. My place is a 3BR with a large rumpus. The tenant, when I first inspected the house, did not like the big living area. When I suggested to DHA that I convert the rumpus into a bedroom, I was told that it was not possible- it would change the classification of the property. A 3BR house with an en-suite is a higher classification than a 4BR, where an ensuite is a necessity rather than a desirable option.
.The rent on my place (ACT) is $250pw. I had a valuation from a real estate agent a little while ago. He told me that he manages an almost identical hiuse across the street. He gets $320 pw for that. I'm told that DHA will adjust rents to market if you can prove that the rent being paid is below market- but you have to wait until the annual rental review time to do it.
On the minus side.
. You do not have control. My place is a 3BR with a large rumpus. The tenant, when I first inspected the house, did not like the big living area. When I suggested to DHA that I convert the rumpus into a bedroom, I was told that it was not possible- it would change the classification of the property. A 3BR house with an en-suite is a higher classification than a 4BR, where an ensuite is a necessity rather than a desirable option.
.The rent on my place (ACT) is $250pw. I had a valuation from a real estate agent a little while ago. He told me that he manages an almost identical hiuse across the street. He gets $320 pw for that. I'm told that DHA will adjust rents to market if you can prove that the rent being paid is below market- but you have to wait until the annual rental review time to do it.
The maintenance fee is quite high and they do very little for it.
I have DHA property and have been asked to pay for a new door handle, broken shower screen (insurance), repairs to a leak from a shower through the wall (peeling paint), tree removal and the list goes on.
They also have a clause that says they are not responsible for any maintenance covered by a strata title, so I really wonder just what their maintenance responsibility is.
I'd be interested to hear maintenance issues from others.
Flex
I have DHA property and have been asked to pay for a new door handle, broken shower screen (insurance), repairs to a leak from a shower through the wall (peeling paint), tree removal and the list goes on.
They also have a clause that says they are not responsible for any maintenance covered by a strata title, so I really wonder just what their maintenance responsibility is.
I'd be interested to hear maintenance issues from others.
Flex
I’ve had no problems with maintenance. Roof tiles and consequential damage has been repaired. They’ve put in a dead lock at the tenant’s request. And they’ve paid for repairs to a bad landscaping job. None of this has cost me. I’ve had it five years. I paid for landscaping (I knew that when I bought it). I have not paid for anything else.
It may just depend on the particular manager.
One other thing which I forgot to mention. The property is worth substantially less than an identical non-DHA one until the lease is up, My last appraisal put it at $290K- but it would have been worth $320K without the DHA lease. The reason is that it is only for sale to other investors- 90% of the potential market is excluded.
It may just depend on the particular manager.
One other thing which I forgot to mention. The property is worth substantially less than an identical non-DHA one until the lease is up, My last appraisal put it at $290K- but it would have been worth $320K without the DHA lease. The reason is that it is only for sale to other investors- 90% of the potential market is excluded.
Heres a suggestion for you.
You give me the $50k or so they overcharge you for ANY property you want - up to $1m, and I will:-
IRON CLAD GUARANTEE YOU AN EXTRA $10 PER WEEK per $100,000 (ie $50 = $500,000 purchase price) FOR 7 YEARS!!!!!!!!!!
AND ILL REPAINT AND CARPET FOR YOU!!!!!
How good is that deal?????
You give me the $50k or so they overcharge you for ANY property you want - up to $1m, and I will:-
IRON CLAD GUARANTEE YOU AN EXTRA $10 PER WEEK per $100,000 (ie $50 = $500,000 purchase price) FOR 7 YEARS!!!!!!!!!!
AND ILL REPAINT AND CARPET FOR YOU!!!!!
How good is that deal?????
