Leases similar to DHA

[tcocaro]

People,

I am interested in finding out if there are any other organisations out there that do long term leases similar to that of defence housing australia?

I know that there is government housing but is there anything else? For instance has anyone heard of private industry doing such leases? Large corporations such as coca cola and the like?

Any feed back would be great.

I also would like to know if anyone has gone through the DHA with pre-approval? For instance if they where building a house has anyone been able to convinve defence to lease the property on completion?

Any feedback would be appreciated.


Cheers,
Timothy Cocaro

 

[agent007]

It's my understanding that companies in Gladstone, QLD are taking leases for 2 & 3 years. They're even leasing month in advance of tenants arrival.

Regards,

James.

 

[geoffw]

I've heard that Department of Housing in NSW do some similar.

But I wouldn't worry about DHA.

There's loads of stuff in the archives. But, basically:
1. You're tied in and limit yourself
2. If you buy well, you don't need that sort of guarantee
3. Management is double normal residential
4. You're limited in what you can do to the place.
5. If the rent is lower than market, you can't do a lot about it (mine was $60pw below, annual review and appeal brought it to $30pw below- you can do a lot of repaint & recarpet over 9 years for that money)
6. The market is limited to investors- so you can't realise full capital value of a house open to the other 95% of the market.

 

[G&K]

DHA similar leases

tcocaro,

GeoffW is right about DHA leases. As a member of Defence I have spent much time looking into them. Friends of mine have taken up leases just recently and one even pulled out after his broker advised that the cash flow wasn't real good (for a property in Brisbane). Some properties are offering 12year (+3 option) leases, see Darwin for example. If your conservative and want a low risk investment then go for it (but conversely a moderate risk of not getting the best from your money) . Your call. I am of the same opinion as GeoffW, if you buy well then you shouldn't need the security of the lease.

Another point to add to GeoffW, after lining in many DHA places over the years you find that many are literally slapped together. Some are not the highest quality. Remember, the tender to build them probably went to the lowest bidder! The house I just moved out of is on a great elevated block next to a really nice private residence. It is embarrassing to invite non-Defence neighbours into your house sometimes. I will admit it is near 9-10 years old but the construction is very poor. Can provide examples on request. Structural, building and pest inspections are a MUST. Try talking to the local DHA property manager (person who actually does the day to day management), not the person selling them and ask about the quality of the constrcutions.

Apologies for getting stuck into DHA, they are getting better...but as an investor, better returns are out there.

Finally, I also know that Canberra hospital (I think) has some leases on 1 and 2 bdrm units right next to the hospital. I have seen a couple on the market in Phillip (Canberra) over the past couple of years. Great for nurses working late shifts. Maybe try approaching a major hospital near and asking.

Hope this helps,
G&K

 

[phm]

Hi there.

Mines and construction companies lease executive houses (especially) for their higher level workers. Banks also have corporate leases.

Just check out their details. Some will do any repairs that the tenant causes, some will replace carpet, etc.

Perhaps ringing some of the bigger companies or commercial real estate agents might be a suggestion.