Can someone (in the know) offer some sound advice as to weather investing in a Defence property (home or unit etc..)with a long term lease is worth considering? given the long term leasing options available…..not really sure about depreciation on these properties as defence must re-carpet, paint etc…at expiration of their lease.
We are new to positive cashflow properties and are not sure we should or shouldnt devote any precious time on this specific matter[dazed].
Looking mainly in the Canberra/Queabeyan area as a starting point.warm regards to you all.
Boris&Elizabeth (Canberra)
BB
Hi BB,
Not a big fan of Defence Housing but a number of people use them as their launching pad.
Recommend a search of the forum using ‘DHA’ and/or ‘Defence Housing’ – the search facility is accessed through the search button located immediately below the ‘forum boards’ button. Top left side.
Derek
[email protected]Property Investment Support Available.
B&E,
I have 1 DHA property – my first IP. I’ve been really happy with it as an entry into investing, because it was so little hassle.It has worked very well for me: I am fairly happy with their rent valuations, and they always pay on time. There are very few costs for any kind of maintenance.
I had a quantity surveyor do my depreciation schedule; no reason why you can’t depreciate carpets – even if they will be replaced later is there? I get some pretty massive tax deductions on my IP’s.
Would I buy another DHA place? Probably not, but mainly because most of them now are yielding too low – things were different 4 years back. I prefer now to be a bit more specific in what I buy. But I have absolutely no regrets about buying the one I did – it’s been completely hassle-free, CF neutral (after tax deductions), and some great capital gains. And I can be fairly certain to get it back in top condition when they finish the lease.
Cheers,
MickHi Brindabella,
do not waste your time with DHA properties, I have one. I complained already twice and it is joke how they deal with customer complaints. I will call them again tomorrow and keep you posted.
Cheers,
Penguinchick[angry2]Re: Mick’s question on depreciating the carpet.
If you buy a DHA property and it is carpeted, you are paying for the carpet so you can depreciate it.
If at the end of the lease the DHA replace the carpet, this would be at their expense, not yours, so you could not claim depreciation.
Similarly any maintenance they pay for during the tenancy is at their expense.
You’d have to guided by your accountant on this one, but that’s my understanding. Julia will correct me if I’m wrong.
Scott
Tax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.auHi Penguinchick,
I am just interested in what sort of problem you are having with your DHA property? I was wondering if there might be different/usual types of problems to look out for with these types of investments….
Thanks, and good luck,
Sue [hair2]“Be careful not to step on the flowers when you’re reaching for the stars”
Hi Sue,
my problem relates to yearly market avaluation of rent.My case will be looked at again by DHA and I will let you know when outcome is known.
Cheers,
Penguinchick
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