Hi everyone,
Very new to this sort of game investing that is.
Just a couple of questions
Has anyone invested in defence force houses if so how good are they and have you had any trouble with them at all.
My wife and I are looking at them for an investment but I am not sure about the management fees (16.5%).
Which is a good state to start with??????
Thanks karlmI’ve had a quick look..OK if you are starting out and want an easy option..IMHO you can do better..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI have looked into DHA properties and yes i beleive the 16.5% management fee is too high.
Another note to mention about these properties is that the purchase price is infalted due to the fact of the guaranteed rent over 6, 9 or 12 years depending on the age of the property being purchased. Also the prices they are asking for are non negtiable from my investigations into them. However defence bases just wont dissapear and jobs are always being created for civillians, and in turn communities seem to flourish so probably not that bad as a safe option.
Again i beleive you can do better elsewhere.Hi Karlm,
Do a search on this forum, you’ll find some threads on DHA.
hrm
Defence bases have dissappeared – there are a whole lot less now than there were when I first joined up!
One area of real concern is the lack of flexibility with the lease – if you sell then you need to sell only to an investor. This market usually does not fall in love with a property and does not make offers based on emotion. What I am saying is that DHA investors I know claim the long lease actually has devalued their properety compared to others nearby.
The management fee is high but so are their standards. I know this as a one time occupant of DHA properties.
I think they are a great investment for someone who is quite worried about all the potential for disaster in being a landlord – someone who watches ACA and believes the stories will happen to them. If you are too nervous to own an IP otherwise then DHA is perfect. If you have no time or interest in running your investment you should also consider them.
Having said that – I wouldn’t consider them myself.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I have a DHA place in Canberra, held it for five years. I also own other properites in Canberra and two in Sydney (non DHA).
I have very happy with the purchase and I would buy another if the right deal came up.
Like buying any houses, you need to do your sums and make sure the property a value purchase.
I do not find the new DHA places financially attractive as other have noted the purchase price inlcudes a premium for the rent guarantee.
Where you can get the good deals is when a DHA owner wants to sell through the lease, and is forced to sell undervalue. This is how I got this property (our first) and we got it from an agent prior to it being advisertised.
Many of these deals come up in Canberra, maily on the south side. Like all property deals the more you look at the better (and luckier) you will get at it.
On locations, Canberra is extending there commitment here and I belive Townsville is also very good.
Good luck
Grant AY
TMR
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