Hi
I can give you the Pros and Cons to purchasing a Defence Housing property as I own a few and also work at a company that specialises in the Sale of these properties.

PROS

Rent: Rent is paid in advance on the first day of each month, direct to the Lessor’s bank account. You do not ever miss a day’s rent which can be very comforting when you have to pay your investment loan each month.

Rent Review: Market rent – reviewed annually. Determined by an independent valuer. You do have the right as an owner to appoint you own valuer if you do not feel the DHA valuer fairly valued the rental.

Maintenance: Most day to day maintenance is co-ordinated and paid for by DHA, this is all so very comforting especially if you have ever had an investment property in the past that has had major tenant damage and have been left to be fixed at the Owners expense.

At Lease end: This is when the real value of the DHA lease kicks in – DHA will…
a. Repaint internally.
b. Ensure all appliances are clean and in good working order.
c. Ensure all floor and window-fittings are clean.
d. Ensure grounds and landscaping are in a neat and tidy condition.
e. Recarpet and replace vinyls, and re-polish timber floors, as required by the lease.
f. Repaint the external surfaces (that are not a body corporate responsibility).

There is probably in excess of $10,000 in make good expenses that are paid by DHA at the lease end.

CONS

Use of the Property: It is up to DHA who occupies the property, you do not get to "; screen" tenants or make you choice who lives in your investment home Your lease agreement is with DHA not the individual living in the property.  The property is to be used by DHA to accommodate personnel of the Australian Defence Force, and the Department of Defence.

Control of the Property: As an owner you cannot dictate " no pets"; etc. you cannot inspect the property more than once a year, you cannot carry out any renovations on the property during the lease period. Basically you can not disturb the tenant at any time unnecessary. You cannot take photos of the property showing any of the tenant’s personal effects.

Restrictions of the Lease: If you want to sell the property during the lease term is must be sold with the lease attached and all the conditions that go along with that. Leases cannot be broken (unless under extreme situations). Also if you want to sell during the lease term you cannot Auction the property or erect signage etc. No images showing personal effects, no open homes. You cannot advertise the address and all inspections of the property need to be keep to a minimum and organised through Defence Housing Australia which can be a little restricting at times.

All and All if you are looking for a long term, no fuss investment then it’s pretty hard to go past a property with a DHA lease attached.

I am more than happy to answer any queries regarding DHA properties:-

Defence Property Investments – http://www.defenceproperties.com.au. We specialise in the purchase and sale of Defence Housing Properties Australia wide. Email [email protected] for more information.