Hi all

interesting move by the bank to invest here and I agree that the rental returns aren’t enough alone to drive this move.

I own a DHA property myself, have done for a couple of years now and have owned a DHA property in the past also.
To clear up the missconception of saleability; you do own the property outright and have the right to sell to whomever you may but you must sell it with the lease to DHA in tact and if there is an option for extending the lease built into the contract then DHA have the say on whether they will take this option up or not… not you; therefore the term of the lease may be longer than you think.

i suppose the real trick is, as always, to invest wisely in areas where there is good growth. Townsville has been my target since getting into bed with DHA and the properties have grown very well; 15% last year alone.

I also never buy properties direct from DHA but buy on the open market [ DHA premium load the property price based on the guarantee of continuous income ] saving 5 -10% on purchase price. Simply look into who is building for DHA and buy from them direct, you often get a home with superior specs and built to the satisfaction of DHA ( they have many requirements )

The 16.5% comission does seem high but consider that at the end of a 9 year lease DHA will paint the proprty inside and out, and fully re-carpet it at not cost to you. This combined with no outgoings for repairs / maintenance for 9yrs is I think a good deal.

And finally, I agree that the sale of these properties with a lease attached does limit the achievable price but the trick is not to sell prior the lease expiring.

Steven Thompson