Has anyone purchased a property from Defence housing Australia, they sell new prperties and lease them back for 6-10 years. What do you think of their prices, I was thinking of buying from them but after researching i get the impression that their prices are a bit higher than buying through an agent in the same area. anyone agrees/disagrees.
I agree with you 100%. They say long leaseback, CPI increase in rent etc,, but we pay high price to purchase. Their prices are much higher than the market value so it is not really a good deal, isn’t it. They are offloading their properties and leasing back to defense members.
I would suggest you do a proper sum before comminting in these of schemes.
Ta, Paul
Hi
DHA houses are definately overpriced at the moment.plus they charge around 13% management fee as opposed to 5% normal REA fees.you are also contractually required to keep it up to a certain (high)standard. The thing that attracts investors is the security of tenacy,they pay whether it is occupied or not.They were a very good deal about 5 years ago but not now.
JoffHi NewToPi. I’ve also heard that with DHA houses, you dont get a final say on all issues, such as repairs. They send their own team in to fix things and their fees are quite expensive. Not 100% sure on that, as I said, just something I heard but something else to think about.
Regards
MartyThe DHA properties are definitely overpriced due to the sale/leaseback arrangements.
If you buy a house yourself that meets their criteria, you can actually have them lease it off you under the same arrangements without having to pay the inflated purchase price!!!
Better option if it’s the leaseback that you’re interested in – not guaranteed I suppose, just an option to explore!!
Cheers!!!
Hi Newtopi,
I brought a DHA house 18 mths ago. Brought it from another investor. So it’s was not over priced. But if you buy directly from DHA, then expect to pay 10 to 20K over market price .Management fees are 16.5%, which is pretty steep but they repair/handle all repairs at no further cost.Rent is reviewed every 12mths(DEC). The house I brought had another 5yrs to run with an optional 3yrs.P.S..house has appreciated $170K in 18mths..[
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