Has anyone had any experience renting to Go’vt departments?
A friend put us onto Defence Housing Aust. they look after everything for you, maintenance, minor repairs etc. they also pay 1 month in advance on the 1st of the month, but they charge 16% for this privelege.
all comments welcomeHi phil
i’ve seen the promotional material for the ADF housing, and although i haven’t looked into it on the surface it sounds great. Guarantee rent, no vacancies no repair bills all the hastles are taken out of it, all the risks are removed, sounds like a winner to me if you are buying for capital growth rather than cash flow.
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Phil, I’ve found that DHA prices are a bit inflated, and when selling, you are locked into an investor only.
There’s been a fair bit of discussion for pros and cons of this investment recently. Do a search for DHA, or Defence Housing and it should come up.
Cheers
MelHi Phil,
I also looked in to the DHA deals. The prices are quite hefty and you’d have to depreciate heavily to get anywhere close to +ve cashflow. As some are in regional areas I have heard that they occasionally all go on the market at the same time (after leases are finished) causing major headaches with the local market.
I did subscribe to their alert email and received an email about a property available in Burwood, vic a good suburb.
However when I clicked on the link to check it out, it was already gone.
So for the good ones you need to be really quick.
Cheers,
Sue [
]“Be careful not to step on the flowers when you’re reaching for the stars”
Hi
There was a good discussion on Defence Homes on the following
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=6295
[
]( I hope I get this link pasting bit right.You can always bypass the Defence as a prospect and search for other likely stable long term renters.
Many orgs like Banks, Retail outlets, Government Agencies change their Managers regularly in Regional areas and you can save the huge Prop Mgment costs assoc with defence. The trick would be finding something with staedy capital growth and also something that wasnt costly to always modernise.Regards
“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson
thanks for the replys so far, but to shed more light on the situation – we’re building a 4×2 near where we live, some friends in the area sugested DHA. We’re in Perth’s north and there is an air base rather close.
So Diclem I can’t see the same issues as if you we’re in an isolated town.
Melbear, when you say inflated prices your not talking about rent are you?
Originally posted by Phil:
Melbear, when you say inflated prices your not talking about rent are you?Nope, I was talking about purchase price if you were going to buy one. Are you looking to sell it to DHA, or just get them to rent from you? If you want them to rent from you, definitely check out fair market rentals in the area – that’s the other thing – rents increase with CPI, not with market forces.
Cheers
Melah huh, whats the diff. between CPI and market forces when it comes to rent prices? Is this good/bad?
I was thinking renting it to them.
Do they buy houses at inflated prices?[]Originally posted by Phil:ah huh, whats the diff. between CPI and market forces when it comes to rent prices? Is this good/bad?
I was thinking renting it to them.
Do they buy houses at inflated prices?[]Say CPI is 2% (RBA wants 2-3% per year). So on a $100 pw rental, you will increase by $2 per week. But if it was on the ‘open market’ you might have been able to get anywhere from $100-120. Can be a big difference, especially over a number of years.
I have no idea if they buy at inflated prices, but I do know that they have very strict ‘criteria’ for the houses they choose – you’d have to ask them I suppose.
Cheers
Melthanks Mel
I got brochure sent it to me every now and then but never have any experience with them coz look quite expensive at the moment
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Hi phil,
Somewhere on their main website, they have a link to leases.
They tell you exactly what they are looking for and where they need houses/flats to rent.
Cheers,
Sue []“Be careful not to step on the flowers when you’re reaching for the stars”
]
]( I hope I get this link pasting bit right.
]
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