Recent article in the paper suggesting these homes are a good buy as they have continous rental agreements. Anyone had any experience with these ? r they ” no go’ or worth the long-haul? Particularily interested in the ” exit-strategy’.
DHA houses have good long term security of tenancy, however thay are (in my opinion) overpriced for what they are… you need to do the figures on the deals… but most DHA are strongly negatively geared… so it depends what you want, cash flow or secure leases.
If you are a first time investor who pays lots of tax and wants a secure rental stream, then they may suit you, otherwise look at other houses in the area and compare the prices for what you are getting.
My brother in law rented his place to DHA, so if you have a relatively new house that meets thier criteria then you might be able to rent it to them… in other words try to find a bettter deal (buying wise) and approach them to see if they would rent the property from you… get the best of both worlds[biggrin]
They do a minor refurb on vacating/ending the lease, but thier PM fees could be a bit steep.. check them out and the conditions they offer, they have a website
Steve Kerr
Opportunity knocks softly, listen carefully!
you are usually locked in to lower returns for a good many years. yes the rental is guaranteed for that time and from what I have seen of their inspections and so on, they are very keen!
I personally feel it isnt for me.
They do replace curtains and carpets etc too…( i think they still do)need a pretty nice house for them and that usually has to be near a base, and those are normally expensive as already stated. A big layout for this guarantee of rental for x number of years. stuck.
” a blind man may see what a sighted man may not”
From memory, their management fee is about 16% which is high, but includes all maintenance expenses. So you know where you stand all the time, no surprises.
I believe they actually factor in the long term lease (usually 6 or 9 years) into the purchase price, that is, its higher than just the property alone would be priced at. Keep this in mind.
John [biggrin]
(I believe that later this year there will be no +CF deals left in NZ, so I’ve moved here to invest full time. I can find +CF deals for your NZ portfolio for a fee, just email me [email protected])
Hi all,
Regular rent reviews does not mean the rent always goes up – I know of peole who have had their rents reduced in line with market rents.
Agreeing with Tasman – property management fees are around 16%.
Derek
[email protected]Read my comments? Think I can help you? PM or email me.
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