Vikaris,
See, there seems to be little risk. Have you had any of your investments trashed. I have. Six months to fix and $49k of work. Obviously I was not out of pocket this much as I am not a large risk taker, but it is frustrating when a tenant does this, especially after being in the place a couple of weeks – he could of waited 6 months to trash it. With a DHA place, this risk seems to be minimal.
I understand that some people feel diddled by low rents, but I feel this is also a risk, and if you not happy don't sign the contract or purchase the house or renegotiate the conditions of lease, etc.
Bearing in mind I do not own a DHA leased house, so I am speaking my opinion from the grape vine. If I am wrong, please inform me, so I can adjust my opinion accordingly.
Thanks,
JLfor me i would steer clear of DHA investing. My father (conservative investor) bought into one in 1992 at salamander bay just north of Newcastle mainly based on the long lease and yeild but what happened when he tryed to off load it.. 12months to sell, capital gain basically O, I told him to buy a terrace house in surry hills sydney for 100K (less than the defence house back then)with about a 8% yeild at the time, the same terraces are selling for 1million plus now. He could have had 5 or 6 Million dollar terraces by now in a very good rental area. Be careful where you park your money, buy quality assets in high demand and you cant go wrong.
Just my opinion hope it helps
This is great info.
I was looking at DH about 9months ago, caught my eye.. although something about it just didnt fit and to mention the ones here in port adelaide arent cashflow positive, as most of them arent anyways. Cheers for the insight to how brutal the DFA can be, as some people on here have mentioned its been great for them… but by the sounds of it… its definitely a big risk.. it would be ignorant of me to think that it would be all peaches and cream. its definitely turned me away from them for now.
Hei JL…
Go back to our previous discussion..
You mentioned that they get paid minimal… do you know that the money they earn IS TAX FREEEEEEE….
So you have to factor in 40% tax and free/subsidy rent…. Helping them.. you must be kidding…Secondly, you mentioned that your property being trashed… did you do risk management? did you select your own tenant?
did u use a good rental agency? and the last DID YOU BUY LANDLORD INSURANCE etc????Sorry DHA is semi-property spruiker….blood sucker…in my opinion.
The property location that they advertised.. most of them are dud….with probably minimal growth or ZERO ..
I rather put my money in term deposit earning 9% or bonds earning 11% rather than investing in dud property…God
Firstly I'd like to point out the salary Defence members get paid is not tax free. Yes we do get subsidised rent, but so do many other individuals. I can certainly say that the money I get paid including all those 'bonuses' is not much greater than someone in the 'real world' in the same career. But then I don't serve for the money!
Secondly, all tenants are defence members. make what you wish of that. However, all damage is rectified by DHA and you still recieve rent while it is being repaired.
Oddly enough, all DHA houses are located where Defence bases are nearby. Whether that is in a good capital growth area or not varies. For example, many properties are just being released in and around Ipswich… you can't say there hasn't been growth on those properties.
Whilst I personally wouldn't invest with DHA, it doesn't mean that their product isn't right for someone else.
Do your research before you make a decision about DHA, and before you make comments about what defence members do or don't get!
Hang on atevans..
What is that about advertisement .. JOIN DEFENCE FORCE… and earn salary TAX FREE…????
Published so often in Sydney Morning Herald..
I 've certainly seen the adds….I do apologise if it is not applicable to all the defence force members…
Hi God,
That would be the reserves – not full time defence. If you are deployed overseas in warlike conditions, your pay for that time is also tax free (I'd rather not be shot at thanks…) All defence force pay and conditions are available on the internet.
Cheers
DON'T EVER BUY DHA. I did and was burnt. I bought a house at North Richmond that had a high yield and lead to believe it was a secure investment. I purchased it through Colliers who were selling properties from the Westpac property portfolio. All was good for 12 months, then I was hit with the rent review. It was up to the fith year on the lease. My rent was reduced from $524 to $410. Its a big con. I now have to sell it for whatever I can get for it as the drop in rent has lowered the value of the house and I only had it for 1 year. Always remember, if it sounds to good to be true, it bloody is!!!
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