12 January 2015 Returns: the art of getting what you want

As Christmas fast becomes a distant memory and the New Year is now in full flight, there is often one thing on everyone’s minds … returns. The shopping centres and streets are full of eager shoppers hoping to return their “lovely and thoughtful” gifts from their nearest and dearest. If your mind asked, “Can I return this?” quicker than the tinsel came off the tree then you are probably not alone.

When it comes to investment, returns, and more specifically return on investment, are always top of mind regardless of the time of year. Although some investors buy property for other reasons—land banking, infrastructure potential or lifestyle reasons—most are only concerned with its current return and potential yield.

One of the biggest selling points for the Defence Housing Australia (DHA) property investment program is its ability to provide an investor with guaranteed rental returns over the long term – for 9-12 years. Tenancy issues, at the top of the list of concerns, are covered as the DHA product provides zero vacancy risk. Regardless of whether your property is tenanted, DHA will cover your rent and therefore guarantee your return. This type of guaranteed return is unmatched in the current residential property market.

But that’s not the only feature that can help return cash to the investor’s pocket. Another unique feature of the DHA offering is the geographically-diverse nature of its property portfolio, tailored specifically to meet the needs of the Defence member. DHA, who is also a major residential land developer with more than $1 billion in its pipeline, has property in most capital cities and many major regional centres. For a savvy investor, this means that you can ride on the back of the cyclical nature of the property market choosing to invest in areas showing high rental returns, or alternatively choosing areas that you expect will experience growth in the coming years.

DHA has long billed its investment offering as a “worry-free investment”, and for those concerned about minimising risk it definitely fits the bill. Guaranteed tenancy, a long-term lease and an ability to have a geographically-diverse portfolio are just the beginning. Tenancy, routine maintenance and day-to-day management of the property are taken care of as part of the DHA Property Care service. Also included is a lease-end restoration, which ensures that the property is returned to you in good order at the end of the lease. This includes internal painting for properties leased for more than six years as well as carpeting and external painting for those leased for nine years or longer. This is all taken care of as part of your upfront management fee, and therefore doesn’t infringe on the returns you are expecting.

So, if you want returns, skip the retail queue and visit dha.gov.au/investing to check it out for yourself.