09 May 2024 Property investment, minus the migraines: Investing with DHA

Defence Housing Australia (DHA) offers property investment with less stress and more financial certainty through any market conditions.

Property investment often comes with its own headaches – even if you outsource your property management to an agent, you’ll be responsible for property repairs as well as unforeseen costs.  

DHA reduces the stress of property ownership and takes many of those headaches away. Our Property Care Contract1 means most non-structural repairs are organised and paid for by DHA. This includes ‘like-for-like’ replacement of fixed appliances such as the oven, except where a repair is required due to fair wear and tear.

We can also arrange any emergency repairs that are needed. If there’s an event like a flood, we act quickly on your behalf to make sure the property is safe and minimise any damage.

Plus, we’ll keep the property occupied throughout the lease term and manage the occupant on your behalf. If the property is ever vacant, we still pay you rent2 and manage the grounds to ensure they are neat and tidy. And, unlike traditional property managers, DHA does not charge advertising or letting fees when new tenants move in.

You’ll also have certainty that we will keep your investment in great shape for the duration of the lease-term – and that the landscaping, fixtures, fittings, and appliances (subject to fair wear and tear), will be in good order when your lease agreement ends.

To make things even simpler, this is all covered under a single service fee — which is 16.5% for free-standing properties and 13% for apartments/townhouses with a strata or body corporate.

Oxford Economics compared our service fee to a traditional real estate management agreement to measure these benefits. The report found that when you consider the numerous ad-hoc fees and repair costs typically borne by landlords, DHA’s flat fee proves to be more cost-effective in the long run, across most scenarios3. Read more about the upsides of DHA’s service fee compared to property management fees.

What investing with DHA comes down to is peace of mind and assurance of a long-term lease up to 12 years. You’ll receive reliable returns where we continue to pay the rent2 through any market conditions. And with the property market subject to so many external factors such as interest rates, rising prices and unpredictable vacancy rates, when the market changes you, as a DHA investor, still have peace of mind. 

How do you invest with DHA?

We are currently looking to partner with property investors who own or are looking to purchase or build a property.

If you own a property within 30kms of a Defence Base and it meets our general requirements, you may be able to lease it to DHA. You can check if your property is eligible online, by entering your postcode and property details. 

If you’re interested in purchasing a property to lease to DHA, we may even commit to leasing before you buy. Our team can work with you to identify properties that meet your investment goals and our housing requirements.

Finally, if you’d like to build a property to lease to us, speak to the Leasing Team to see if your planned build meets our building and location requirements.

For more information about leasing your property to DHA, submit an enquiry or call 133 342 to speak to a Leasing Expert today.

 

Disclaimer:
1.A comprehensive description of repairs included in our service and exclusions can be found in the Property Care Contract. For more information, please visit https://www.dha.gov.au/investing/property-care.

2.Rent may be subject to abatement under certain circumstances such as loss of enjoyment or amenity, or breach of lease terms. Rent is paid where the property is habitable. Should a property become uninhabitable during the term of the lease, or the lessor breaches the lease terms, the rent may cease or abate, and the lease may be terminated by DHA. Guaranteed rent is subject to the terms of the lease. DHA does not take into account an investor’s objectives or financial needs. Investors should always seek appropriate independent advice before making any investment decisions with DHA. 

3.Visit dha.gov.au/fee-comparison to download the full BIS Oxford Economics Report.