Buy or build a property to lease to DHA

If you are looking to buy or build a property, we may be able to commit to leasing it before you finalise your purchase. 

You will still receive all the great benefits of a secure, long-term tenant and guaranteed rent* with the flexibility to buy or build a property that suits your budget and investment goals.  

Buying a property to lease to DHA

DHA's leasing experts can work with you before purchasing to ensure that your property meets our requirements and your investment goals. 

Searching for and purchasing a property to lease to DHA is no different to any other investment property. However, we offer the unique ability to work with your prospective tenant to help you find a property that suits our requirements. We may also be able to commit to leasing it before you finalise your purchase. 

Before commencing this process, you should speak with a financial advisor, accountant or mortgage broker for independent advice and based on your personal circumstances.

Step 1 – understand DHA's property requirements and locations

Properties leased to DHA must meet specific requirements and be located where we currently need dwellings. Before beginning your search, we recommend understanding our property and location requirements to help narrow your search to the types of properties DHA is most likely to lease. 

You can also view our current priority locations to see where we are actively seeking properties. 

Using these guides, we recommend creating a shortlist of the types of properties and locations which suit your budget, investment goals and are likely to meet DHA's requirements. 

Step 2 – speak to our Leasing Experts

Once you understand DHA's requirements and have a basic shortlist, call us on 133 342 to speak to our Leasing Team. 

Our staff will connect you with the most appropriate Leasing Manager based on where you'd like to purchase. The Leasing Manager will help refine your shortlists and be your point of contact moving forward. They will be able to quickly assess any properties you are interested in buying so there are no delays to your purchasing process.

Before your call, we recommend writing down:

  • your budget
  • your preferred location(s), including any suburbs or areas you are interested in
  • your preferred property type, including features you'd like included
  • your purchasing timelines
  • any specific goals you may have for the purchase, for example, purchasing for your children or as a place to move when you retire.

Let our Leasing Expert know if you're unsure or are happy to explore any location or type of property. They can help narrow down locations and types of properties that are likely to be in your budget.

Step 3 – identify suitable properties

Using your search criteria, shortlist properties you are interested in purchasing. If you live in the same city, we recommend visiting open homes to help narrow your list further. 
Once you have a shortlist, call DHA on 133 342 or email your Leasing Manager. They can help to narrow down your shortlist to ensure that only properties DHA would accept are included. 

Step 4 – submit properties for assessment 

Once you have a property you would like to purchase, submit the property for assessment online via our application form or by directly contacting your Leasing Manager. 

To assess the property, we recommend including:

  • a floor plan
  • recent photos of the property (these can be from the property listing).

You will also be required to include:

  • the weekly rent you would like to receive for the property
  • your preferred lease term. Generally, these are 6, 9, or 12 years plus possible extensions1.

Step 5 – inspection, valuation, and lease term

If it meets our needs, a member of our Leasing Team will organise with you to inspect the property. You may need to work with the listing agent and DHA to arrange this inspection.

The inspection will allow DHA to provide a rental valuation and ensure the property meets our requirements. 

Step 6 – formal letter of offer

Your formal letter of offer will provide certainty that if you complete the property purchase, DHA will lease it from you for a specified weekly rent and lease term. 

You are under no obligation to complete the purchase or lease the property to DHA if you do purchase the property. 

Step 7 – purchase property and accept letter of offer

During this time, you should follow the usual due diligence process of buying any property, including obtaining independent legal and financial advice to ensure the property matches your investment needs.

Once you have purchased the property, accept your letter of offer to commence the process of leasing your new property to DHA. 

Building a property to lease to DHA

DHA may also be able to commit to leasing a property before your purchase land or begin construction of the property. By working with DHA's Leasing Team before building, we can help ensure that your proposed property meets our requirements.

On occasion, we may be able to direct you to builders currently developing DHA-compliant properties. 

Before commencing this process, you should speak with a financial advisor, accountant or mortgage broker for independent advice and based on your personal circumstances.

Step 1 – speak to our Leasing Experts

As early in the process as possible, call us on 133 342 to speak to our Leasing Team.

Our Leasing experts can work with you to identify locations to purchase land which meet our requirements. They can also help provide the specifications and inclusions needed for the property to meet our minimum requirements and include any identified additional features.  

If you already own land, our Leasing Experts will be able to let you know whether it is in one of our required locations. They can also provide the specifications and inclusions DHA will require of the constructed dwelling. 

Step 2– identify suitable house and land packages or builders

You may also search and shortlist available house and land packages that meet your investment goals and DHA's requirements. Then, contact our leasing experts with your shortlist so they can advise on the most suitable properties that meet DHA's requirements.  

If you own land, now is the time to identify builders and have them provide a plan for your property with a list of inclusions.

Step 3 – submit property for assessment 

Once you have found suitable land and a builder, submit the property for assessment online via our application form or by directly contacting a member of our Leasing Team. 

To assess the property, we will need:

  • the property address
  • a builders plan
  • property inclusions list
  • development master plan (if applicable)

You will also be required to include:

  • the weekly rent you would like to receive for the property
  • your preferred lease term. Generally, these are 6, 9, or 12 years plus possible extensions1.

Step 5 – formal letter of offer

DHA will use the documents provided to assess the property against our requirements and raise an "as if" valuation of the property's potential rent once construction is complete. 

If the property meets all our requirements, we can provide you with a formal letter of offer which provides you with certainty that DHA will lease the property once it is habitable. 

Please note that once issued with a letter of offer, you are under no obligation from DHA to finalise the purchase of the proposed property or lease it to us on completion. 

Step 6 – purchase property and commence construction

Once you have your formal letter of offer, you can finalise the purchase and begin construction of your property. During this time, you should follow the normal due diligence process of purchasing any property, including obtaining independent legal and financial advice. 

Buying or building a property with a DHA lease already in place

If you are interested in buying or building a property to lease to DHA, you may be able to purchase one with a lease already in place. This ensures that you’ll receive all the benefits of DHA’s lease and Property Care Contract without needing to go through our property application process. 

Types of properties listed for sale with a DHA lease in place include:

  • established properties being sold during the term of the lease (mid-lease), allowing you to take over the remaining lease term. You may also be able to sign a new lease subject to our requirements.
  • new builds delivered by developers or builders that DHA has committed to lease. The agreement can be transferred to you, with the lease commencing once all DHA requirements met.

Properties for sale are available to view and are regularly updated on the search investment opportunities page

Next steps and more information

If you'd like to speak to our Leasing Experts to begin your purchasing or build journey, please call 133 342 or submit an online enquiry.

Ready to invest?

Enquire now and we will assist you with leasing your investment property to DHA.

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Free property investment webinar 

Learn about the benefits of leasing your investment property to DHA, ask questions and have them answered live. 

1. DHA can vary the lease term at our discretion by exercising each extension right once. Investors should consider their long term plans and potential changes in circumstances when assessing a DHA long term lease. 

For more detailed information on leasing a property to DHA, visit: Lease your investment property to DHA | Defence Housing Australia. Investment in a DHA property is subject to the terms of the lease and those terms take precedence over the information or material in this email or external sites. Investors retain some responsibilities and risks. The information in this email is provided for general information purposes only, and on the understanding that DHA is not providing professional advice on any particular matter. This email is not a substitute for obtaining independent professional advice. Before any action or decision is taken on the basis of any information in this email or through external sites, the user should obtain appropriate independent professional advice including legal and/or financial advice. DHA is not liable for any loss, damage, cost or expense incurred or arising by reason of any person relying on the information in this email or websites mentioned therein. This email mentions other websites that are external to DHA. This does not constitute an endorsement or recommendation of any material on those websites, or any associated organisation, product or service. DHA has no direct control over the content of those, or the changes that may occur to the content on those websites. Users of external websites are responsible for being aware of which organisation is hosting the website they visit and it is the user’s responsibility to make their own decision about the accuracy, reliability, completeness, correctness or currency of information contained in linked websites.