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About DHA

At Defence Housing Australia (DHA) we are committed to creating vibrant, healthy and sustainable communities that bring Defence members and new home owners together in places they are proud to call ‘home’. We’re one of the country’s most successful Government Business Enterprises, established in 1988 to provide housing and related services to Defence members and their families.

Investing with DHA

When you invest in a DHA property, you get a guaranteed rental income¹ for up to twelve years, and because DHA is backed by the Australian Government, it’s secure. Every DHA investment property undergoes an annual rent review, and your rental income won’t fall below the starting figure, even if the property market does.

We’ll look after all the day-to-day aspects of your investment—pay your rent, manage your tenants and take care of repairs and maintenance. We’ll even spruce up the property for you at the end of the lease.

With DHA, you can sit back today and look forward to a rewarding investment tomorrow.

 

1.Rent may be subject to abatement in limited circumstances.

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The Return

Portfolio management

We are one of the largest property managers in Australia, with approximately 18,000 properties Australia-wide, worth around $10 billion. We are very active in Australian residential housing and investment markets, with award-winning developments; construction; acquisition; and leasing programs. Each year, we sell a portion of our portfolio to investors under a leaseback arrangement. Revenue generated from this activity is our primary source of capital; it funds our operations and enables us to provide quality housing to Defence personnel. In turn, investors benefit from our property expertise and the security and certainty of our lease agreement.

Our properties

Our properties are located in most capital cities and major regional centres throughout Australia where the Australian Defence Force has a presence. We only sell properties that are integrated throughout the community, not those located on Defence bases. They are within close proximity to schools, shops, transport and other amenities.

Our portfolio consists of mainly freestanding houses, however we also offer townhouses and apartments in selected locations.

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Step title

Long-term lease

Our standard lease terms are nine or twelve years. So that we have flexibility to meet our Defence housing obligations, we can vary the lease term by exercising each of the following rights once: reduce the term by up to 12 months; extend the term by a period up to 12 months; extend the term by a period up to the Variable Extension Period, as specified in the Reference Schedule of your lease agreement. At the end of the lease agreement, the property is returned to you. This means you can move in, rent privately or sell the property as you wish.

Flexibility

Although our long-term lease is a great benefit of the program, we also understand that personal circumstances can change and that you may need to sell your property. Our mid-lease sales service and authorised panel of real estate agents across the country can assist with this. This service includes access to discounted commission rates and exclusive marketing to the DHA database.

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Up title

Guaranteed rent

Because your rent is guaranteed¹, you have zero vacancy risk. When you buy a DHA property, rent is payable from commencement of the term of the lease, for the life of the lease. Rent is accrued daily and is paid monthly in advance, directly into your bank account; rent is even paid if the property isn’t occupied.

Our rent guarantee¹ means you can budget easily, because you’ll know exactly what your minimum rental income will be for the term of the lease.

Market rent review

Each year we engage an independent licensed valuer to review your property’s rent to market value. At each review date, your rent is adjusted to the greater of the commencing rent or market rent. It will never be adjusted below the commencing rent, so you can be confident your returns are being maximised. Full details of the market rent review process are set out in the DHA Lease Agreement, which is available upon request.

Reliable tenants

DHA is backed by the Australian Government, so when you buy a DHA property, you can be assured you’re dealing with a trusted organisation. And because our tenants are members of the Australian Defence Force or are Defence civilians, you’ll have peace of mind knowing that your property is in good hands.

1.Rent may be subject to abatement in limited circumstances.

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Inside title

DHA Property Care

We don’t just manage your property; we also organise and pay for day-to-day repairs and maintenance. A distinguishing feature of our lease is DHA Property Care—an extensive range of property related services we provide throughout the lease term in return for a service fee.

We believe our all-inclusive service fee is competitive when compared to the true cost of alternatives. The service fee is calculated as a percentage of the rent and is deducted from your monthly payments. It varies depending on the property type: we charge a flat fee of 16.5% (including GST) for freestanding houses and 13% (including GST) for properties where a Body Corporate is responsible for some items we would otherwise cover.

DHA Property Care is important because it enables us to manage and maintain our portfolio to a high standard. You also benefit by receiving minimal out-of-pocket expenses and phone calls about property management, repairs and maintenance.

Property management

We manage the tenancy of the property and carry out inspections and reporting at periodic intervals.

There is no need for you to inspect the property throughout the lease term, however this can be arranged upon request. We provide you with a statement each month itemising rental payments, outgoings and any other expenses.

We also offer a complimentary bill paying service. Upon receipt of any bill, we will pay the relevant authority, deduct the amount from your rent payment and report the transaction on your monthly statement.

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Out title

Maintenance

Throughout the lease term, we are responsible for organising and covering the cost of most non-structural repair and maintenance works, including the replacement of fixed appliances as needed.

You retain some obligations, but your responsibilities are significantly reduced compared to conventional residential property investment. A comprehensive list of each party’s responsibilities is set out in the DHA Lease Agreement, which is available upon request.

Emergency repair

In the event of emergency—where action is needed to preserve the property and/or protect human health, safety and security— we act quickly on your behalf.

Examples include flooding, fire or a breakdown or failure of any essential service or appliance for hot water, cooking, heating or laundering.

Upon notification, we immediately arrange any repair to the property and, as applicable, contact you so that you can notify your insurer of the situation.

If the emergency falls within your retained responsibilities, we will work with you and your insurer to resolve the claim.

Lease-end restoration

As the end of the lease agreement approaches, our service doesn’t stop. We ensure your property is returned in good order by providing a restoration service². In all cases, we ensure the property is professionally cleaned; appliances are clean and in good working order; and the dwelling, grounds and landscaping are in a neat and tidy condition. Where the lease term is six years or longer, we paint the property internally. Where the lease term is nine years or more, we also replace the carpet and paint externally (except where this is the responsibility of a Body Corporate).

 

2. Restoration service subject to the duration of the lease term and the obligations of a Body Corporate.

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Income title

How to buy

We have a team of dedicated DHA Sales Consultants to ensure you understand our unique leasing arrangements and to guide you through our sales process.

Step 1: Register your interest on dha.gov.au or contact DHA on 133 342.

Step 2: You will receive email property alerts and a DHA Sales Consultant will contact you to guide you through the sales process.

Step 3: Obtain finance pre-approval from a broker or bank.

Step 4: View properties for sale on dha.gov.au

Step 5: Select the property you wish to purchase and advise your DHA Sales Consultant of your preferences.

Step 6: Property will be placed on hold, if successful.

Step 7: Contract process begins. This is the same process that applies in conventional real estate purchase.

 

Attention: This guide is intended to provide general information only. All references to the lease are in accordance with the DHA Lease Agreement. Investors retain some responsibilities and risks including property market fluctuations. Prospective investors should seek independent advice. DHA does not accept responsibility for any inaccuracy or actions taken in reliance upon this information. The testimonials reflect the experience and opinion of real DHA investors.

Guaranteed image
Guaranteed title

Testimonial

Deb and Peter

‘We don’t get value with our other investment. We do with DHA’

Since 2005, Deb and Peter have described themselves as happy DHA investors. Owning multiple investments—in addition to their DHA investment properties—this NSW couple is clear about why they value their DHA investment.

‘With our other investment property the real estate agent is constantly contacting us when it comes to repairs, telling us to get a quote for this and you need to do that,’ said Deb.

‘It’s a pain and we don’t have the time. I feel as though we are paying them 8% in management fees and getting nothing in return.’

‘With DHA our bases are covered. We don’t have to worry about quotes and repairs. DHA charge 16.5% but they organise and pay for most day-to-day repairs and maintenance. We don’t get that kind of commitment for our other investment, but we do with our DHA properties.’

February 2014

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The Investment title

Greg and Kristy

Greg’s passion for property started at a young age when he followed his father around construction sites and listened to property advice from his mother and extended family

‘My parents taught me the value of property investment, and the importance of holding onto property for the long-term. My mum and dad purchased their first property 53 years ago for £4,500 (the equivalent of $9,000) and they still own and rent it out. Today it would be worth around $650,000.’

Greg is proudly passing down his knowledge to his boys, one generation to the next. He and his wife Kristy have developed a successful investment portfolio, which includes a DHA property.

‘For us, DHA is a sound investment that we don’t have to worry about. We know they are looking after our property day-to-day. We are currently saving so we can buy another one in our self-managed super fund.’

September 2014

The Return image
The Return title

Jill and Thomas

‘The more we looked into it, the more it seemed like a very viable choice for us.’

Jill and Thomas first heard about DHA property investment through a relative who was contracted to build houses for DHA in Ipswich, South-East Queensland. ‘He spoke highly about the quality of the houses and that kick-started our investigation,’ said Jill. ‘The more we looked into it, the more it seemed like a very viable choice for us.’

‘After looking at the properties on offer, we chose to buy a four bedroom house in Canberra because we felt it had good potential for long-term capital growth,’ said Thomas.

‘Living in Mackay in North Queensland, raising our sons and attending to our hobby farm, we really needed an investment that would practically run itself,’ said Jill. ‘DHA gives us that.’

‘We’re really impressed with the smoothness of it all,’ Thomas adds. ‘DHA manages the property for the duration of the lease and we don’t have to worry about finding tenants.’

‘For us, this investment is about being comfortable in retirement and being able to leave something for our boys,’ said Jill. ‘As a parent, it’s a nice feeling to be able to pass something on to them one day. But I’m not telling them how much or when!’

December 2012

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About DHA

At Defence Housing Australia (DHA) we are committed to creating vibrant, healthy and sustainable communities that bring Defence members and new home owners together in places they are proud to call ‘home’. We’re one of the country’s most successful Government Business Enterprises, established in 1988 to provide housing and related services to Defence members and their families.

Investing with DHA

When you invest in a DHA property, you get a guaranteed rental income¹ for up to twelve years, and because DHA is backed by the Australian Government, it’s secure. Every DHA investment property undergoes an annual rent review, and your rental income won’t fall below the starting figure, even if the property market does.

We’ll look after all the day-to-day aspects of your investment—pay your rent, manage your tenants and take care of repairs and maintenance. We’ll even spruce up the property for you at the end of the lease.

With DHA, you can sit back today and look forward to a rewarding investment tomorrow.

 

1.Rent may be subject to abatement in limited circumstances.

Portfolio management

We are one of the largest property managers in Australia, with approximately 18,000 properties Australia-wide, worth around $10 billion. We are very active in Australian residential housing and investment markets, with award-winning developments; construction; acquisition; and leasing programs. Each year, we sell a portion of our portfolio to investors under a leaseback arrangement. Revenue generated from this activity is our primary source of capital; it funds our operations and enables us to provide quality housing to Defence personnel. In turn, investors benefit from our property expertise and the security and certainty of our lease agreement.

Our properties

Our properties are located in most capital cities and major regional centres throughout Australia where the Australian Defence Force has a presence. We only sell properties that are integrated throughout the community, not those located on Defence bases. They are within close proximity to schools, shops, transport and other amenities.

Our portfolio consists of mainly freestanding houses, however we also offer townhouses and apartments in selected locations.

Long-term lease

Our standard lease terms are nine or twelve years. So that we have flexibility to meet our Defence housing obligations, we can vary the lease term by exercising each of the following rights once: reduce the term by up to 12 months; extend the term by a period up to 12 months; extend the term by a period up to the Variable Extension Period, as specified in the Reference Schedule of your lease agreement. At the end of the lease agreement, the property is returned to you. This means you can move in, rent privately or sell the property as you wish.

Flexibility

Although our long-term lease is a great benefit of the program, we also understand that personal circumstances can change and that you may need to sell your property. Our mid-lease sales service and authorised panel of real estate agents across the country can assist with this. This service includes access to discounted commission rates and exclusive marketing to the DHA database.

Guaranteed rent

Because your rent is guaranteed¹, you have zero vacancy risk. When you buy a DHA property, rent is payable from commencement of the term of the lease, for the life of the lease. Rent is accrued daily and is paid monthly in advance, directly into your bank account; rent is even paid if the property isn’t occupied.

Our rent guarantee¹ means you can budget easily, because you’ll know exactly what your minimum rental income will be for the term of the lease.

Market rent review

Each year we engage an independent licensed valuer to review your property’s rent to market value. At each review date, your rent is adjusted to the greater of the commencing rent or market rent. It will never be adjusted below the commencing rent, so you can be confident your returns are being maximised. Full details of the market rent review process are set out in the DHA Lease Agreement, which is available upon request.

Reliable tenants

DHA is backed by the Australian Government, so when you buy a DHA property, you can be assured you’re dealing with a trusted organisation. And because our tenants are members of the Australian Defence Force or are Defence civilians, you’ll have peace of mind knowing that your property is in good hands.

1.Rent may be subject to abatement in limited circumstances.

DHA Property Care

We don’t just manage your property; we also organise and pay for day-to-day repairs and maintenance. A distinguishing feature of our lease is DHA Property Care—an extensive range of property related services we provide throughout the lease term in return for a service fee.

We believe our all-inclusive service fee is competitive when compared to the true cost of alternatives. The service fee is calculated as a percentage of the rent and is deducted from your monthly payments. It varies depending on the property type: we charge a flat fee of 16.5% (including GST) for freestanding houses and 13% (including GST) for properties where a Body Corporate is responsible for some items we would otherwise cover.

DHA Property Care is important because it enables us to manage and maintain our portfolio to a high standard. You also benefit by receiving minimal out-of-pocket expenses and phone calls about property management, repairs and maintenance.

Property management

We manage the tenancy of the property and carry out inspections and reporting at periodic intervals.

There is no need for you to inspect the property throughout the lease term, however this can be arranged upon request. We provide you with a statement each month itemising rental payments, outgoings and any other expenses.

We also offer a complimentary bill paying service. Upon receipt of any bill, we will pay the relevant authority, deduct the amount from your rent payment and report the transaction on your monthly statement.

Maintenance

Throughout the lease term, we are responsible for organising and covering the cost of most non-structural repair and maintenance works, including the replacement of fixed appliances as needed.

You retain some obligations, but your responsibilities are significantly reduced compared to conventional residential property investment. A comprehensive list of each party’s responsibilities is set out in the DHA Lease Agreement, which is available upon request.

Emergency repair

In the event of emergency—where action is needed to preserve the property and/or protect human health, safety and security— we act quickly on your behalf.

Examples include flooding, fire or a breakdown or failure of any essential service or appliance for hot water, cooking, heating or laundering.

Upon notification, we immediately arrange any repair to the property and, as applicable, contact you so that you can notify your insurer of the situation.

If the emergency falls within your retained responsibilities, we will work with you and your insurer to resolve the claim.

Lease-end restoration

As the end of the lease agreement approaches, our service doesn’t stop. We ensure your property is returned in good order by providing a restoration service². In all cases, we ensure the property is professionally cleaned; appliances are clean and in good working order; and the dwelling, grounds and landscaping are in a neat and tidy condition. Where the lease term is six years or longer, we paint the property internally. Where the lease term is nine years or more, we also replace the carpet and paint externally (except where this is the responsibility of a Body Corporate).

 

2. Restoration service subject to the duration of the lease term and the obligations of a Body Corporate.

How to buy

We have a team of dedicated DHA Sales Consultants to ensure you understand our unique leasing arrangements and to guide you through our sales process.

Step 1: Register your interest on dha.gov.au or contact DHA on 133 342.

Step 2: You will receive email property alerts and a DHA Sales Consultant will contact you to guide you through the sales process.

Step 3: Obtain finance pre-approval from a broker or bank.

Step 4: View properties for sale on dha.gov.au

Step 5: Select the property you wish to purchase and advise your DHA Sales Consultant of your preferences.

Step 6: Property will be placed on hold, if successful.

Step 7: Contract process begins. This is the same process that applies in conventional real estate purchase.

 

Attention: This guide is intended to provide general information only. All references to the lease are in accordance with the DHA Lease Agreement. Investors retain some responsibilities and risks including property market fluctuations. Prospective investors should seek independent advice. DHA does not accept responsibility for any inaccuracy or actions taken in reliance upon this information. The testimonials reflect the experience and opinion of real DHA investors.

Testimonial

Deb and Peter

‘We don’t get value with our other investment. We do with DHA’

Since 2005, Deb and Peter have described themselves as happy DHA investors. Owning multiple investments—in addition to their DHA investment properties—this NSW couple is clear about why they value their DHA investment.

‘With our other investment property the real estate agent is constantly contacting us when it comes to repairs, telling us to get a quote for this and you need to do that,’ said Deb.

‘It’s a pain and we don’t have the time. I feel as though we are paying them 8% in management fees and getting nothing in return.’

‘With DHA our bases are covered. We don’t have to worry about quotes and repairs. DHA charge 16.5% but they organise and pay for most day-to-day repairs and maintenance. We don’t get that kind of commitment for our other investment, but we do with our DHA properties.’

February 2014

Greg and Kristy

Greg’s passion for property started at a young age when he followed his father around construction sites and listened to property advice from his mother and extended family

‘My parents taught me the value of property investment, and the importance of holding onto property for the long-term. My mum and dad purchased their first property 53 years ago for £4,500 (the equivalent of $9,000) and they still own and rent it out. Today it would be worth around $650,000.’

Greg is proudly passing down his knowledge to his boys, one generation to the next. He and his wife Kristy have developed a successful investment portfolio, which includes a DHA property.

‘For us, DHA is a sound investment that we don’t have to worry about. We know they are looking after our property day-to-day. We are currently saving so we can buy another one in our self-managed super fund.’

September 2014

Jill and Thomas

‘The more we looked into it, the more it seemed like a very viable choice for us.’

Jill and Thomas first heard about DHA property investment through a relative who was contracted to build houses for DHA in Ipswich, South-East Queensland. ‘He spoke highly about the quality of the houses and that kick-started our investigation,’ said Jill. ‘The more we looked into it, the more it seemed like a very viable choice for us.’

‘After looking at the properties on offer, we chose to buy a four bedroom house in Canberra because we felt it had good potential for long-term capital growth,’ said Thomas.

‘Living in Mackay in North Queensland, raising our sons and attending to our hobby farm, we really needed an investment that would practically run itself,’ said Jill. ‘DHA gives us that.’

‘We’re really impressed with the smoothness of it all,’ Thomas adds. ‘DHA manages the property for the duration of the lease and we don’t have to worry about finding tenants.’

‘For us, this investment is about being comfortable in retirement and being able to leave something for our boys,’ said Jill. ‘As a parent, it’s a nice feeling to be able to pass something on to them one day. But I’m not telling them how much or when!’

December 2012

Your guide to investing. With DHA you can sit back today and look forward to a rewarding investment tomorrow. Click through to learn more. Look forward.