Frequently asked questions

Our lease terms are fixed allowing you to easily adopt a buy and hold strategy.

Our standard lease terms are nine or 12 years, however shorter lease terms of three or six years may be offered on occasion.

So that we have flexibility to meet our Defence housing obligations there is a variable extension period which is used at DHA’s discretion, and is non-negotiable.

So that we have flexibility to meet our Defence housing obligations our lease agreements include a variable extension period which is used at our discretion, and is non-negotiable.

The variable extension period is usually three years. Where these apply they are indicated on the property listing on our website and in the lease agreement.

The advertised rent is the gross rent before fees and charges have been deducted.

What are the outgoing costs?

As a landlord you will retain responsibility for some outgoing costs:

• council rates
• water rates (usage reimbursed by DHA)
• strata rates (if applicable)
• land tax (dependent on the state of purchase and your personal circumstances)
• insurance (please refer to the DHA Lease Agreement)
• termite inspections (at your discretion)
• repairs and maintenance (please refer to the DHA Lease Agreement and Property Care Contract)

We understand that personal circumstances can change, and that you may need to sell the property during the term of the lease.

You can sell the property at any time, however the property must be sold with the remainder of the lease intact.

At the end of the lease agreement, the property is returned to you. This means you can move in, rent privately or sell as you wish.

DHA will ensure all appliances are in working order; the property is professionally cleaned throughout; and the dwelling, grounds and landscaping are in neat and tidy condition.

Almost anyone is eligible to buy a DHA investment property or lease a property to us. You don’t have to be a Defence member, in fact the majority of our investors have no connection to Defence at all.

Yes, anyone can purchase a DHA investment property. However, it is important to be aware that your housing and rent entitlement subsidy (as set by the Department of Defence) may be affected if you are posted to the same location as your DHA leased investment property.

Please refer to the Pay and Conditions Manual (PACMAN), Chapter 7 (7.2.18 Home leased for commercial purposes) for more information.

Companies, trusts and self-managed super funds can purchase a DHA investment property or lease a property to us. A large number of our properties have been purchased by such entities and benefit from our long-term lease, zero vacancy, reliable rental income and fixed management fee.

A DHA investment property is well suited to an investor looking for a hands-off investment, and we do have investors who do not reside in Australia.

In order to purchase a DHA investment property, you must have an Australian bank account and be eligible to invest. If you are a ‘foreign person’, as defined by the Foreign Investment Review Board, you should seek independent professional advice about your eligibility to invest with DHA.

Our properties are priced based on market valuation and are considered fair market value.

The prices of our properties are fixed and are not negotiable.

Our properties are typically sold via a ballot system which takes place fortnightly. The ballot system gives anyone interested in investing in our product an equal opportunity to do so.

The ballot is an automated process with investors who have entered the ballot chosen at random and given the opportunity to purchase the property they have selected.

The key to success in the ballot is being open to investing in a wide range of properties; the more properties an investor selects in the ballot, the greater the chance of securing a property. An investor who is successful in the ballot will only be allocated one of the properties they have selected.

Properties are released fortnightly and are available to view on our website tagged as ‘Coming soon’. These properties are then available for purchase through the ballot which takes place nine days after being released.

Yes, this is encouraged. Entering the ballot with multiple property preferences will inevitably improve your chance of success.

However an investor who is successful in the ballot will only be allocated to one of the properties they have selected.

You may notice that some properties are marked as "Buy now". These properties are available for immediate purchase, without the need to go through the ballot.

If you're interested in one of these properties simply contact your Sales consultant or register your interest and we will take you through the next steps to purchase the property.

To protect the privacy of our Defence members we do not publish the addresses of properties for sale.

However, once you have provided your finance documentation, we can provide you with the property address upon written request.

Our properties are usually occupied throughout the sales process. Once a property has been secured, and after payment of the $2,000 holding deposit, a full inspection can be undertaken by appointment.

Under no circumstances are you to approach the property or the occupant without an appointment. You are also not authorised to take photos, look through windows or over fences. This is to protect the privacy of the occupants.

Yield is a measure of how much cash an asset produces each year as a percentage of that asset’s value.

For property, the yield is the annual gross rental income expressed as a percentage of the purchase price of the property.

Gross rental yield = annual rental income (weekly rental incomes x 52 weeks) / property price x 100.

For example, for a property with a purchase price of $400,000 and weekly rent of $350:

(52 weeks x $350 weekly rent) / $400,000 purchase price x 100 = 4.55% gross rental yield

The estimated outgoing costs for each property will be listed where possible in the property listings.