Frequently asked questions

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

A small number of properties are occasionally made available to buy outside of the ballot system. These properties are marked as 'Buy now', and are available for immediate purchase.

Firstly, register with DHA (via our online form or by calling 133 342) to be assigned a DHA sales consultant. Once you have registered, you will start receiving fortnightly property release emails.
 
To enter a property ballot, email your DHA sales consultant and notify them that you wish to enter the ballot for your chosen property. They will then email you an online Ballot Entry Form to complete, which is required to enter the ballot.

Prior to entering the property ballot it’s important to research the property, including location and associated costs, to be sure it meets your financial goals and investment criteria. Take a look at our four simple research steps, before entering a ballot.

To participate in a property ballot, we require a copy of your finance pre-approval; a letter from your bank/broker stating your borrowing capacity; or a bank statement showing sufficient funds to purchase the property.

Finance pre-approvals remain current on our database for the length of time stipulated by your banking institution. If you are providing a bank statement or a letter from an accountant or broker, this will remain current for three months.

To protect the privacy of our Defence members we do not publish the addresses of properties for sale.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

To keep the process transparent and fair, the automated ballot process randomly selects an applicant for each property and offers them the chance to purchase the property.

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.

The ballot is run on a fortnightly cycle. Properties are released for viewing each fortnight on a Tuesday. The ballot is then drawn on Thursday (the following week), nine days after properties are released on our website.

The ballot closes at midnight Wednesday (the day before the ballot is drawn).

Yes, this is encouraged. Entering the ballot with multiple property preferences will inevitably improve your chance of success. However, please note that you are not able to list properties in order of purchase preference.
 
If successful in the ballot, an investor will only be allocated one of the properties they have selected.

The properties that are marked ‘buy now’ are available for immediate purchase, without needing to go through the ballot process.
 
If you're interested in one of these properties, contact your sales consultant and they will take you through the next steps to purchase the property.

If you are successful in the ballot, your selected DHA property will be placed on hold for seven days. During this time you will need to:

    1. Pay the holding deposit ($2,000)

    Please note: this is the only deposit required throughout the settlement process, and the deposit is fully refundable if the sale does not proceed. The deposit for DHA properties in South Australia is paid at the contract signing.

    2. Complete the Purchaser Information form supplied by your DHA sales consultant.

    3. You may also request a purchaser inspection at this stage (optional).

After this, the Sales Contract process will begin. For more information on the buying process, see our step-by-step guide.

Note: you can opt to have the contract conditional on finance and/or building and pest conditions. If you wish to do this, you must arrange the building and pest inspection at your own cost. Your DHA sales consultant will arrange access to the property for inspections.

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.

Inspections must occur during business hours, and a maximum of four people are permitted (including yourself and the DHA sales consultant).
 
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.

We don't provide or arrange lending services, instead we encourage you to seek independent advice to find the right loan product and structure for your situation. We do have links to financial calculators, which can help you determine your borrowing capacity.

DHA requires properties across Australia in close proximity to defence bases, specific areas can be found here.

Firstly, you can use our postcode finder to check if your property is in an eligible location. If it is in an eligible area, you can submit an online application form. Our team will then assess your property against our requirements.

Find out more about our property requirements here.

After the application is submitted the process will be:

Step 1
A Leasing representative will contact you by email or phone to discuss your application in detail. DHA may request further information to support your application.

If your property does not meet the requirements or DHA does not have a current requirement for properties in the location we will advise you.

Step 2
If your property suits DHA's requirements we will then organise a property inspection.

Step 3
If the property is suitable we may provide you with an Offer to Lease which will outline the lease terms, lease conditions and steps required to accept the offer.

Step 4
Once the Offer to Lease is accepted, we will arrange for a Handover of the property and the lease will commence.

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

While our service fee may be a little higher than other fees—it covers more too. Our unique DHA Property Care contract includes:

•          Vacancy management including grounds maintenance and rent even if the property is vacant.*
•          Non-structural repairs such as organising and covering the cost of repairing or replacing fixed appliances.*
•          Inspections including organising an inspection for yourself or contractors as required.
•          Periodic rent reviews by an independent valuer to ensure you always receive market rent.

Also, DHA doesn’t have any additional charges when new tenants move in or out such as advertising and re-letting fees.

* Conditions apply

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)

If you lease your existing property to us, DHA offers long term leases generally ranging from six to nine years subject to DHA's requirements.

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 (excepting fair wear and tear); the property is professionally cleaned throughout; and the dwelling, grounds and landscaping are in neat and tidy condition.

DHA conducts periodic inspections at least annually, plus we also inspect the property when tenants are moving out, when new tenants move in, when the property is valued, and when any repairs or maintenance need to be carried out.

Almost anyone is eligible to buy a DHA investment property or lease their existing 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.

If you are a Defence Member, keep in mind your entitlements may be affected if you post to the same location as your investment property.

If investing through an entity, you can invest with us through a:

• company
• trust
• self managed super fund

Many of our properties are purchased by entities such as these. They benefit from our long lease terms, reliable rental income, and property care agreements.

If you're an overseas investor, you can invest with us:

You must:

• have an Australian bank account
• be eligible to invest in Australia

The Foreign Investment Review Board provides information on who can invest in Australia. You should also seek advice from a financial expert.

Yes, almost anyone can purchase a DHA investment property or lease their existing property to us. 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, vacancy management, reliable rental income and fixed management fee.

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.

Net rental yield = annual rental income (weekly rental incomes x 52 weeks) - annual expenses and cost / property price x 100.

Annual expenses include, but are not limited, to DHA Service Fee, insurance, council rates, water rates, and body corporate/strata fees (if applicable).

Yes, if the property you are purchasing is covered by a body corporate or strata you will be required to pay those associated fees.

For the majority of these properties, where a body corporate or strata carry out some of the services we would otherwise provide, DHA’s fee is reduced 13 per cent (including GST).

Yes, DHA’s properties are subject to the same government rules as other properties. As with any property investment, it is your responsibility as an investor to determine the scope of these fees and your responsibilities with other government agencies.

Yes, the buyer is responsible for third-party fees including insurance.