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Buying/selling a DHA-leased property mid-lease

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Buying/selling a DHA-leased property mid-lease

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Feb 15, 2016
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A Defence-leased property (DHA-leased property) comes with many benefits, such as a long-term lease that can range from 9 to 15 years. And as the saying goes, ‘it’s not so much the timing, but the time in the market’ that determines building wealth in the property market. But, what happens if an investor needs to sell their DHA-leased property partway through the lease (mid-lease)?

A DHA-leased property comes with rent guarantees, maintenance provisions, day-to-day management and a make good service at the end of lease. In return DHA (Defence Housing Australia) get to use the property for the term of the lease to house Defence members. The investor gets a hands-free investment and DHA get to provide stable housing for Defence families.

Luckily for investors, the many benefits of having a DHA lease on their property has become more widely known. Because a DHA lease is such an excellent investment choice, more and more investors are keen to snap up a DHA-leased unit, townhouse or house mid-lease.

For investors, two key aspects are important to understand:
a) the benefits that come with a DHA lease
b) DHA’s fee structure – although higher, it is excellent value for money.

Read more on these topics in our previous blogs:
Investing in a Defence (DHA) home. So how does it work?
Taking a closer look at DHA’s management fee

The owner/lessor is free to sell their property to another investor at any stage throughout the lease. The new investor takes over the remaining term of the lease with the same advantages and benefits, plus in most cases they get the added benefit of the make good provisions – repainting and recarpeting of the property at the end of the lease.

Buying a DHA-leased property mid-lease can be a great option for investors who want the advantages that come with a DHA lease, but for a shorter period of time. It’s also a popular choice for people who might like to move in down the track – an upgrade in a few years’ time perhaps.

If you’re looking to invest, make sure you register for our ‘New Property Alerts’ and be among the first to receive our latest ACT investment opportunities plus investor news blogs such as this one. Register here.

If you’re considering selling your DHA-leased property check out the sellers page on our website or contact us for an obligation free consultation on 0421 040 082 or drop us an email at admin@capitaldefencehomes.com.au.

Let’s catch up soon!

Jonathan Irwin – Director
Capital Defence Homes
0421 040 082
jonathan@capitaldefencehomes.com.au

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