There are many reasons why investors may decide to sell their DHA-leased property mid-lease, such as a change in circumstances or opting for a different investment strategy. Regardless of the reason, they would naturally want to get the best selling price possible and maximise the return on their investment. Getting the sale of the property right could mean saving time and hassle plus put extra cash in an investor’s pocket.
There are three main elements to getting the sale right when selling a property mid-lease:
- the right agent
- the right presentation
- the right audience
The right agent
Choosing the right agent is the starting point to getting the sale right. If the sale of your property was a game of NFL, you’re appointing the quarterback. Someone who will help devise a strategy, implement the game plan and lead the team to victory!
Some key questions to consider when appointing an agent:
- Does the agent have experience with DHA-leased properties?
- Do they understand and can they explain the investment to potential investors?
- Do they maintain a database of investors?
- Will they be dealing directly with potential purchasers or someone else?
- Do they invest in property themselves?
The right presentation
The way a property is presented and highlighting its positive aspects to the market is key. There are three main aspects to a property that a potential investor will consider before they commit to a purchase.
- The property itself. What the property consists of including bedrooms, living areas, the bathroom, kitchen, yard and so forth. Presenting the features of the property in words and photos will help an investor form a picture of the property and whether it will meet their purchase criteria.
- The location. What’s the area like? What features are close by? What’s the population of the region? How long does it take to drive to schools, university or employment hubs? As the saying goes – location, location, location. Every area has highlights, don’t keep them a secret! To properly illustrate the location, this needs to be done in words and pictures.
- The investment aspect. For the most part, buyers are looking at the property from an investment perspective rather than buying a home to live in – an important difference. Someone selling a DHA-leased property has a great story to tell. Rent guarantees, day-to-day property management, repairs and maintenance service plus restoration at the end of lease and all backed by the Australian Government. Highlighting and explaining these benefits are very important especially to investors that may not have looked into a DHA-leased property before.
One often misunderstood component of the sale is DHA’s management fee. For more detail on what it covers, have a look at a previous blog on the topic – Taking a closer look at DHA’s management fee
The right audience
Reaching the right audience (buyers) is a last essential ingredient to a successful sale. The marketing material might be great, but if you’re not reaching the right audience, interested in what you’re offering, what’s the point?
This is where an agent’s database proves invaluable. Having access to investors who have already shown an interest in the type of property being offered for sale can save you a lot of time and energy.
The eventual buyer might be from interstate, a local or even an overseas investor, so ensure that your property is on websites with not only a local but national reach. An interstate investor may not know about features close to the property or the character of an area. Implementing a profile of the area will help potential investors get a better perspective on the character of the area and its investment potential.
By getting help from the right agent and using the right presentation aimed at the right audience you’ll be placing yourself in the best position possible to maximise the return on your investment.
If you’re considering selling your DHA-leased property or you have a question about the process, we’d love to help. Check out the sellers page of our website, call us on 0421 040 082 or drop us an email at firstname.lastname@example.org.
Jonathan Irwin – Director
Capital Defence Homes
0421 040 082