Are Defense Housing Good Investments?

Are Defense Housing Good Investments?

Defense housing is a successful "worry-free" investment property program run by the Australian Government. The aim of the DHA program is to build new residential housing, sell them at market price and rent them back to members and families of the defence force. But are DHA properties right for everyone, or are they more suitable for a particular type of investor?

video: Pros and Cons of DHA properties

{youtube}ZqHcyshdvvo{/youtube}

Is it the right Investment Strategy?

In this video, Robert Projeski discusses the pros and cons of purchasing a defense force property offered through Defense Housing Australia (DHA).

The advantage of a DHA property is that it has a guaranteed rental return for 12 years - an appealing offer for those that are risk adverse. The other appeal is that DHA provides property management through it's Property Care Service program, which provides maintenance and on-going management. However property management fees are double the cost of what you would normally pay for.

So the answer to whether DHA is the right investment will really depend on a persons situation, their risk profile and investment strategy. Before investment in a DHA property make sure you do your due dilligence and think through your decisions.