Defence Force Housing – a hands-off investment

Print This Post A A A

What is Defence Housing Australia?

Defence Housing Australia (DHA) is a government-backed residential property developer and property investment organisation built on the back of a need for housing Defence members and their families. DHA builds houses in locations across the country wherever there is a Defence presence, sells some of the houses to investors, then leases them back to house Defence members. It is a truly unique investment on the Australian property landscape.

What is the investment proposition?

The product offered by DHA is a hands-off investment. For the life of the lease, DHA takes care of most things associated with the running of that property, including traditional tenancy management, as well as day-to-day repairs.

DHA pays the rent on behalf of the Defence member, so rent is paid regardless of whether the property is tenanted.That guaranteed investment return makes it a unique investment opportunity.

Average gross yield on our properties is just over 5% and can reach as high as 6% per annum and DHA Property Care means we take care of everything related to the property for a fee of between 13 to 16.5% (including GST). This means you never even have to visit the premises, or worry about the cost of getting anything fixed.

What else does DHA do?

DHA is becoming known in the residential property development industry as well. In the past 12 months we have won awards for our  developments from the Urban Development Institute of Australia and Property Institute of Australia.

We have a property portfolio valued at approximately $10 billion, which includes apartments, houses and townhouses, and a development pipeline of more than $1 billion. That pipeline of investment stretches across the country, and it’s not all for Defence members – a portion of many developments are sold to the wider community.

Among the developments is the 1,200 dwellings in Rasmussen QLD, 450 dwellings at AE2 in Ermington NSW, 345 dwellings at Crimson Hill in Lindfield NSW, and the Breezes development in Darwin NT, which includes 1,200 dwellings specifically designed for the tropical environment.

Why do you focus on sustainable housing?

What we’re doing in Darwin sets a new standard in sustainable housing for DHA. The houses feature solar orientation and passive design to ventilate and cool the home, as well as open-plan design and covered outdoor living areas designed for tropical living.

All DHA homes are built to achieve a minimum six-star Energy Efficiency Rating and, where possible, new homes incorporate solar panels to support reductions in energy use. In some major developments they have even started using solar-powered community street lighting and ‘grey’ water for landscaped areas.

We have a certain obligation to make sure our Defence tenants are taken care of, but we also want to offer the very best product to our investors and the wider community. By building sustainable communities, rather than just houses, we are taking care of our customers, and we’re building for a better future at the same time.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances. DHA is an advertiser on the Switzer Super Report website.

Also in the Switzer Super Report

Also from this edition

View More Articles