DHDHA (Defence Housing Australia) offers Aussie property investors a low-risk investment option.  DHA provide investors with a range of homes to select from, with predetermined rental appraisals completed, to make the investor’s decision easier. DHA then lease the home back to serving military members of the Australian Army, Navy, and Air Force, over a period of 9 to 12 years.

Benefits of investing in a DHA property

·         Guaranteed rent for the term of your lease (9 or 12 years). Even between military postings (when the home maybe vacant for a few weeks), the rent is paid.

·         Repairs and Maintenance are organised and paid by DHA- no hassles to the investor;

·         Annual rent reviews, to ensure market rent is being charged

·         End of lease professional cleaning is organised by DHA- which includes complete repaint of interior.

Disadvantages of investing in a DHA property

·         Higher property management fees- between 13%-16.5% compared with mainstream property managers who charge 7.5% or 8%.

·         Selling mid-way through the lease means only being able to on sell to another investor- the balance of the lease term and conditions intact must transfer over

·         DHA typically construct a large number of houses in the one suburb. They are all similar and quite basic- this doesn’t help the investor to obtain capital growth.

·         No improvements or renovations can be done, once you’ve signed the lease e.g. no new kitchen.

·         Cash flow control is up to DHA- they organise the repairs etc. therefore have control over your actual cash flow.

As Michael Yardney of Metropole Property Strategists, puts it, when considering whether to enter into a DHA investment property two main questions need to be asked:


  1. How much of my rental will I miss out on, because of high management fees?            


  1. Will the security of a guaranteed rent and depreciation allowances compensate for the slower capital growth?



Are you looking to buy property in Australia ? Brighton East , Sydney , Western Australia , Brisbane , Melbourne

Are you looking to rent property in Australia ? Port Douglas , Surfers Paradise , Apollo Bay , Cowes , Byron Bay

Apartment for sale in Melbourne


  1. avatar
    Carol McDonald