When you buy a DHA property you agree to lease it back to us for a specified term. In return, you have no tenanting obligations and your rent is backed by the Australian Government.

Long-term lease
Our standard lease terms are 9 or 12 years. Shorter lease terms of 3 or 6 years may be offered on occasion.

So that we have flexibility to meet our Defence housing obligations, we can vary the lease term by exercising each of the following rights once:

• extend the term by a period up to 36 months
• extend the term by a period up to 12 months, and
• reduce the term by a period up to 12 months.

Our long-term lease allows you to easily adopt a buy and hold strategy. Plus, when you consider residential property market cycles in Australia have historically lasted 7 to 10 years—from peak, to slowing, to a flat period and then back to a peak again—you’ll benefit from time in the market and your portfolio will be less sensitive to fluctuations in property values.

At the end of the lease agreement, vacant possession is given to you. This means you can move in, rent privately or sell as you wish.


Guaranteed rent*
Unlike conventional residential property investment, we calculate your rent from the date of settlement. In addition, with the exception of the first and last month, we pay your rent monthly in advance throughout the lease term. It’s even paid when the property isn’t occupied*.

When you buy a DHA property, we also guarantee to pay the commencing rent or higher for the term of the lease. Your rent will be reviewed to market value each year (see DHA Property Care), but it will never be adjusted below the commencing value. For example, if your commencing rent is $400 per week, it can never drop below $400 a week; but it can go up.

Our rent guarantee* means you can budget easily, because you’ll know exactly what your minimum rental income will be for the term of the lease. Financial institutions also look upon DHA property investment favourably—you receive reliable rent, so they know you’ll have the capacity to repay borrowings**.


Register your interest in DHA property or call 133 DHA (133 342) to speak with one of our consultants.



Next - DHA Property Care




Attention: This guide is intended to provide general information only. All references to the lease are in accordance with DHA Lease Agreement Edition 6b. Investment is subject to DHA’s lease terms and conditions of sale. Investors retain some responsibilities and risks. Prospective investors should seek independent advice. DHA does not accept responsibility for any inaccuracy or actions taken in reliance upon this information.
*Rent may be subject to abatement in limited circumstances.
**Subject to each financial institution’s assessment of individual circumstances.