For investors over 50, real estate decisions are less about chasing the next hot spot and more about finding long-term security, consistency and trust – even if that’s outside their hometown.
This shift is driving growing interest in investment models that look beyond traditional home leasing and focus on reliability over speculation.
Defense Housing Australia’s (DHA) long-term leasing model is an option that is attracting the attention of pre-retirees and retirees who want a predictable income without the usual hands-on landlord workload.
Rather than relying on fluctuating rental markets, investors rent their properties to DHA, which then houses members of the Australian Defense Force and their families.
“Investing with Defense Housing Australia offers a reliable way to enter the property market,” says DHA Executive General Manager Property Shane West.
“This approach is characterized by greater safety, a regular income and less management stress.”
Trusted, safe and secure
DHA is not a private agency or short-term operator, but a commercially focused public sector company with a long track record in housing defense families across Australia.
Founded in 1988, DHA was established to ensure that ADF members and their families have access to adequate, well-located housing in the communities where they are posted.
To meet that demand, DHA builds, buys and rents homes across the country, many of which are owned by private investors under long-term leases.
These properties form one of Australia’s largest residential portfolios, giving investors the feeling they are dealing with a stable, established organization rather than an unknown market player.
For many investors, the government ownership and size of the DHA-managed portfolio provides a level of confidence that extends far beyond the day-to-day performance of a single property.
How to invest with DHA
DHA offers a range of investment paths that suit different retirement strategies.
“If you already own a property, you can apply to rent it to DHA, provided it meets our requirements,” says Mr West.
“We can also work with investors before they purchase or build a new property to ensure it meets DHA’s criteria, often with the option for DHA to pre-enter into a lease before the purchase or construction is completed.”
“In addition, some properties are being sold with a pre-existing DHA lease, allowing investors to step into an existing agreement with guaranteed rent.”
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DHAs Build to lease The program allows investors to purchase ‘off-the-plan’ properties directly from official DHA suppliers or accepted builders, which DHA has agreed to lease upon completion of construction.
“We regularly review the builder’s house and land packages and provide a ‘commitment to lease the property’ once completed to agreed specifications,” says Mr West.
Another popular retirement strategy is to purchase a DHA property through a Self-Managed Superannuation Fund (SMSF).
“Investing in a DHA property through an SMSF can provide stable long-term income, with less management time and hassle for SMSF administrators,” says Mr West.
SMSF property investment is becoming a popular strategy for investors over 50 as rental income earned from a property owned by your SMSF is not treated as a super contribution.
This means that these investors can grow their pension balance above the usual contribution limits, making them better prepared for the future.
Investors interested in this option should seek professional advice before proceeding.
Types of properties sought by DHA
DHA is seeking a range of properties including both new and existing houses, townhouses or apartments in various Australian locations.
The key priority areas are currently Brisbane QLD, Wagga Wagga NSW, Sydney NSW and Perth/Rockingham WA, where demand for defense housing is high and investment opportunities are robust.
Homes must be within 30km of a maintained defense base and each home is assessed individually, taking into account its layout, condition, bedrooms, outdoor space, parking and proximity to amenities.
Mr West says that even if a property does not currently qualify, DHA’s leasing team can suggest practical changes, such as security features, climate control or extra storage space, to help it qualify as a compliant property.
DHA is looking for a range of different types of homes in key areas across Australia.
Building a portfolio, one DHA property at a time
For Joanne Agius, 55, and her late husband Michael, investing with DHA made sense from the start of their investment journey.
The couple bought their first investment property through DHA in Canberra in 2002, then expanded their portfolio by purchasing two parcels of land in St Georges Basin and building properties to DHA specifications, then repeated the process in Nowra.
“The main benefits that made us invest in DHA were that the rent was guaranteed, the property was well managed and we didn’t have to worry about maintenance – it is taken care of for us,” says Ms Agius.
“In addition, we liked the long-term stability you get from long-term leases for the houses and the annual rent reviews, so hopefully the rent will increase every year.”
“We have recommended DHA to several family members and friends who have also invested in DHA.”
For retirees looking for less hassle, long-term leases provide reliable income with less daily involvement. Photo: Getty.
A world of benefits awaits
Lease terms are typically three, six, nine or twelve years, with possible extensions.
“You have guaranteed* rental income because DHA pays the rent monthly in advance for the entire rental period, even if the property is vacant, as long as it remains habitable and the rental conditions are met,” says Mr West.
“This provides investors with predictable, stable cash flow.”
“As a government-owned company, DHA offers a level of trust and reliability that is not always found in the private market.”
Mr West says a DHA investment is particularly suitable for individuals who prioritize stable long-term returns, and who prefer a more hands-off investment, as DHA takes care of rentals, inspections and most non-structural repairs.
“In addition to these benefits, by investing with DHA, investors can support defense families across Australia,” he says.
“By providing quality housing for those serving in the Australian Defense Force, investors are contributing to a meaningful cause while pursuing their own long-term investment goals.”
Disclaimers:
*Rent may be reduced under certain circumstances, such as loss of enjoyment or amenities, or violation of lease terms. Rent is paid if the home is habitable. Should a property become uninhabitable during the term of the lease, or if the landlord breaches the lease terms, the rent may be stopped or reduced and the lease may be terminated by DHA. Guaranteed rentals are subject to the terms of the rental agreement. DHA does not take into account an investor’s objectives or financial needs. Investors should always obtain appropriate independent advice before making any investment decisions with DHA.
^A detailed description of the repairs included in our service and the exclusions can be found in the Property Care Contract. For more information please visit https://www.dha.gov.au/investing/property-care
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