As housing affordability and investment uncertainty continue to challenge Australians, government business enterprises like Defence Housing Australia (DHA) offer a secure and structured alternative, but they’re often misunderstood.
Despite common myths around property types, management fees, rental returns and flexibility, DHA provides a range of investment pathways that support both the housing needs of Defence families and the goals of individual investors.
With market-aligned rents, guaranteed rental income*, comprehensive property care^ services and the option to sell mid-lease, DHA’s model offers a practical response to broader housing pressures while delivering long-term stability in a rapidly changing market.
Myth #1: You can no longer buy a property with a DHA lease
While DHA has transitioned away from its long-running Sale and Leaseback Program, the ability to invest with a DHA lease remains very much available, just in more flexible ways.
Today, investors can partner with DHA by leasing their existing investment property, building a new one in collaboration with DHA official suppliers, or purchasing a property that meets current Defence housing needs.
These opportunities are targeted in key growth areas such as Rockingham, Townsville, Brisbane, Canberra and parts of New South Wales, where demand for Defence housing continues to rise.
Rather than limiting access, the shift away from directly selling properties has allowed DHA to offer more adaptable leasing pathways that better align with both investor preferences and Defence requirements.
Myth #2: Properties must be under 10 years old
Contrary to the common belief that DHA only accepts properties less than 10 years old, the organisation takes a more flexible approach when assessing property eligibility.
Rather than imposing strict age limits, DHA prioritises the quality, condition and compliance of homes to ensure they meet Defence housing standards.
This means well-maintained older properties that satisfy the location, property type and amenity requirements can also qualify, reflecting DHA’s focus on providing suitable, comfortable homes rather than simply newer dwellings.
DHA’s Executive General Manager Property, Shane West, says DHA assesses properties on a case-by-case basis.
“We seek quality properties within 30kms of a serviced Defence base, including houses, townhouses and apartments,” West says.
The age and condition of fixtures and fittings are considered during the assessment and additional installations like security screens or climate control may be required for occupant comfort and security.
“Our leasing team can work with property owners to ensure compliance with our needs,” West says.
Well maintained homes older than 10 years may be eligible to lease to DHA. Picture: DHA
Myth #3: Service fees are too high
A common misconception is that DHA’s service fee is too high compared to traditional property management costs.
However, independent analysis conducted by Oxford Economics found that in most cases, investment property owners save money leasing their property to DHA.
In their “most likely” cost modelling scenario, investors leasing a house to DHA can save up to 12.7% per annum, while investors leasing an apartment to DHA can save up to 9.3%.
Unlike many property managers who charge extra for these services, DHA offers a comprehensive, less-stress package providing good value for investors.
“DHA’s service fee may appear higher, but it offers significant value compared to traditional property management,” West says.
“Our fixed fee includes comprehensive property care^ services and guaranteed rental income*, eliminating the worries of vacancies, tenant changes and most non-structural repairs^.”
Myth #4: DHA only looks for houses
DHA’s property portfolio has expanded beyond just houses to include townhouses and apartments.
This diversification reflects DHA’s response to changing market demands and Defence personnel’s varied housing needs.
By broadening its range of leased properties, DHA offers investors more choice catering to different budgets and preferences, while providing the security of a government-tenant with unique property care^ services and long-term leases.
“To meet the needs of Defence and cater for the changing preferences of Defence members and their families, DHA has built a diverse housing portfolio with a blend of traditional detached houses, townhouses and units,” West says.
“This diversity provides investors with more options in their investment choice, giving more flexibility in location, price and property type.”
From houses to units and townhouses – DHA is flexible with the properties they lease. Picture: DHA
According to REA Group senior economist Anne Flaherty, a key principle for long-term investment success is balancing risk across a range of assets and markets.
“Diversity and spreading your risk out around different asset types and also different locations is always a good thing when it comes to investing,” Flaherty says.
Myth #5: DHA pays less than market rent
DHA’s rental payments are based on independent market valuations to ensure rates are competitive and reflect current market conditions.
This method provides investors with fair, market-aligned rent and the security of a government business enterprise.
“DHA ensures competitive rental rates by using independent licenced valuers and basing initial rents on current market rates of similar properties in the area,” West says.
DHA also conduct periodic rent reviews with independent licensed valuers, so that investors not only receive guaranteed rent* even when the property is vacant, but that the rent is fair market value.
Myth #6: You cannot sell a property mid-lease
Contrary to popular belief, investors can sell their property during the DHA lease term, with the existing lease agreement transferring to the new owner.
DHA recognises that circumstances change, and its leasing model is designed to accommodate investor needs while maintaining housing continuity for Defence families.
“While investing with DHA should be considered a long-term investment strategy, we understand that personal investor circumstances can change and that you may need to sell your property during the term of the DHA lease agreement,” West says.
“DHA landlords can sell their property at any time, providing added confidence for investors considering their options.”
With its competitive fees, market-aligned rents and comprehensive property care^ services, Defence Housing Australia offers investors stability and security, making it a strong option for those seeking low-risk, long-term returns in the property market.
Investors should always seek appropriate independent advice before making any investment decisions with DHA.