discobay

I am interested in buying from the list of homes advertised on the Dept of Housing WA. They seem to represent pretty good value for money and I am wondering if there is a catch. Does anyone have any experience with buying this way?

john in oz

As their site states, these are project homes in conjunction with builders to keep the prices down for low income earners. Like any property purchase you need to do your research and see whether they are good value against similar homes in the area.

The other consideration is where they are and what rents they are likely to achieve in comparison to other homes in the area.

Lastly it is more about your investment strategy and how a property purchase fits in with this.

I hope the above helps a little. cheers john

BASHO

I considered buying into defence housing some years ago and one of the conditions was that the purchaser had to reside full time in the dwelling for a considerable period , it was sufficiently long enough to put me off at the time , 3years--5years ??? I just can't recall.

I'm guessing that if these home purchases are intended primarily for low income earners some residency clause would apply---it damn well should do if it doesn't.

john in oz

You will have to check the ins and out on this and see if there are any restrictions associated with it.

Defence Housing does not require you to reside in it nowadays - it is a straight forward investment offering where you buy it and they rent and manage it for you .

discobay

Hmmm the thought of living in a block of similarly priced homes aimed at low income earners is a little off-putting. Rather like living in council areas I guess.

BASHO

Yep , that's right , Defense Housing , I had it wrong , however you will find , I think , that there is a minimum amount of time you must rent it back to the DOD --5years (?) and they can extend if they want.

It's been 15 years since I looked at it and I didn't look closely then.

john in oz

:-)

yes you have to rent it back to them and they manage it as well as pay you rent regardless of whether it is occupied or not!!!!

Jon77

How very conservative upper middle class of you.

BadgeIsBack

there are schemes where by the govt will subsidise you over 10 years:
in lieu of less rent. It helps with cash flow.

Buzzy--Bee

DHA and NRAS schemes are not well thought of by investors as although there is less risk, the CAPEX outlay tends to be higher. In other words you are buying an asset for more than it is worth, for the peace of mind of being able to get less-risky return.

BB

BadgeIsBack

It's like any other investment - it's the long term growth - and assistance you get that is a draw.

Indeed - when buying these properties ensure that NRAS is on the cards - there are people who buy a property and then find out NRAS is not available.

Pollyana

Those of us who have spent time living in council houses doff our peasant hats to him

BadgeIsBack

Surely it is the plebs who live in McMansions (all different) with a home theatre room and stainless BBQ that are the true members of the conformist-Peasantry...

I know someone who lives in a nice house but everything has a twirl, bow or flirty little thing on it. There is a Harrods bag looped over the kitchen door handle. Who do I report them to?