WHY I DISLIKE DEFENCE FORCE HOUSING

What attracts many investors to Defence Force Housing is the 10 year rental “guarantee”.

Of course, when you understand the fine print, what this “guarantee” really means is that DFA will only keep paying you the rent while they need your investment property to house defence force personnel.

Investors still recall when the RAAF base in Bairnsdale, Victoria, was closed, all those local DFA homes were then no longer required. With a glut of houses for sale, investors couldn’t exit, and of course there weren’t tenants to occupy all of those ex-DFA houses.

Now the Rudd government has commissioned an audit by the Boston Consulting Group to slash $2 billion from the Defence Department’s budget.

Late in the Howard years, there were proposals to close the Woodside Army Barracks in South Australia and the Richmond RAAF Base in New South Wales. These proposals could be readily reactivated.

A far better investment strategy is to avoid such obvious risks and only acquire investments properties in a growth corridor adjacent to a major, diversified economic zone.

If you would like me to help you explore your options, contact me – Bernard Kelly – anytime at

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