Key takeaways
- DHOAS helps ADF members by offering a monthly subsidy on home loan interest, making it easier to invest in property while moving around.
- Postings every 2-3 years can be used to build a property portfolio, renting out homes after living in them for a year, and buying again with each move.
- Defence Finance can help structure loans to make the most of DHOAS and other benefits, providing financial guidance through frequent relocations.
For many serving ADF members, frequent postings are just part of the lifestyle. Every couple of years, you’re packing up and heading off to a new base, a new community, and often a completely new housing situation. But with a bit of planning and the right guidance, each of those relocations can also become a building block in your long-term financial future.
This is where understanding the Defence Home Ownership Assistance Scheme (DHOAS) and having the right support from a defence mortgage broker like Defence Finance can help you plan with confidence.
What are posting cycles, and why do they matter?
Posting cycles in Defence typically happen every 2–3 years. While it can feel disruptive at times, it’s also a great opportunity to build financial security. Every time you’re moved to a new location, you’re given the chance to assess the property market in that region – and possibly invest.
This is where DHOAS comes in. If you’re eligible, it offers a monthly subsidy on the interest portion of your home loan. That means less out of pocket for you, and more breathing room to plan smart.
How does DHOAS work with your property plans?
The key rule to know: if you’re using DHOAS to buy a home, you must live in the property for at least 12 months within the first five years. Once you’ve ticked that box, you’re allowed to rent the property out while continuing to receive the subsidy (for a set period).
For example, say you’re posted to Townsville and decide to purchase a home using a DHOAS-approved loan. You live in it for a year, then get posted to Canberra. Rather than selling the Townsville home, you hold onto it, rent it out, and use your next posting to repeat the cycle. This time, you buy in Canberra. Just like that, you’ve got the start of a property portfolio.
That’s also how DHOAS work. It’s this ability to keep properties while still accessing the subsidy that makes it so useful. Though there are rules and limits, you’ll want to understand clearly.
How can Defence Finance make it happen?
Navigating property DHOAS loans while moving regularly can be stressful. But that’s where Defence Finance can really step in and help.
They understand your lifestyle. They know about DHOAS and understand how to structure your loan so you can take advantage of your entitlements. They are also familiar with how to set things up so you can buy again down the track using equity, leveraging your ADF income, or even factoring in your military super or MSBS pension if needed.
With the right loan structure, like offset accounts or interest-only investment loans, you can make sure your properties are working for you, even while you’re focused on your career.
Realistic property investment strategy example using DHOAS
Here’s what it might look like in action:
- Posting 1 (Year 1–3) — Buy in Ipswich using DHOAS. Live in the home for 12 months.
- Posting 2 (Year 3–6) — Get posted to Darwin. Keep the Ipswich home and rent it out. Use equity and your next DHOAS entitlement to buy again.
- Posting 3 (Year 6–9) — Move to Nowra. Repeat the process. Over 6–9 years, you’ve now got 2–3 properties, all while having your housing needs met.
What to watch out for when using DHOAS?
- Make sure you don’t exceed your DHOAS usage cap too early. It’s limited based on your years of service.
- You’ll need to be proactive with timing. Loan pre-approvals, valuations, and contracts take time, especially when juggling Defence move dates.
- Keep your properties well-managed, especially if you’re posted far away. Consider professional property management to avoid headaches.
Set up your property strategy before you pack up
Your Defence career might move you all over the country, but that doesn’t mean your financial goals need to be on hold. If anything, your postings can be the perfect way to grow a strong property portfolio, especially with the DHOAS subsidy behind you and the right financial guidance.
Talk to a Defence Finance specialist before your next move. A little planning now could set you up for a future of financial security, passive income, and more choices when you eventually decide to transition out of uniform.
