ADF benefits and Defence discounts

10% Defence discount off the total buyer’s agency service fee for ADF and ex-ADF personnel

The ADF culture is to use your entitlements to buy/build a property as you post. Defence have done a great job supporting servicemen and women in their journey to homeownership. However using your entitlements in the wrong location or at the wrong time can set you up for failure. Have a chat with us about how you can squeeze the most out of your entitlements.

Whilst we believe in helping any investor create wealth and financial freedom through property, we particularly aim to support serving and ex-serving members through offering Defence discounts and incentives.

As ex-servicemen, we understand the ins and outs of ADF entitlements including HPAS, HPSEA and DHOAS

Scenario 1

Scenario 2

CPL Dry posts to Darwin (Or Townsville, Tindal, Sale, Oakey – to name a few)

He builds a property with total cost of $600,000
He uses HPAS (approx. 12k after tax) along with 60k he has saved
He claims HPSEA, and gets $10,000 back from expenses
He uses DHOAS, saving him $500 per month on mortgage repayments

After 3 years, CPL Dry is due to post.

Due to poor investing location and buying new (he had builder and developer profits to pay), his property is worth $550,000
His loan amount is $505,000
His ADF entitlements injected $40,000 into his property and net worth
He sells and walks away with $45,000 from the sale of the property
Approximate net position after 3 years is a -15k loss + $40,000 of benefits = $25,000

CPL Brown posts to Darwin, lives in a service residence and buys an investment property in Brisbane.

He buys a property with total cost of $600,000
He doesn’t use any entitlements. They remain on the shelf for a rainy day. As a consequence, he has had to save an extra $12,000.

After 3 years, CPL Brown is due to post.

Due to correct due diligence and asset selection, his property is worth $750,000
His property costs him $8000 per year to hold. A tenant has paid most of his costs.
He had to pay heavily subsidised rent ($200pw) in a service residence.
He can now choose to hold the property which is growing nicely, he can redraw money from it and buy another property.
Net position after 3 years = $24,000 property holding costs and $31,200 for service residence = $150,000 (property growth) – $55,200 = $94,800

$25,000 PROFIT

No longer has access to HPAS and has used 3 years of DHOAS

$94,800 PROFIT

Still has access to HPAS and maximum DHOAS

Would you rather be Dry, or Brown?

Note: This strategy is only for those who want to MAKE THE MOST MONEY with the LOWEST RISK

The Albanese Government is delivering on its commitment to invest in a highly skilled Defence workforce, with eligible personnel from today able to receive a one-off $50,000 payment in exchange for an additional three years of service.

You may be offered a continuation bonus of $50,000 if you complete an agreed period of service and you:

– are a member of the Permanent Forces
– have already completed 4 years of service in the ADF
– have completed any service obligations required on initial entry to the Permanent Forces