We are thrilled to introduce the first of of three recent hires, Kat, who has joined our fast growing Build Support team. She’s bringing four years of experience in the administrative field that has instilled in her a passion for delivering exceptional support and fostering seamless communication. Yup, we can attest to that!
HOW MUCH DHOAS AM I ENTITLED TO?
The Defence Home Ownership Assistance Scheme (DHOAS) is a subsidy and home loan scheme available for current and former Australian Defence Force members. It is designed to assist ADF members and their families in repaying their defence home loan and achieve homeownership easier.
The Australian Government has announced a $46.2 million expansion of the Defence Home Ownership Assistance Scheme, aiming to improve access to home ownership for eligible defence personnel earlier in their careers.
The changes will allow veterans who served on or after 1 July 2008 to access the scheme at any stage after they have left the service.
From 1 January 2023, the eligibility criteria for the scheme for each subsidy tier will be expanded by:
-Halving the minimum service required for access by current ADF members from four to two years for permanent service, and from eight to four years for Reserve service.
-Removing the access cap altogether for veterans who have left the service (previously five years).
To be eligible, you must have:
- Served on or after 1 July 2008
- Completed a qualifying period of service anc accrued sufficient entitlement
How much you’re entitled to is calculated as a percentage of the average house price, and split into three tiers based on service length. These are:
- 40% of the AHP at Tier 1
- 60% of the AHP at Tier 2
- 80% of the AHP at Tier 3 – maximum benefit!
Basically, the longer you’ve been serving with the ADF, the higher the maximum subsidy on offer is. Property Coach Robbie runs through the most relevant and up to date information regarding the subsidy and the tiers:
Subsidy Tiers for 2022-23
|Subsidy Tier||Minimum Permanent Service||Minimum Reserve Service||Subsidised Loan Amount||Maximum Monthly Subsidy*|
Up to $514
Up to $771
Up to $1,029
As of 1 July 2022, the AHP is $1,005,327. This figure is used to determine the 2022-23 subsidy tier values. *Estimated monthly subsidy values based on the April 2023 median interest rate. These monthly subsidy values fluctuate based on changes in the median interest rate.
You can see that you have to wait two years of service before you gain access to DHOAS. Most people find it beneficial to wait until they have done at least four to six years of service before pulling the trigger. This is for either of two reasons:
1- So you can have a higher monthly subsidy (about an extra $260 per month stays in your pocket) or;
2- So you can use four years of service in a lump sum – very useful to top up your cash buffer after you have purchased your home.
The real kicker is the main condition of receipt – you and/or your family must occupy the home for at least 12 months and you will need to be occupying the home and holding a valid subsidy certificate before your subsidy payments will commence.
How to use your DHOAS?
Understanding what they are is just one piece of the puzzle. Understanding how to use them, with special focus on when and where you use them, is key to using them successfully. There are some restrictions, and some tips that you definitely need to know before you pull the trigger.
Have you watched our ADF Training yet? Property Coach Robbie Turner shows viewers case studies on exactly what happens when you get it wrong, and how and when to use them to get it right.
Back in March ‘21, Amy was introduced to us by another client. (The constant referrals within our community are humbling to be involved in!). She was a Learning Development Coordinator, not in the ADF. She was coachable and definitely needed some assistance in the whole process.
She had been diligent with her money habits and mindset, with a good amount of savings under her belt. However, we needed to put a plan in place for her to keep saving so the acquisition of her first property was done in a sensible way. This happens all the time. The fact she had financial milestones to reach helped her immensely in getting there!
We first met R&K in Aug 2020. They wanted to secure their financial future using property. Posted to Wagga (R was an RI at Kapooka and K was a civvie Dental Assistant), after a series of coaching sessions, we implemented a plan and strategy for them to acquire IP#1. That $457K property was built without any issues in 2021. Happy days, a good start for R&K.
M&V are a double-defence couple posted to RAAF AMB in Brisbane. After watching our educational videos, they came to us in March 2021. They needed guidance on all things money management and proven strategies to follow.
In their own words, 𝘈𝘹𝘰𝘯 𝘤𝘢𝘯 𝘩𝘦𝘭𝘱 𝘶𝘴 𝘣𝘺 𝘦𝘹𝘱𝘢𝘯𝘥𝘪𝘯𝘨 𝘰𝘯 𝘰𝘶𝘳 𝘰𝘸𝘯 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘵𝘩𝘳𝘰𝘶𝘨𝘩 𝘵𝘩𝘦𝘪𝘳 𝘺𝘦𝘢𝘳𝘴 𝘰𝘧 𝘬𝘯𝘰𝘸𝘭𝘦𝘥𝘨𝘦 𝘢𝘯𝘥 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦𝘴 𝘳𝘦𝘨𝘢𝘳𝘥𝘪𝘯𝘨 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺 𝘣𝘶𝘺𝘪𝘯𝘨/𝘪𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨, 𝘱𝘢𝘳𝘵𝘪𝘤𝘶𝘭𝘢𝘳𝘭𝘺 𝘳𝘦𝘭𝘢𝘵𝘪𝘯𝘨 𝘵𝘰 𝘈𝘋𝘍 𝘦𝘯𝘵𝘪𝘵𝘭𝘦𝘮𝘦𝘯𝘵𝘴. Yep, that sums up what we specialise in!
This inspirational young lady came to us way back in June 2021 at age 20! 20! Already possessing great money habits and a desire for success, she had an openness to learn how to invest the right way. Ella was remarkably clear about what she wanted to achieve and knew that she needed to seek guidance from professionals to ‘force multiply’ her well-established position. With the deposit and cost already saved and a yearning to move with a sense of purpose towards her goals, it was time to put a plan and a strategy in place to set her on an even greater path to success.
This is a success story that everyone should be inspired by!
After being referred to us through a mate who had built a house with 🙌 Axon, we first met Phil in March 2022. He is a single RAAF Pilot posted to Newcastle, loving life with his mates and regularly flying high-end platforms.
Phil had been brought up in a family that values education around money and wealth. (Yep, that’s also something that you should all be inspired by: “intergenerational wealth”). To his credit, Phil applied himself and came to us in a 💪 strong position (cash and shares). But, having this is never enough to be successful.