Many ADF members assume that DHOAS, the Defence Home Ownership Assistance Scheme, can fund an investment property purchase the same way it funds a family home. It cannot. DHOAS subsidises the home loan interest on a property the member and their family occupy, and the scheme's conditions tie the subsidy to living in the home, according to the Defence Home Ownership Assistance Scheme. That distinction matters before a contract is signed.
That does not mean investment property is off the table. ADF members across Greater Springfield and Ipswich buy investment properties regularly, using their own savings, standard investment loans and careful planning around postings. What changes is which Defence schemes apply, when Queensland duty concessions are available, and how DHOAS interacts with a property the member does not live in.
Our solicitors in Springfield and Ipswich help clients across Greater Springfield with ADF property purchases, both homes and investment properties, and with the legal steps that go with them.
Here is how buying an investment property as an ADF member generally works in Queensland, and what the key rules mean in practice.
Key takeaways
- DHOAS loan funds cannot be used to buy investment properties, according to the Defence Home Ownership Assistance Scheme.
- Queensland's first home owner grant and duty concessions are generally not available for investment property purchases.
- A subsidy certificate from DHOAS does not extend coverage to a home later rented out as an investment property.
This article is general information only and is not legal advice. Every situation is different, and you should speak with a solicitor about your own circumstances.
Can ADF members use DHOAS to buy an investment property in Queensland?
DHOAS loan funds cannot be used to buy investment properties, according to the Defence Home Ownership Assistance Scheme. The scheme is specifically for buying a home or land, building, renovating or extending a property, or refinancing a loan taken out for one of those purposes. An investment purchase, where the member does not intend to live in the property, sits outside what DHOAS covers.
There is a further rule on ownership. To receive a DHOAS subsidy, the member, alone or with their partner, must hold a 50% or greater interest in the property and be on the title. No subsidy is paid if any interest in the land is held as a trustee or beneficiary of a trust. These conditions apply whether or not the property is a home or an investment, and they shape how any DHOAS-linked property can later be used.
ADF members buying an investment property in Queensland do so through a standard investment loan, not a DHOAS home loan. A solicitor can advise on the legal steps for that purchase, including the contract, transfer duty and title registration.
What Queensland duty concessions and grants apply to ADF investment purchases?
Queensland's first home owner grant and the first home and home duty concessions are generally not available for investment property purchases. The Queensland Revenue Office requires buyers claiming a home concession to move in and live in the property on a daily basis within one year of settlement, and that time cannot be extended. Investment properties, by definition, are not occupied by the buyer, so the concession does not apply.
The general transfer duty rates apply to an investment purchase, according to the Queensland Revenue Office. As at 25 June 2026, those rates range from nil on a dutiable value up to $5,000, to $17,325 plus $4.50 for each $100 over $540,000 for properties valued between $540,000 and $1,000,000, with the full rate continuing above that threshold. Duty is calculated on the higher of the contract price and the unencumbered market value of the property.
If the buyer is a foreign person for Queensland duty purposes, an additional foreign acquirer duty of 8% applies on top of the general rate, according to the Queensland Revenue Office. An ADF member who is an Australian citizen or permanent resident is not a foreign person for these purposes.
Transfer duty documents are generally lodged within 30 days of the contract date, not the settlement date, and payment follows shortly after. A solicitor handles the lodgement and payment as part of the conveyancing process.
What happens to DHOAS when an ADF member's home becomes a rental property?
An ADF member who has already established a DHOAS home can generally keep receiving the subsidy after the property becomes a rental, provided the DHOAS home loan remains current. The Defence Home Ownership Assistance Scheme says that after the occupancy requirement of at least 12 months is met, subsidy payments continue whether or not the member lives in the property, and the home can be rented out while the DHOAS loan remains current.
A posting that comes after moving in in good faith is dealt with separately. Where the member is posted before the 12 months is up, the scheme allows the subsidy to continue even though the member relocates, provided the posting occurred after a genuine move-in. The member notifies the Department of Veterans' Affairs on a Change of Circumstances form before moving, with the posting order attached.
Where the member already holds a posting order and knows they will relocate within a year of payments starting, the scheme's approach differs: payments run only until the member vacates.
These are scheme rules administered by the Department of Veterans' Affairs. The legal steps for converting a home to a rental, including any lease agreement and the rules for a tenant in place, are a separate matter. A solicitor, together with the DHOAS team, can help a member understand how both sides of that picture fit together.
"The legal steps for an ADF investment property purchase are the same as for any Queensland buyer. What changes is which Defence schemes apply and whether any concessions are available, and those questions are worth settling before the contract is signed."
Jade Kickbusch, Principal, Brookwater Legal
How does buying an investment property generally work as an ADF process?
Step 1: Talk to us
Get in touch and we will explain how the conveyancing process works for an investment purchase and what the legal steps involve.
Step 2: Review the contract
We review the contract of sale before it is signed, checking the conditions, the settlement date and any special conditions that affect the purchase. For an ADF member, timing around postings and the contract date are worth considering before signing.
Step 3: Handle the duty, searches and title
We lodge the transfer duty documents with the Queensland Revenue Office within the required period, carry out title searches through Titles Queensland, and manage the identity verification process now required under the AML/CTF framework that commenced 1 July 2026.
Step 4: Settle and register
We manage settlement through the electronic conveyancing platform, coordinate with the lender, and ensure the title is registered in the buyer's name with Titles Queensland after settlement.
| Get in touch Need help with buying an investment property as an ADF member? We're an experienced team who keep you well informed at every stage of the process. Get in touch to discuss your needs. |
What do ADF members commonly get wrong about investment property and Defence schemes?
The most common misunderstanding is that a DHOAS subsidy certificate can be used to fund an investment property the member never intends to live in. The scheme requires the member and their family to occupy the home for at least 12 months before the property can be rented out while the subsidy continues. Starting with an investment purchase bypasses that occupancy requirement entirely, and DHOAS does not cover it.
A second misunderstanding involves the Home Purchase Assistance Scheme, known as HPAS. HPAS assists members and their resident families to buy a home to live in during a posting, according to Defence. It is not designed to help buy an investment property, and its conditions require the member to occupy the property within the required time after settlement.
Both schemes are straightforward when a member buys a home to live in. They become more complex when posting dates, occupancy periods and later rental arrangements are all in play at once. Getting that sequence right before signing any contract is where legal advice adds the most value.
When does it not make sense to use DHOAS on a later purchase after renting out the first property?
A member who rents out their DHOAS home and then wants to buy another property faces a specific constraint. Refinancing the existing DHOAS loan to remove a former partner, or closing it and opening a new loan, is a subsidy ceasing event, according to the Defence Home Ownership Assistance Scheme. Once the subsidy ceases, a new subsidy certificate is needed to re-establish payments on the replacement loan.
The scheme says a member who no longer has access to a certificate may have further access in specific circumstances under the DHOAS Act, and recommends contacting DHOAS before refinancing. That is a scheme-level question the member needs to resolve with the Department of Veterans' Affairs before any contract is signed for a subsequent purchase.
The legal steps for a subsequent purchase, whether a home or an investment, are the same as for any Queensland conveyance. The question of which scheme applies and whether a new certificate is available is separate from the conveyancing process itself, but both need to be in place before settlement.
Frequently Asked Questions
Can an ADF member use a DHOAS loan to buy an investment property in Queensland?
No. According to the Defence Home Ownership Assistance Scheme, loan funds can only be used for buying a home or land to live in, building, renovating or refinancing such a loan. Investment purchases are not covered.
What transfer duty rate applies when an ADF member buys an investment property in QLD?
The general transfer duty rates apply, according to the Queensland Revenue Office. As at 25 June 2026, those rates run from nil under $5,000 up to $38,025 plus $5.75 per $100 over $1,000,000. Home concessions are not available for investment properties.
Can an ADF member rent out their DHOAS home in Queensland?
Generally yes, after the member and their family have occupied the home for at least 12 months, according to the Defence Home Ownership Assistance Scheme. The subsidy can continue while the DHOAS loan remains current and the home is rented out.
Is the first home owner grant available to ADF members buying an investment property in QLD?
No. The Queensland Revenue Office says the grant is not available to purchase investment properties. The buyer must move into the new home within one year of the completed transaction and live there continuously for six months.
What happens to a DHOAS subsidy if an ADF member refinances their home loan in Queensland?
Refinancing the DHOAS loan is a subsidy ceasing event, according to the Defence Home Ownership Assistance Scheme. A new subsidy certificate is then needed to re-establish payments, and the member should contact DHOAS before refinancing.
Do you need a solicitor to buy an investment property as an ADF member in Springfield or Ipswich QLD?
In Queensland, conveyancing is a legal service that can only be provided by a qualified solicitor or law practice. A solicitor handles the contract review, transfer duty, title searches, AML/CTF identity verification and settlement. Our legal services for ADF members include investment property conveyancing.
Does the AML/CTF identity verification requirement apply to ADF members buying property in QLD?
Yes. AUSTRAC's AML/CTF obligations commenced 1 July 2026 for legal practitioners, including solicitors acting in conveyancing transactions. All buyers, including ADF members, can expect their solicitor to verify their identity as part of the conveyancing process.
Your Next Steps
An investment property purchase as an ADF member involves the same legal process as any Queensland conveyance, but the interaction between Defence schemes, occupancy requirements and duty concessions adds layers that are worth understanding before a contract is signed. Getting the sequence right in Ipswich and across Greater Springfield means less risk at settlement and a clearer picture of what each scheme actually covers.
Every investment property matter is different, and that's exactly why it's worth a conversation. Make an appointment with the Brookwater Legal team or call (07) 3437 8555.
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External Resources
Brookwater Legal · This article contains general information only and does not constitute legal advice. It does not take into account your individual circumstances. You should obtain legal advice about your own situation before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
