Should You Buy a Display Home?

Whether you’re looking to buy your first house or have your first property investment, display homes can be a great option. So, what are the pros and cons of getting a display home?

Pros

To earn cash flow, builders generally put display homes for sale and then rent them back for two years. This means that display home buyers can yield high rental returns, ranging from four to eight per cent in Australia.

Generally, display homes also have the best quality of construction and are sold complete with the best fittings, appliances, fixtures, landscaping and sometimes even security system – perfect for those who want to live in the property after the display home season closes.

But these benefits also come at a price.

Cons

Display homes tend to be one of the most expensive properties on the development, making it more unlikely for investors to get similar level of return when selling.

Display homes are by nature open to everyone, meaning that hundreds (or even thousands!) of people will have trampled through the house by the time the display home closes. However, the contract in general stipulates the treatments that can be applied to the house before the buyer takes over, such as replacement of floor covering, renewal of the cooling/heating system, and more. Discuss the contract terms with the developer to make sure you’re getting the best house maintenance and treatments post-opening.

These houses also tend to have the most public location (for example, facing a main road) and the most open design (e.g. no fence, large open space), potentially making it a bit more difficult to retain privacy and quietness.

All in all, buying a display home comes with great benefits, but also some drawbacks to consider – take these with you to your next display village visit!

Sources: 1, 2