Display homes, also known as show homes, are becoming increasingly popular within the Australian property market.
But what exactly are these properties and how does one go about buying them?
In this blog post, we delve into the ins and outs of buying a display home.
What is a Display Home?
Display homes are essentially model houses built by residential home builders to showcase their design, craftsmanship and the potential lifestyle a buyer might expect.
They often reflect the latest trends in architecture, interior design, and technology, and are meticulously built to attract potential buyers.
Benefits of Buying a Display Home
Cost Savings and Investment Opportunities
Display homes can sometimes be more affordable than a new build and often come fully equipped with high-end appliances and features, which could lead to potential savings.
High-Quality Finishes and Design
As these homes are built to impress, they often feature superior finishes and upgrades not typically found in standard houses.
Many appliances and systems within the house may still have warranties in place.
Rental Return Possibilities
With a leaseback agreement, the builder often rents the property back from the owner for a specific period, providing a steady income stream and very reliable tenant.
Process of Buying a Display Home in Australia
Buying a display home involves a few simple steps.
Research and Inspection
Explore various developments and inspect potential homes. Note the quality, location, and amenities.
Examine the cost of the property and potential return on investment, especially if a leaseback agreement is in place.
Have a lawyer review the contract, especially details about the leaseback period, repairs and the condition of the property.
Negotiation and Purchase
Once you're satisfied, negotiate terms and finalise the purchase.
This may include the leaseback period, final settlement, and eventual moving in.
Risks and Challenges of Buying a Display Home
Despite the many advantages, buying a display home does come with potential challenges.
Wear and Tear
Since these homes are open for public viewing, there might be minor wear and tear.
Like any other property investment, a market downturn could impact your home's value.
During the leaseback period, you may not be able to move into the property immediately.
How to Mitigate Risks
Here are some steps to help mitigate potential risks.
Inspection and Surveys
Have a thorough inspection and survey of the property.
Engage a Real Estate Lawyer
A lawyer can help you understand the complexities of the contract.
Make sure the investment aligns with your financial goals.
Understanding the Leaseback Agreement
Knowing the details can prevent future misunderstandings.
Tips for the Successful Purchase of a Display Home
If you're considering buying a display home, here are some tips for success:
- Inspect the property thoroughly.
- Don't shy away from negotiations.
- Understand your financial and legal obligations.
- If the home comes with a leaseback option, make sure the terms are favourable.
Display homes offer a unique investment opportunity with a plethora of benefits like cost savings, high-quality finishes, and potential rental returns.
However, like any investment, they come with their share of risks. But with careful consideration, due diligence, and a good understanding of the contract, buying a display home in Perth can be a worthwhile venture.
For more information or advice on purchasing a display home, feel free to get in touch with us. We're here to help guide you on your home-building journey.