Have tried archive but could not find reference to purchasing builder's display homes. Typically, if you purchase one (or more!) of these the builder offers to lease back for 18 month +18 month, with a return of 8%. Anybody have experience with these as an investment?
A careful read of the Advertiser will show some display homes returning 10% in Adelaide for a 5 year lease with the tenant to refurbish them when the lease expires. As they are a commercial lease in Adelaide they have to be for a minimum of 5 years.......I don't think most of the builders have worked that out yet.
I just bought a builder's display home for my first IP (have only had it one month) so I can't give much advice. But I am getting 9% return for 12mths lease with a 3mth option. The thing to watch is getting insurance. I found it very difficult to find an insurance co. that would insure it. The problem is that it is unoccupied at night.
I had to get a dead lock for the front door and window locks put on the windows. Also I went through a broker for finance and the first bank he approached would only lend up to 60% finance.
(Reasoning being: so many people walking through the house, they argued, would wreck the place).