Display Homes

Hi,

My friend mentioned its a good idea to invest in display homes. I was looking at investing in melbourne, perth or QLD. Need some help on how to find display homes for sale and is it worth investing. Any good builders i can go with. My budget is under 350k.

Kind Regards
 
From a finance perspective some lenders will not deem display homes as acceptable security and others will have LVR restrictions so do your homework.
 
and your very unlikely to find one under 350k. They are usually speced up to the nines and are a lot more expensive than a normal home.

Ask your friend why he thought display homes were a good investment.

Was it the guaranteed rental renturn?

The fact the building is finished to a higher standard than normal?

They are built in a growing area with lots of new homes nearby?
 
Hi,

My friend mentioned its a good idea to invest in display homes. I was looking at investing in melbourne, perth or QLD. Need some help on how to find display homes for sale and is it worth investing. Any good builders i can go with. My budget is under 350k.

Kind Regards

In WA they are generally advertised on the Builders websites along with realestate.com.au but you have to trawl through the new subdivisions to find them.
I doubt you would find one sub 350k in Perth or WA regional areas.
 
What's your chosen investment strategy? Are you investing for - CF or CG in the short to mid term?

If its CG I would suggest not purchasing a display home because most are built in outlaying areas where the supply of new housing/vacant land far outstrips demand. There is no consumer competition to increase purchase prices.

Having worked on display homes in a trademan capacity, I would not purchase one from a quality perspective either. They are bashed up so quickly and there are a lot of short cuts taken that are band-aided & hidden out of sight the consumers can not see. ie roof cavity, service ducts, cupboards etc.

Sure, you can get a guaranteed rental for 2 years etc but you also have to make sure of the current weekly rents plus you are not just getting your own money back in rental income from the builder from paying an over inflated price in the first instance.

I hope this provides some food for thought.
 
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