The real estate business in Australia shows that buying display homes in capital cities can earn you as much as 8 percent. Display homes in Perth have become very attractive for investors these days. Buying display homes in Perth is advantageous these days in that the home builder will cover most of the outgoings of the houses including its insurance. The builder tends to lease back the display home at commercial rates rather than residential rates. This will give the investor a higher return compared to normal housing transactions. The lease usually runs for two to three years and in most cases much longer.
Many experts believe that display homes are of better quality than other homes primarily because they are subject to the scrutiny of the public. The house builder puts great effort in building it and in placing details to the house. There are even some display homes that are recipient of the Master Builders Australia award which makes them even more attractive to the market.
The display homes are built to impress buyers. Builders usually furnish the house with state of the art luxury extras including a fully functional air conditioning unit, advanced alarm systems, attractive house fixtures and fittings. Even the house landscaping is perfectly fashioned with special outdoor effects and sophisticated water features.
Builders display their craft and ingenuity in display homes so one is definitely sure that they are of good quality. The president of the Real Estate Institute of South Australia added that display homes are normally kept in pristine and perfect condition because they are the shop front of the builders.
These display homes might have a lot of positive reviews; however, on the other side of the coin, there are also issues that one needs to take note of in buying display homes.
• When the builder moves to another project, the return in investment will drop. The reason for the lowered income is that the residential rental market will not agree in paying the same comparatively high rates. At this point, most investors sell the house or move in the house themselves.
• Display homes are not available all the time and there is only a minimal number of units dubbed as display homes in every builder’s project. If you are an interested investor, you will have to wait before buying another display home.