6 Advantages of Buying A Display Home
Display homes are builders' opportunities to showcase their highest-quality builds and finishes, while promoting the new developments in the neighbourhood. A display home allows potential buyers to experience exactly how their dream home can feel if they choose the builder. However, display homes can also be bought. What most don’t realise is that while the display home acts as a display to what is on offer - display homes themselves can also be purchased. And there are plenty of benefits of purchasing a display home. Whether you’re looking to buy a house as an investment opportunity or to find your dream home, these are the advantages to consider in buying a display home. Display home vs. custom build – what’s the difference It’s important to remember that a custom-built home is not a display home. A display home is built as a “display” to prospective buyers in a new village or neighbourhood. On the other hand, a custom-built home is a display home built specifically for your needs and wants. In other words, a display home is like a demonstrator vehicle that people test drive before buying a new car (custom build). Display homes are built to showcase the building company's clean finishes, functional layout, high-quality materials, and style, to the new community. Display homes are often sold after the building company no longer requires them. Based on the display homes, custom-built homes are tailored to the buyer's lifestyle and preferences. From the layout to the materials and finishes of the house, buyers have control of every aspect of their new home. 1. Guaranteed short-term rental return If you’re an investor, display homes offer an ideal opportunity to guarantee short-term rental returns from a leaseback agreement with the builder. A leaseback agreement is an arrangement between the investor and the builder when display homes are sold. The buyer of the display home can rent the property back to the builder for a set period to continue using it for display purposes. 2. Claim tax benefits Buying a display home can offer significant tax benefits. Tax depreciation deductions are available for items and finishes in the home like flooring, window blinds, air conditioning, and kitchen appliances, saving thousands of dollars. Display homes also typically offer higher-quality yields (measurement of future income on investment) because the builder pays rent at a commercial rate instead of a residential rate. Between tax deductions and higher yield, buying a display home can offer a larger overall return on investment. 3. Skip the build process As home builders, we understand how rewarding building a home can be – however, we also know it is a process not everyone is prepared to take on. A display home allows you to buy a new home with the highest-quality materials and finishes a builder offers in a new neighbourhood without going through the time-consuming and daunting process of building your own home. 4. Be part of a new community Buying a display home offers buyers the opportunity to be part of a new community. Display homes are often located in new housing developments to promote the area for potential home builders. These new neighbourhoods are in a premium location, which attracts more home buyers and builders, creating an established community. 5. New home feel While the for-sale display home may be between one and three years old, it has never been lived in and is regularly maintained. Before the display home is sold, it is in the best interest of the building company that everything, from the garden to the kitchen appliances, is in top-notch shape to showcase their work properly. This keeps the home having that “new home feel” that we all know and love. 6. New home warranty In Queensland, a building warranty on new homes lasts for up to six years and six months after the build’s completion or termination of the building contract. This building home warranty allows you to submit a claim in the event of any defective work on the property at no additional cost. In addition to the new home warranty, some appliances, like ovens, dishwashers, and washing machines, in the home may still be under manufacturer warranty coverage. Choosing your Display Home At John Munro Builders, we are Townsville local’s trusted partners in building their dream homes, including our display homes. If you’re looking to buy a new home or want to invest in property, a display home may be the ideal option. Contact the John Munro Builders team today to learn more about our display homes and what we offer.