Buying A Display Home: Pros and Cons Explained 

A display home is a house built specifically to showcase a builder’s designs, workmanship, and finishes in a new development. Display homes let buyers visualise the design of a new build, and are typically sold once the estate is complete. 

Whether you're looking to purchase a home or an investment, buying a display home is a viable option. We’ve compiled a list of the pros and cons to help you make an informed decision.  

Pros of Buying a Display Home  

Shorter wait time 

Building a new home takes time - depending on the complexity of the build and factors like material and labour availability, it can take anywhere from 12 months or more to complete the build. 

Buying a display home allows you to skip the entire waiting process for a new home and move in right away. 

Luxury finishes and inclusions 

From high-quality building materials to contemporary home designs, a display home represents a builder’s best work. Display homes often come with luxury finishes and inclusions such as premium benchtops, high-end kitchen appliances, skylights, custom cabinetry, and a cohesive interior design.  

Rental income  

Many display homes are sold with a leaseback arrangement, where the builder agrees to rent the home for a fixed period. This lease usually guarantees a higher rental income than the average market rent.  

The builder also covers the utility costs and maintenance while the lease is active. This arrangement has a strong appeal for investors as they can simply collect consistent income without having to find tenants or deal with property management early on.  

Tax benefits  

If the home is purchased for investment purposes and leased back to the builder, tax deductions are usually available for depreciation, interest payments, and ongoing maintenance costs. 

As the builder is the tenant during the leaseback period, the home is typically kept in excellent condition, resulting in fewer repairs and unexpected expenses. 

Future property appreciation  

Display homes are located in new or growing suburbs. As the area improves and more homes are built nearby, property demand can go up, increasing the home's value over time. Keeping the home, whether as an investment or your future home, can be more valuable in the long run.   

Cons of Buying a Display Home  

Lack of customisation  

Display homes are pre-built to a fixed design. Unlike a new build where you can choose the layout, finishes, and fixtures, a display home is already finished. 

If you want to change the kitchen layout or add an extra bedroom, it will need to be renovated. What you see is what you get, so consider carefully if the home meets all of your preferences. 

Stamp duty costs 

When buying a display home, stamp duty is calculated on the total purchase price. This is different to buying a house and land package for a new home, where stamp duty only applies to the land component.  

Located in developing areas 

While display homes are located in areas that are primed for future growth, they may not yet have the amenities, schools, public transport connections, or community feel of more established suburbs. If you plan to live in the home once the leaseback ends, consider current amenities and the timeline for new infrastructure.   

John Munro Builder has display homes in the Harris Crossing estate in Bohle Plains. We also offer a range of house and land packages in Townsville that simplify the process of buying a new home. Get in touch with our team today to learn more about our home designs, or visit our display home to see the quality builds for yourself.