If you’re looking for a new home with all the features and finishes, but not in a hurry to move in, display homes can make a great investment choice. There are always potential issues to consider, so take a look a see if this is the right investment for you.
Purchasing a display home means that you get a home that showcases the best design features that a builder has to offer.
Display homes are essentially a marketing tool for home builders and as they have people walking through them nearly every day, they are maintained to a high standard with regular professional cleaning and garden maintenance. The homes are always fitted out to the highest specifications (larger windows, stone benchtops, premium flooring, pools) and this can mean that you pay less for the property than you otherwise would have if you built the property yourself, and you have the perfect tenant!
The biggest appeal of owning a display home is the leaseback arrangement. This means that you purchase the building from the company, and they then lease it back from you for an extended period – and usually with a fixed term of 12 to 24 months with 6-month options to extend the lease. The advantage is that there is no vacancy period from handover, and you’ll have a guaranteed rental income for the period of the leaseback contract. This means you won’t need to pay property management fees, therefore increasing the value of your investment. Most leaseback arrangements are at a fixed percentage of the purchase price and paid monthly.
Once the builder feels that they can no longer generate sales from the display home or that the area has been ‘built out’ and there are limited opportunities in the immediate area, then they will notify you that they intend to move out. Once you have been notified, the company will then revert the display home back into a fully functioning home. Garages will be converted back from offices into standard garages, fencing will be reconfigured and if there are 2 display homes, they will be fenced accordingly.
Quite often the furniture used to stage the home will be offered to you to purchase, usually was a whole and usually at a heavily discounted rate (this will depend on the age of the furniture).
When you end up with a home that is in immaculate condition with established gardens and a high-end quality finish.
If you’d like to own a display home…
Bradford Homes currently have opportunities to purchase existing display homes. Please contact us if you would like to discuss the possibility of owning an exceptionally built Bradford Homes display home.