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The Pros and Cons of Buying A Display Home

By November 10, 2020 No Comments

There are a number of Pros and Cons involved in buying a display home. At AirDesign, we are often asked by buyers what these might be.

Here are some of the Pros:

Premium fittings and fixtures: Display homes are renowned for their superior quality. Display homes showcase the best of what builders can offer their customers. They are typically fitted-out with top-line products that you may not have been able to afford if you opted to build from scratch. All design elements are taken care of for those who find decision making a stressful and tiresome exercise. They are generally meticulously cleaned and cared for.

In addition, buying the display home furniture and decor items such as artwork means your interiors are already professionally styled. For those looking to maximise their returns quickly on the short-term rental market, this is ideal.

Surrounded by other quality homes: If the home is positioned within a display village, it’s likely to be surrounded by other ex-display homes that were finished to an exceptional standard in a beautifully presented street scape where the and landscaping would likely to have been already developed. The local ambience of a stunning streetscape is one of the most attractive benefits of buying a display home.

Leaseback/ rental return: If you’re not in a rush to move in, sometimes builders may sell their display homes then rent them back from the new owner. Since the rent will often be at a higher than average rental rate, you stand the chance to make a good rental profit.

They’re ideal for investors: With house, land and furniture sorted, all the investor needs to do is rent out the entire package for higher than normal rental returns on the short-term rental market and still claim depreciation on the home and all of the inclusions.

Here are some of the Cons:

Stamp duty: Buying a display home comes with the drawback that you have to pay stamp duty on the total value of both the house and the land. Opting to build new, gives you the benefit of paying stamp duty tax on the price of the land only since the house has not yet been built.

Limited scope to personalise it: When you build a new home, you’ll have creative control to select all your favourite fittings and fixtures to make the home your own. When you purchase a display home, those decisions have already been made for you. Although you can always make some changes and updates to suit your personal taste and style, it will come at an additional cost.

Location: Most estates in new and emerging suburbs are located within close-proximity to major arterials and shopping facilities. While this can be great in terms of connectivity for either home owner or short-term tenant, they may be a little closer to those main roads than say if you chose the land yourself.

It’s not brand new: While a display home will still be relatively new and fitted with premium fittings and fixtures, it’s not brand new. Although these properties are regularly cleaned, it’s inevitable that they will attract some wear and tear. If the display home is several years old, the warranty period on the some of the appliances may have also expired.


CONTACT US for more information on our Property Buying and Advocacy services.


Author AirDesign

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