There are many reasons why affordable display homes for sale in Melbourne represent spectacular value for money, and a promising long term investment.
One of the biggest benefits that attract investors to display homes is the guaranteed rental return for a number of years and a relatively high rental return during this time. Specifically, 7 or 8% can be expected for up to 5 years. What happens is that a developer buys all the land, builds all the homes and sells them to the public. One of these homes will be selected as being a display home, usually right in the best position in the community. As a condition of purchase, the developer/builder rents the chosen house for several years so that it can be used as a display home to tour potential buyers around. The rental rate during this display time is much higher than you could expect from a general tenant. After the period has ended, you are free to rent it out as normal.
Importantly, display homes are all generally built to an immaculate standard. Developers can afford to buy higher quality fittings and the like because they are installed in bulk across an entire display village, while still being able to offer a very inexpensive result. The display home is also going to be the pick of the litter, and is all about presentation. After all, the one purpose of a display home is to provide a visual and tactile representation of what the buyer can expect. Developers are logically going to take extra care in providing a display that is perfect in every way to convince as many buyers as possible to make a purchase. Though this will differ between developers, the display home is visited multiples times per week and so is often professionally cleaned at least once a week or fortnight. This is why you can move in after five years and it feel entirely brand new.
You know that display homes have been professionally maintained to an excellent standard. Buying a brand new display home means that your purchase is brand new, and that there are going to be no nasty surprises left over from previous owners. It is such a relief to have the peace of mind that there will be no plumbing, electrical or structural issues in the foreseeable future.
Display homes are rented at commercial (higher) rates, but treated as a residential building for tax purposes. Furthermore, you can claim depreciation on your display home. The builder has a clear interest in maintaining the property to the highest possible standard, probably higher than you yourself would maintain it.
Some things to look out for when buying a display home are the terms of the contract. There is no fixed start or end date for the lifespan of a display village, so you will want to make certain that you are aware of exactly when the builder’s lease is going to end. It may end sooner than you thought, leaving you without that great commercial rate, or it may drag out longer than you expected, which is not ideal if you were planning to move in yourself. Also double check who has to pay the outgoings. Often it is the owner and not the tenant, and these can add up over time. A display home strives to be as comfortable and inviting as possible, meaning lights and air conditioning will be on constantly.
That being said, the pros vastly outweigh the several potential cons, which are more things to watch out for than real downsides. To browse the current Display Homes Available For Sale in Melbourne, visit Bid Rhino.
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