Could a Display Home Be Your Dream Home?
Have you ever walked through a beautiful display home and wished you could move right in? Well, you might be surprised to learn that it’s possible to do just that.
Display homes, which are “sample homes” built by developers to showcase the quality craftsmanship and design of their new homes, are often put up for sale once the development nears completion or the builder has sold a significant portion of the homes in the project.
These new homes have become increasingly popular among homebuyers and investors in Perth and regional WA, who are drawn to their stunning designs, high-end finishes, and move-in-ready convenience.
Some builders may even offer a leaseback arrangement, allowing investors to buy the display home and generate rental income while the builder continues to use it for marketing purposes.
But before you start picturing yourself living in your new display home, it’s important to weigh up both the benefits and potential drawbacks of this alternative home-buying opportunity.
In this article, we’ll give you the information you’ll need to make a confident decision about whether a display home is the right fit for your unique homeownership goals and circumstances.
The Benefits of Buying a Display Home
Display homes offer a unique combination of benefits that set them apart from other home-buying options.
Here are some of the key reasons why they’ve become such a popular choice for Perth home buyers:
1. Bypass the Building Process
While building a new home from scratch can be a highly rewarding experience, it also requires a time investment that not everyone may be prepared to shoulder. From finding the perfect block of land to managing construction timelines and budgets, the process can be time-consuming and at times even stressful.
On the other hand, buying a display home allows you to bypass the majority of the building process.
Although there may be a waiting period while the builder leases the home back for display purposes, this period can be shorter than the time it would take to build a home from scratch, and you’ll have the peace of mind knowing that your new home is already complete and ready for you to move in.
2. Luxury inclusions
Builders use display homes as a showcase for their best work, so they spare no expense in creating a home that will impress and inspire potential buyers. This means display homes typically feature top-of-the-line finishes and premium building materials and are designed in line with the latest design trends.
By buying a display home, you get to enjoy all of these luxurious inclusions without having to go through the process of selecting and sourcing them yourself. Not only does this save you time and effort, but it also ensures that your new home has a cohesive, designer look and feel.
3. Live Surrounded by Quality Homes
When you buy a display home, you’re not just purchasing a property – you’re investing in a lifestyle. Display homes are often located within expertly planned display villages or new estates, surrounded by other high-quality display homes.
These neighbourhoods are generally beautifully presented, with well-maintained streets and established landscaping.
Living in a neighbourhood of showcase homes not only provides a pleasant environment for you and your family but can also have financial benefits. The high-quality homes and attractive surroundings can contribute to higher property values, potentially leading to better rental returns for investors or increased capital gains when it comes time to sell.
4. Leaseback Rental Income
If you’re an investor or not in a hurry to move into your property, you could enjoy a guaranteed rental income stream from a leaseback arrangement with your builder.
A leaseback arrangement is when display homes are sold, but the builder rents the property back from the buyer for a set period to continue using it for display purposes. This typically happens while the builder is still completing other homes in the area.
During this leaseback period, the builder will maintain the property to the highest standards, reducing your maintenance costs and responsibilities as an investor. Plus, you might have the opportunity to purchase the display furniture at a discounted price.
5. Tax Benefits
Investing in a display home can offer significant tax advantages. Beyond their high quality and potentially higher yields, they’ll likely allow you to take advantage of more depreciation deductions.
This includes items like window coverings, flooring, hot water systems, and kitchen appliances.
These deductions can help to lower your taxable income and improve your overall return on investment.
6. Growth Potential
Display homes are typically located in new housing developments, which can offer excellent potential for capital growth and rental demand as the area becomes more established and populated. As more people move into the neighbourhood, the demand for rental properties may increase, potentially leading to higher rental yields and improved capital growth over time.
Why You Might Choose Not to Buy a Display Home
While display homes offer many benefits, it’s essential to be aware of some potential limitations before making the decision to buy.
Here are a few factors to keep in mind:
1. Customisation Options
Since display homes are designed to showcase the builder’s work and available upgrades, the floorplan and design elements are already been chosen for you.
Some homebuyers may find this convenient, as it eliminates the need for them to make the decisions.
However, if you have a specific vision or want to make significant changes to the layout or style of the home, a display home may not be the best choice. In such cases, building a new home from scratch might be a better option, as it allows for greater flexibility in design and personalisation.
2. Wear and tear
Display homes are regularly open to the public for viewings, which means they have experienced more foot traffic than brand-new homes. While builders take great care to maintain and clean their display homes, there is a possibility of some wear and tear, especially if the home has been used for display purposes for an extended period.
3. Location
Display homes are often located in new, developing areas, which may be further from established amenities and city centres. While these neighbourhoods offer the potential for future growth and development, it’s important to also consider your lifestyle needs and preferences.
Factors such as proximity to work, schools, and other destinations, as well as access to public transportation and amenities, should be carefully weighed. Keep in mind that new areas may take time to develop, so if immediate access to a wide range of services is a priority, a more established suburb might be a better fit.
Of course, if you’re excited by the prospect of being part of a growing community and are willing to be patient as new infrastructure is added, a display home in an up-and-coming neighbourhood could be an excellent choice.
4. Stamp duty
When you’re building a new home, you only need to pay stamp duty on the land itself. However, when you buy a display home, you must pay stamp duty on the cost of the land as well as the total value of your home.
While this can be an important financial consideration, it’s worth weighing this cost against the many benefits of buying a display home, such as the potential time and money saved on the building process and the inclusion of premium features and finishes.
Is a Display Home Right for Me?
Buying a home is one of the most significant decisions you’ll make, and it’s essential to consider all your options carefully. Display homes offer a unique combination of benefits, from luxurious inclusions and quality surroundings to potential leaseback rental returns and reduced maintenance costs. They can also provide excellent opportunities for capital growth and rental yields as the area develops.
However, it’s important to weigh these advantages against your personal priorities and circumstances. If customisation is important to you, or if you prefer to live in a more established area with immediate access to amenities, a display home may not be the perfect fit.
Ultimately, the key to making the right choice is to take the time to understand your needs, preferences, and budget.
At Plunkett Homes, we’re committed to helping you navigate this important decision with confidence. Our award-winning team is here to answer your questions, provide expert guidance, and help you find the perfect home to suit your unique circumstances.
Explore our stunning range of display homes in Perth and regional WA, or reach out to our friendly team to discuss your options further. Whether you’re a first-time buyer, a growing family, or a savvy investor, we’re here to help you turn your homeownership dreams into a reality.
