Buying A Display Home

ewan · Oct 22, 2007 2:58 pm

I was thinking of buying a display home recently. I really liked one and its on the market. It is purely for investment purposes only.

Wondering if you can provide any opinion on the positives and negatives, and past experiences.

thanks

adamtram · Oct 22, 2007 3:08 pm

Hi ewan,

We are currently renting an Ex-display home, when we moved in it was like brand new, fresh paint and carpet. The advantage is they are very well looked after and low maintaiance garden (all of which the builder will maintain), also are you planning to move in after or is it purely investment and either sell or rent out when finished as a display home?

ewan · Oct 22, 2007 3:13 pm

Thanks for the reply

I'm not sure what to do with it afterwards, which kinda worries me, as I wont have any income after the leaseback period.

brittany · Oct 22, 2007 3:30 pm

Cranbourne 2001 median house price $170,500 2006 $220,000
Hoppers Crossing 2001 $159,000 2006 $230,000
Craigieburn 2001 $151,000 2006 $250,000
I would assume a ex display home would be far above the median.
How much can you rent a house for in these suburbs?

adamtram · Oct 22, 2007 3:36 pm

ewan

I'm not sure what to do with it afterwards, which kinda worries me, as I wont have any income after the leaseback period.

even if you sell it after that period i am assuming it would be 3-4 yrs, you should make a handsome profit or lease it out, there will be plenty of people renting while they build

arkraider · Oct 22, 2007 4:20 pm

Ewan, if you get in early enough in a new estate buying a display home, there will be pletny of advantage.
No. 1 being that while they have it still as a display home the builders generally pay around the 8% mark, if the interest on the loan is only 9.25% then you only need to add 1.25% each month. Good return.

No.2 as stated earlier there is always people looking to rent these days...

No. 3 sell it as soon as the display is closed and make a handy as ex display homes are good money earners.....

Adrian B · Oct 22, 2007 8:46 pm

I Think the Grandview my th big M in Cranbourne was listed at over $500k, well over the prices of surrouding areas.

eimaj · Oct 23, 2007 3:23 pm

Adrian B

I Think the Grandview my th big M in Cranbourne was listed at over $500k, well over the prices of surrouding areas.

I agree Adrian. Also some displays listed in Caroline Springs at over $700k :shock:

and Lyndhurst over $500k - far too pricey for these areas in my opinion, where most surrounding homes would be a couple of hundred thousand less. The builders lease-back might look high, but then you're paying a higher price to begin with.
If its for investment/rental I'd be looking in a much lower price bracket, closer to the suburbs median value.
When all the decoration and furniture is pulled out, it's just a house

Eimaj