Browse Forums General Discussion 1 Aug 04, 2019 8:27 pm Have you ever wondered, why builders sell their display home with high rental yield for couple of years, instead of keeping it themselves? Is it really beneficial for buyers or builders ? I agree that inclusions are high, but not sure about building standards. Is it something we need to inspect before buying such homes? Still we may not know what materials used . isn't it? Re: Display home sale 2Aug 05, 2019 8:39 am It's a good idea to inspect anything before you buy it.. particularly Display homes which can cost you Million$ I also recommend you search previously sold ex Display homes that get resold and note the price drop. The level of maintenance, other house real estate in the same area, etc. BTW The high rental yields are added into the builders/sellers price, It's generally offset by suppliers discounts. My2c, If the house turns out to be a lemon/unpopular they will terminate the lease quickly. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Display home sale 3Aug 05, 2019 3:52 pm kumar2015 Have you ever wondered, why builders sell their display home with high rental yield for couple of years, instead of keeping it themselves? Is it really beneficial for buyers or builders ? Your question suggests that the builders own the display home, and then sell it on when they are finished with the display. This is not usually the case. A lot of display homes are not owned by the builder, but are owned by an individual (who will often end up living in it themselves) and they rent the home to the builder for a couple of years. As to why builders generally work like this, I was told that well, owning the houses themselves is quite an initial financial outlay with business funds being then heavily tied into a non-liquid asset, and that their main business is in building, not owning real estate. My build with Inspired/ Como Homes: https://forum.homeone.com.au/viewtopic.php?f=31&t=93656 Re: Display home sale 4Aug 07, 2019 8:26 pm As a business, it doesn't make sense to hold on to the house. They sell the house in order to release the capital for cash flow purposes. The higher rental is built into the sale price so there is no bargain there. There is actually a lot of risk buying a display home, especially when most are structured on a sale and lease back basis. Eg, if the builder goes bankrupt, you will be left with a house that no other builder will rent and the display home agreement (eg homeworld) will usually prevent any use other than a display home, meaning no one can live in it - in short, you can't rent it to anyone and you can't live in it.... The display home agreement will have an expiry and you, as a buyer, will be able to live in it once it expire. Therefore, if the display home agreement is coming to an end, then the risk is substantially reduced as you have alternate options should the builder goes down. We already paid for somfy motors for the blinds. The quote above was purely for “pre-wiring” so the blinds company can install the motors and blinds. That’s why we… 5 8013 From what I know about water tanks (I've been working with a client on them for a few years now) is this - The concrete can last a lifetime if they don't crack for some… 2 6471 go upvc window frames ensure insulation under colorbond. not just sarking, lighter color roof also not sure if you have seen this viewtopic.php?t=5823 last couple of pages… 4 98073 |