Owning a display home means earning a future investment income of 7% annually and receiving sure rental fees for a specific contract length. Know more about display homes and learn why it is such a huge asset.
The What and the Why
Property developers build display homes to show various designs to potential clients who would like to see the properties and the materials used. These houses are sold because they are not part of the builder’s future plans.
When you buy an existing display home, you cannot live there at once because of the ‘lease-back’ deal you need to satisfy. For the first five years, the builder can rent the property for display functions at a higher price compared to the average fees.
This way, you earn more while having a tenant who is equally concerned about the house. Maintenance will never be an issue and you will enjoy tax deductions while your builder-tenant pays for the insurance within the rental period.
You are also sure of first class quality when you buy this kind of home. Since it is a model house, it will have high quality furniture, fittings and landscaping. Besides, developers from Novus Homes say display homes in Perth are in good locations.
Display Homes for Sale
Before buying a display home, make sure that you are satisfied with the terms of the contract. Choose a reputable company and consult with a professional who knows the market well. Though display homes offer good returns, some properties offer regular returns after the lease-back contract.
With developers leasing the display home at a higher rental price, it seems a worthy investment. Like any other investments, however, consider all aspects before you make a decision.