How to Make Money Out of Display Homes

A display home, also known as a show house, refers to the “display” version of a certain residential property. Commonly found in most subdivisions, display homes were built as a mere showcase for those who are into home design. People who might be interested in the latest residential property building trends may find display homes to be a great source of inspiration. From the façade to the interior areas, these properties that are up for display are definitely must-see attractions, so to speak, for renovators and home builders. Display homes are just some of the most sought-after properties in all of Australia.

These residential properties that are up for display are often pleasing to the eye that many are wondering if it is livable in the first place. To begin with, most displays homes are built of high quality, and since there is an expected influx of visitors trying to draw inspiration from these properties, they are obviously well-maintained. However, not all people are keen on the fact that display homes are, in fact, worth an investment. How? They can, surprisingly, be purchased. The opportunity to take advantage of such, however, is not that easy to look for compared to the typical residential properties that are found in the market. But one thing is for sure, it is an investment that can generate good returns.

Unlike purchasing a real property—a home that is not intended for display—at a subdivision or village, trying to purchase a display home involves the builder of the home taking the leaseback option. Here, the builder or developer sells the home and leases it back for the long-term. They get to hold on the property, but rather as a tenant for 1-2 years. Also, there are other leasebacks that allow builders or developers to further extend the years in the lease. But for those who may find it enticing to take advantage of a display home, it is important that they make certain considerations before making that investment.

Indeed, buying a display home has numerous benefits. For one thing, the tenant is either the builder or the developer, but for the most part, it is the former who is in control of the contract. Usually, the tenant gets to hold on to the property to up to five years, depending on how long the display village is expected to be used for display purposes. And then he or she can hire new home builders to construct or renovate the home. Also, the display home is technically still as such, but it is also considered as a residence. This is due to the fact that the builder is able to pay the rent, and that taxes play a huge part in making it a residence.

Moreover, what makes it a great investment on the end of the buyer is that the display home is well-maintained by the builder or developer. While it is a display home, the outdoor area of the property is landscaped, and often undergoes professional cleaning. A buyer also knows that by investing on a display home, he or she would no longer have to deal with a property manager, which often entails having to exhaust property management fees similar to investing on real property on non-display homes. More importantly, once the builder is no longer leasing the property, other tenants may find it attractive.

Other considerations when investing on a display home include having to handle conversion costs. Obviously, a new tenant would want to make changes, and it is up for the investor—the buyer who just acquired the display home—to make it happen. If, for example, there is no heating system in one, it could very well mean hiring new home builders to install one just to satisfy the tenant, thus the need to ramp up additional costs.

There are numerous property investments that can be looked upon, and one of them is a display home. Display homes might be just used as intended, but some of them can make for a great investment.