Many investors are now discovering the benefits, of buying a display home and leasing it back to the builder, at a commercial rate, for the life of a display village.
These opportunities are not so easy to find and investors, should always exercise caution.
Here are some benefits and points to consider, when investing in a display home:
- Guaranteed tenant (the builder)
- High rental yield (commercial rate- tenant is the builder)
- Investment property is still treated as residential for tax purposes
- Display houses are often highest quality
- Depreciation can still be claimed
- High short term returns can generate your next deposit
- Gardens/outdoor areas will be maintained by the builder during the period the property operates as a display home
- Builders/developers will have the property cleaned professionally on a regular basis
- If the property is part of a display village, it will be surrounded by quality homes on an attractive street
- Highly likely to attract quality tenants and premium rent after it is no longer leased by the builder
- Look for builders who use an independent valuer to set the purchase price
- Many of the appliances will be high spec and brand new, with high quality fixtures and fittings
- Use a self management platform like RealRenta and reduce your Property Management fees by thousands
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