If you are in the market for a new investment opportunity, buying a display home and leasing it back to the builder might be worth considering.
Blogger: Peter Gianoli, general manager, Investor Assist
Imagine if you could buy an investment property with all the bells and whistles, offering a guaranteed rental return of around six per cent for at least 12 to 24 months. Imagine if this also came with perfect tenants who would keep the place spotless, having the home professionally cleaned a couple of times a week.
In fact, the tenants would be so good that you wouldn’t need for a property manager, so you save on those fees too. Does this sound too good to be true? Surprisingly, it’s not.
More and more investors are discovering the benefits of buying a display home and leasing it back to the builder at a guaranteed commercial rate for the life of the display village. These opportunities aren’t as easy to find as regular investment properties, but they do have the potential to offer impressive returns – just be sure to do your homework.
As with all property investments, buyers should exercise caution, and there are a number of considerations to take into account. The following points highlight the pros and cons associated with buying a display property as an investment:
Once you have considered all the pros and cons of buying a display home as an investment property, and you have stripped away all the incentives and benefits marketed by the builder and considered the investment fundamentals of the property, you’re looking at a great long-term investment.
Display homes are also a popular option with many first-time investors who are looking to minimise risk in the first few years of building a portfolio.
So if you are currently evaluating your property investment options, purchasing a display home is definitely worth your consideration.