Is Buying a Display Home a Good Investment?

The pros and cons of purchasing a display home

When exploring property investments, display homes often catch the eye for their immaculate presentation. But are they a good investment? In this article, we’ll break down the benefits and challenges of buying a display home, helping you decide if this option suits your financial goals.

First, what is a display home?

A display home is a professionally styled property used by builders to showcase their home designs and craftsmanship. These homes are often located within part of a display village in new estates and are meticulously maintained during their time as showcases. After their display period ends, they’re sold to investors or homeowners.

Why are display homes popular among investors?

Display homes appeal to property investors for several reasons. When purchasing a property for investment, you're usually looking for:

1. Proven Value in Prime Locations: Display homes are often located in desirable estates or growing communities, strategically chosen to highlight the appeal of the area. These prime locations make them a secure and appealing long-term investment option.
2. Premium Quality: Display homes include high-end, superior-quality finishes and professionally landscaped exteriors, showcasing the best of what a builder offers.
3. Minimal Maintenance: Builders maintain these properties, ensuring they stay in excellent condition. They are also professionally cleaned regularly throughout the week, meaning these stunning display homes are always beautifully presented and well looked after.

Challenges to keep in mind

While buying a display home has benefits, it’s essential to consider the potential downsides:

• Location Limitations: These display homes are often located in new estates, which may not experience the same capital growth as established suburbs.
• Minor wear and Tear: Despite professional cleaning, high foot traffic can leave minor scuffs or signs of use.
• Resale Challenges: Once sold, display homes often compete with other ex-display homes and similar properties in the same estate, which can impact demand.
  
  

How do display homes compare to other investments?

Here’s a side-by-side look at how display homes stack up against standard investment properties:

Since display homes are built with incredibly high-quality finishes and materials, the value of these items is often higher, which can lead to larger depreciation deductions—even if the display home is several years old. You can also claim depreciation on the home for carpets, flooring, and window treatments, which are always included in our display homes. We have a range of display homes currently open across Melbourne and Geelong and display homes for sale. 

Key factors to consider before buying

Investing in a brand new home within an ex-display village can be rewarding, but success depends on careful evaluation. Here’s what you need to know:

• Location: Research the growth potential of the estate where the home is located. You're also surrounded by other ex-display homes. 
• Depreciation Opportunities: Explore tax benefits available for depreciation on the home and its fittings.
• Exit Strategy: Plan for the long term. Will you sell, rent, or occupy the property once the leaseback ends?

If you want to learn more about buying one of our display homes as an investment property, check out our Investment Property Calculator. 

Is a display home the right choice for you?

A display home might be the perfect investment if you:

• Appreciate high-end finishes and professionally styled interiors.
• Value minimal maintenance during the initial ownership phase.
• Don't want to build a home from scratch and are interested in securing a completed house and land package.

However, it may not suit those seeking significant capital growth in the short term or those who prefer full control over their investment property. It's important to ask yourself, "Should I buy a display home?"

Frequently Asked Questions

Can I buy a display home as an investment?

Yes, buying a display home can be a great option for investors seeking stable returns and depreciation benefits.

Are display homes always located in new estates?

Generally, yes. Most display homes are built in emerging estates to promote new developments.

What are the pros and cons of buying a display home?

 Pros:  

• Premium finishes and fixtures, offering high-quality living or rental standards. 
• A home that has been built and maintained to the highest possible standard.
• Don't wait for the perfect home to be built - move right in with nothing left to do. 
• One contract - house and the land in one purchase price.

Cons:  

• Location limitations in new estates with slower capital growth.  
• Potential resale challenges if competing with other ex-display homes in the area.  

Can I move into a display home immediately after purchase?  

Yes, when you purchase a Carlisle Homes display home, you can move in as soon as the purchase is complete. Our display homes are ready for immediate occupancy, allowing you to enjoy their premium quality finishes and exceptional design without delay. Browse our available display homes for sale on our website.

Do I need to pay stamp duty when buying a display home?  

Yes, you must pay stamp duty on a display home like any property purchase. The amount varies depending on the purchase price and the state or territory where the home is located. We can help you calculate your stamp duty.

What happens when builders sell their display homes? 

Builders often sell their display homes once they are no longer required for marketing purposes. These properties typically feature high-quality finishes, well-maintained interiors, and fully landscaped exteriors, making them appealing to investors and homeowners alike. 

Are display homes considered quality homes?  

Yes, display homes are designed to showcase the builder’s craftsmanship and often include superior materials, premium fixtures, and the latest design trends. This ensures their high quality, making them attractive for investors or buyers seeking a dream home.

Can a display home become a dream home?

Absolutely. Many buyers choose display homes because of their premium features, stylish designs, and impeccable presentation. These homes can be ideal for personal use, combining luxury living with practical functionality.

Find display homes for sale at Carlisle Homes

Buying a display home can be a smart investment for those looking for stable rental income, high-quality finishes, and tax advantages. However, understanding the property's long-term potential is key to making an informed decision.

If you’re considering investing in a display home, Carlisle Homes offers an exceptional range of properties featuring premium fittings and fixtures. We have several display homes for sale across North and South-east Melbourne, including Geelong. Contact us today and consider buying a display home from our range.