For many people, walking into a display home is the first point of contact when looking to build. For others, a display home is an opportunity to purchase a home that offers a clear picture of a potential lifestyle. 

Display homes can be highly sought after. Their model designs and instant satisfaction offer a lot to the home buyer. There are of course pros and cons to buying a display home or an ex-display home, but for the most part, purchasing a display home can mean peace of mind that the shiny new home you’re buying is exactly what you see. 

Many building companies construct display homes to demonstrate their skills in house design and construction. Most display homes are built to the highest standards and use high-end fixtures to allow potential customers a chance to see what’s possible. Some display homes are even built within display home villages, which can comprise multiple high-quality homes built by a variety of different builders. In this instance, you can find beautiful yet different homes standing side by side. 

Display homes essentially allow people to view contemporary collections and to see the final result of what a future home could be. 

It’s not uncommon for builders to sell their display homes before they’ve finished with them. With this in mind, you can purchase a display home and then earn rent from the builder while they are still building in the area. 

Leaseback rental return is one of the biggest pros when it comes to buying a display home. The rent is usually paid at a higher rate than that the average rental rate, making a display home a great option if you don’t plan on living in it straight away. Investors can also benefit from depreciation on the home while saving on property management fees. The property is also taxed at a residential rate even though the rent is being paid at a commercial rate. 

Display homes showcase the best of what some of the most awarded builders can achieve, meaning they are kitted out with the best fittings and fixtures. These include fittings and fixtures that may be out of reach budget-wise if you were to build a home from scratch, such as quality bi-fold doors and windows. 

Display homes often have a built-in discount, and they generally sell for less than their true value. Buyers have more bargaining power, as builders want to sell quickly to invest in other projects.

Quality display homes are generally chosen for their location and exceptional growth corridors, meaning you can purchase a home in an up-and-coming suburb. This can mean great resale value and sensational capital growth.

Many homeowners building from new underestimate the high cost of landscaping. Not only is the landscaping done for you in a display home, but it’s also usually well-established by the time you move in. Gardens and outdoor areas will be maintained by the builder while it’s a display home.

If the home is part of a display village, then it’s likely to be surrounded by other quality homes built to an exceptional standard. While a good rule of thumb in real estate is to buy the worst house on the best street, buying into an ex-display village can mean buying into the best house on the best street at an affordable price. 

Buying a display home means you’ll need to pay stamp duty on the total value of the house and land, not just the land. 

With everything having already been done, you won’t have creative control on the finished product. Decisions have already been made, from the fittings and fixtures to the furnishings. 

While display homes are usually in locations with lots of amenities, this can mean you’ll be located close to some busy roads. Builders often build display homes in easy-access locations, which can be negative for some buyers.

Display homes are meticulously cleaned every week, but you can’t avoid the fact that hundreds if not thousands of people could have walked through your home. It’s inevitable that there will be some wear and tear, despite it not having been lived in. Depending on when you officially move in, the warranty period on some appliances may have expired. 

There are no laws in place for a rental guarantee, so you’ll need to ensure that you lease to a reputable builder that will meet their financial obligations. Display villages also don’t usually have fixed end dates, so a builder could finish the lease period sooner than expected. 

While a display home may sell for less than it’s actually worth, you’re still likely to pay a high price for it. Display homes feature all the bells and whistles and some of these you may not actually need. By building from scratch and removing the bells and whistles you don’t want, you could save money. 

As with any major purchase, do your research. Almost everything is included when you buy a display home but there will still be some exclusions to bear in mind. Read the fine print and weigh up the pros and cons. Know your options and make a smart decision.