Is Buying A Display Home Beneficial?
Buying a home is a significant investment. It requires time, effort, and budget to finalise a home for a person. But when it comes to the type of house one wants to buy, there seems to be a lot of confusion between a display home or building a new home. First, let’s talk about what is a display home?
What is a Display Home?
A Display Home, or a showhouse, is a model home for displaying houses in a subdivision. Buying a display home is an ideal way to buy a new house by skipping the building process. The builder purposely built it to show a final product of their expertise, quality, and capability.
Display homes allow the customers to visualise what their home will look like once it is done. It is the best way to experience the layout, design, and ambiance of the house.
Pros of buying a display home
The pros associated with the buying of display home are:
1. Premium fittings and furnishings
Buying a display home is the best way for a builder to showcase their quality craftsmanship. These houses are renowned for their style and quality. The major benefit is that these houses are fully equipped with the best fittings and fixtures you may not be able to afford if you decide to build a new house.
2. Leaseback rental agreement return
Leaseback is an arrangement where the builder leases the house from the buyer for a specific period of time to use as a display home. This agreement offers higher rent than the standard rental fees providing a huge profit.
3. Perfect for investors
Investors can benefit from potential leaseback rental returns. This means that you can own a property with zero maintenance costs since the tenants/renters have already catered for that while paying you rent to create a second source of income. Moreover, you can either move in or sell the house with good profit depending on the real estate market during the time of sale.
4. Save money on landscaping
Landscaping a new house takes a lot of money. The money on landscaping can be saved as builders of the display houses have already done that for you.
5. Quality surroundings
If your home is part of the display village, there must be other ex-display homes around it. These houses are too exceptionally beautiful and well-presented. The benefit of buying a display house is that the surroundings are luxurious as well.
Cons of buying a display home
Before you decide to buy a display home, you have to consider some drawbacks as well:
1. It is not a new home
Several potential clients can visit the house over the leaseback period. However, bear in mind the house didn’t have occupants at the time — potential customers were there for a bit.
A major disadvantage of display homes is that you don’t always get your desired location, while if you really want to build a new home, you can always buy a place with a great location close to the necessary amenities. Display villages are often in great locations but are in proximity to busy roads and places that the buyers do not like.
3. Limited customisation
Display home furnishing and designing is already done; hence, customising the house according to your needs is limited. Customising these adds to your budget. Building a new home allows you to choose your preferred design, fittings, interiors.
You have the privilege of buying complete furniture packages according to your taste.
4. Stamp duty
Another disadvantage of buying a display home is that you have to pay stamp duty on the price of the land and the house. While if you opt for building the house, you have to pay for the price of the land only as the house is not yet built.