Hi Dolph,

We have just purchased a display home in NSW. Our aim was not for investment rather as own occupied upon the end of the lease back.

The deal is quite good. The rent is 5.5% of the purchase price. All outgoings such as council, water and community title rates are paid by the builder during this lease period.

The other guys are right, land/ house packages are currently being sold. Until that is finished our lease will continue.

The things you must look out for are :
1.” insurance” this can be costly as most insurers do not like insuring display homes due to public liability and having no one occupying the home at night ( higher theft risk)

2.If your home is to be mortgaged, your mortgagee may need to sign a mortgagee’s deed depending on what type of agreement the builder has with the display village.

Other than these complications we encountered so far, all is going okay… and lastly we are just waiting for the lease to end so that we can move in.

Best to check with your accountant and solicitors relating to all the nitty gritty parts of the contracts and lease!!

Meanwhile good luck!!