Hi All,
Just curious why there is not more interest in investing in display homes.
Most of them have a lease back of 7% or more for the 18 months or so. They are normally in great position, for capital gain after the term.What’s the general idea out there, on these.
I think they are pretty good, am I missing something?Miracle Home Loans
Negotiate your interest rate!My accountant went for one of these and at the end of the lease sold up and did very well out of it. That was a deal struck 2 years ago and sold 6 months ago.
At this time in the cycle you might not get any real capital appreciation and more than likely a value drop as the house moves from brand new to second hand status. Also the rent in the real world might not be anything near what the builder will pay you today if you decide to hold it.
I agree with qwerty.
The other thing is that they tend to be in new housing estates. I dont reckone they appreciate as much as developed areas.
The other thing is that they tend to be on busier streets within the housing estates so they get more people through the display home.
Hi Miracle,
My recollection of Display Homes is the same as Yack’s they are usually on one of the main entry point into the new estate and as such will always suffer from ‘noise’ issues.
The few I have looked into seemed a little overpriced and as such I figured that I was going to be paying for the good returns too.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Miracle,
My 2c worth…..
My ex brother-in-law was a builder with a very large, and quite reputable company some years back, and he told me that many “display” homes, albeit made to look awesome (“WOW” factor) with all the trimmings and thereby luring potential buyers, they are generally put together in a rush, and as such are prone to headaches later down the track.
Apart from this, they are overpriced, and often arguments for inflated price-tags will be justified by all the little “extras” they include, like ducted heating, air-con, expensive carpet, non-entry level fixtures, walls and roof!!!!! (Just kidding with the last 2) [laugh4][laugh4]
As for position…..have you noticed WHERE they are positioned in comparison to the rest of the “new estate”?? Normally on main roads, and are often built on the smallest block possible – after all, they want to sell the house, not the location and/or the land it is on!!
As for buying ex-display homes……[idea]why pay 400K for a property realistically only worth say 300K (and spend an extra 50K to bring it up to the same level, and have save 50K to boot????!!!! [cigar]
Jo
You must be logged in to reply to this topic. If you don't have an account, you can register here.
