Hi All,
has any one had any experience or opinions/thoughts on purchasing a display home.
i understand most of the risks etc
locked in for maybe 10-15 years before getting the house for yourself
lots of wear and tear on the property
etc etcsome company's contracts like Metricon, Henley, Clarendon home work out at genuine market price for the home and a 8-10% return.
Now I also subscribe to the theory that if it appears to be 'to good to be true' it generally is.
Thoughts anyone??
Thanks
I have looked into it and they often seem to have inflated prices. If you are able to get one for the real cost then you are getting a good deal.
You should be able to negotiate a deal where they pay to put the home back to as new condition before returning it to you. They would replace the carpets, set up the garage as a garage rather than the sales office etc.
I wouldnt count on 10-15 years though. most only sign contracts with short term options, at their choice whether they extend or not each time. I would work out my figures based on 2 years, rather than an extended period of time as this is likely to be the longest guaranteed rental period they will offer.
Pretty much as Matt points out – most display homes are refurbished before hand over including carpets, painting and anything which has had excessive wear and tear (just think about 100 people each weekend opening & closing kitchen cupboards, turning on taps, slamming doors, sliding wardrobes etc.
Areas to be wary of are the toilets (some are dummies), garages (as above), air conditioning units/hws (may be quite deteriorated or nearing the end of their lives).
The one big advantage is that you are locking in a tenant in an area which will only be more developed by the time it becomes vacant.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
