Next time you look around a display home, stop and think: you may be standing in the middle of your best investment yet.
Display homes offer a range of extremely tempting advantages, from guaranteed rent for a set period, to high yields of up to 8% pa, as well as reliable tenants with a vested interest in keeping your property ship shape.
Display homes are also a popular option for many first-time investors who are looking for some ‘surety’ to minimise risk in the first few years of building a portfolio.
If you are currently evaluating your property investment options, purchasing a display home is definitely worth your consideration.
Empower Housing Group WA provides display homes with 100% financing. Unique to the market and available on all display homes located across Perth. Available for most types of investors and buyers including SMSF's.
Financing is a mixture of first and second mortgages available from our financing arm Platinum Mortgage Management.
For an investor who’s only ever bought property via more conventional means, the method of purchasing a display home may seem a little odd. Typically what happens is that a developer buys some land in a high-profile area and puts together a display village, marketing all the properties on the site directly to buyers.
Builders will usually look for a display home site where the action is, in a quality development with access to a large number of blocks of land. At a certain stage during the building process, or when it’s just finished, the Display home is offered for sale with leaseback from the new owner.
Leaseback is when you purchase the house and rent it back to the builder for anywhere between 12 months to 3 years. The builder uses the house as a display home and in return pays the owner a fixed rent. The rent varies but is generally higher than what someone would expect to earn renting the property to a tenant on the traditional rental market.
One of the primary incentives is the guaranteed high rental yields display homes often produce. Returns of up to 8% pa for a residential investment is above-market. Traditionally, a residential property will show a much lower return and there’s no maintenance issues for the owners/investors.
The rental is guaranteed for the lease period, and in many instances the lease may be extended subject to the life of the display village. After hand over, the investor will have a great new home suitable for re-leasing or, as many investors do, move into it.
Display homes are relatively scarce and can often be difficult to find.
We sell display homes from Australia's prominent builders.
Homes across Perth suburbs are finance-ready and up to 100% LVR financing is available.
The benefits of choosing a display home over a traditional home:
Once you have considered all the pros and cons of buying a display home as an investment property and you have stripped away all the incentives and benefits marketed by the builder and considered the investment fundamentals of the property, you’re looking at potentially -- a great long-term investment!
Being prepared. Come back soon.
I can assist you with selecting the right property, providing a suitable finance product and if required, all the documentation and mortgage for a purchase using a SMSF.
Disclaimer: Accessing and using any information from this site is on the condition you read and agree to the following. Before making any financial commitment to any property you should seek professional advice from a qualified and registered financial advisor. While every attempt is made to keep the information accurate and current, this site should be used to locate properties of interest to carry out further investigation as to the viability and suitability of the investment property to your personal situation. Indicative returns on investment are just that ‘indicative’ being based on information provided from third parties in regard to sale price and expected rent to be obtained. They are not deemed to be the final return once all other costs e.g legal fees, stamp duty, rental fees, utilities connections and the like associated with buying a new home are added in. Using links from this site to other web sites and the like means you are accessing information from sites we have no control over, we will not be held liable for any loss incurred from the use of information from this site and outbound linked sites. Management of Empower Housing Group and Empower Housing Group WA April 2014.