The Advantages of Choosing a Display Home for Investment

Investing in property is one of the top ways to boost your income, but it’s not always easy. New investors will have their work cut out in a competitive property market where home buyers and potential tenants are looking for the best value at the cheapest prices.

So what’s the other option? Investing in display homes has grown in popularity recently. Since developers design them to entice potential buyers into purchasing a property, you can usually expect them to build and maintain them to the highest standard and locate them in the nicest part of the complex.

Read on for five more reasons to choose a display home for your next investment property.

Guaranteed Return

When you purchase a property, you hope that someone will soon show interest in buying or renting it from you. But, this isn’t always the case; there’s always the risk of your potential tenants finding something better and pulling out of what may have seemed like a done deal.

The builder or developer will rent back the display homes for sale in Melbourne for a period of around 1-3 years.

Best Design and Landscaping

Property investors are always on the look-out for buildings that have the best layout and design. When it comes to display homes, you can’t really go wrong. Since these houses are used to showcase the rest of the development to potential buyers, they tend to have the most features to display the type of upgrades on offer.

In addition, display homes also tend to show off the type of landscaping available on the site. So, you can have a stunning garden ready to go.

Tax Depreciation Deductions

If you’re hoping to save money on tax when you invest in property, purchasing a high-quality display home could save you a significant amount. Since display home purchases tend to include a lot more – i.e. carpet, ovens, plant and equipment items, air-conditioning and more, tax depreciation deductions are reduced.

In general, you can expect to pay up to $10,000 per year in tax for the first two years of your investment.

Less Renovation Costs

In most cases, when you invest in property, you will also need to pay for work on the building before you can sell it or rent it out to tenants. When you invest in a display home, there’s no need to worry about tenants ruining the place – at least for the first couple of years.

Once you have finished the initial tenancy and you own the home to sell, live in, or rent out, you will need to do less work to get the property up to scratch.

High Yield

Finally, the high yield on a display home investment is yet another attractive feature. Major builders advertise display homes for sale with yields of as high as 8% during the initial rental period.

There’s also a high yield potential for when you find another tenant for your property once the developer’s lease is up. Since display homes are new builds and tend to be in attractive new developments, these types of properties are in high demand.