Thinking of Buying a Display House? Here is why you should

Buying a house is an important milestone in a person’s life. Everyone has a dream house, and most of us spend our entire lives trying to buy one. It amounts to investing almost all of our life’s savings. From finding the right location to the right price, there is a lot that you have to go through when buying a house. Moreover, it is often a stressful time for many people.

When buying a house, you should keep your options open. Restricting yourself to one type of property may not be the best approach. One would never think of buying a display house because it is, after all, a showpiece for customers to get an idea regarding the house. Contrary to this, many people end up buying a display house.

What are display homes?

Display homes are also known as model homes to show potential buyers how a house looks.

There are pros and cons to buying a show house. However, many believe that a display home is perfect for investing.

Who should buy a display home?

There are many advantages to buying a display house. Here are a few reasons why you should consider it:


Consider buying a display house because of its quality, including the fittings and fixtures. Display homes are often kept in the best condition to show customers the best quality house. Often these houses have premium fittings that may not be available in other houses. Since everything is top quality and kept in excellent condition, you should consider buying a display home. Moreover, the place will have finishes to attract more potential buyers for the builder.


In addition to this, display homes are usually located in pristine and the best locations, providing a unique experience to the homeowner.

In addition to this, model homes are present in up-and-coming localities that are well-connected to freeways and other main routes. Hence, they are well-connected to the outside world.


A display home is kept in great condition and offers many amenities. Moreover, the appliances in a display home are new and unused. They are in good condition, and you can use them after you purchase the hose. In addition to this, the front and the backyards in a display home will have landscaping. So you can save the cost on landscaping as well.

Leaseback option

If you buy a display home but haven’t moved into it, the builder can use it for display. The renter fees for the builder are higher as compared with a normal tenant. During this time, the builder leases your property, and you have a renter for a fixed time. Hence, you end up earning some money. On the plus side, you have a renter that maintains the property.

Investment property

During the leasing period, the display home serves as an investment property. With no maintenance costs, it is ideal for investment. Buyers also have the option to move in, sell, or lease the house to someone else. Hence, you can continue earning a side income for a display home. As an investor, buying a display home has tax benefits because it allows you to claim the depreciation on the property.

Why should you NOT buy a display home?

In some instances, it does not make sense to buy a display house. There are a few cons of buying such a house; these are as follows:

Close to the main roads

If you want your house to be away from the main road, then a display house should not be your choice. A display home is usually at the entrance of a suburb. Hence, you may find a display home closer to the main roads. While a display home is built in the most desirable part of the town or suburb, it may not always be situated in your desired location.

Interior design and decor

A display home comes equipped with fittings and fixtures; most home buyers do not get the opportunity to design and decorate it as they wish to. So it may be discouraging for some buyers. However, if you are willing to spend some money on redesigning the interior space yourself, you can get that done. But you will end up spending money.

Is not new

Although a display home has new and premium fittings, it is not new. A display home in a developing suburb may have been in existence for a couple of years. The fittings, fixtures, and appliances may be a little old and out of date.

Also, due to cleaning and visitations, a display home may not be in the best condition as a new home. However, it does not mean that the display home will be in poor condition. But you should consider this before buying a display home and assessing if there is any wear and tear in the house.

Stamp duty

When you buy a display home, you end up paying tax on the land and the house. However, if you were to purchase land only, you would only have to pay tax on it.


A display home is also more expensive than other homes. You end up paying more for the fittings as well as the location. Since the location of a model home is ideal, it factors into the cost of the home. Also, applying for a home loan for a display home is different from applying for a traditional home loan.

Cannot move in

The builder gets the display home on a lease, and the lease period is usually for one to two years. Some leaseback contracts allow the builder to extend the lease period as they deem fit. It means that the buyer cannot move into the property before the lease period ends. So you have to wait before moving into your dream house.


A display home offers many amenities to buyers that may not be available in a new house. Moreover, the location gives a display home another advantage. For investors, a display home is an excellent choice for earning money.

If you are looking for display homes for sale in Australia, go to Hotondo Homes for some excellent deals.

Atif Mallo

Atif Mallo is a freelance blogger with huge interest in technology, science, life hacks and health. He loves coffee, cheesecake and chess. Drop a line in comments to leave feedback for him.

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