Blog post

5 Reasons to Invest in a Display Home

8 February 2016

Guaranteed returns of 8 per cent and impeccable tenants are just two good reasons to invest in a Plunkett display home with a leaseback arrangement, says Plunkett Sales Manager Jeremy Muir.

“Add in the fact that all cleaning and maintenance is included, there’s no need for a property manager and there’s enormous appeal to prospective purchasers or tenants at the end of the leaseback period, and it’s an option that’s well worth considering,” he says.

“At the moment, buying a display home and leasing it back to the builder is probably one of the highest-yielding investments you can get. At returns of 8 per cent, it’s an investment that can offer twice the returns of many other investment properties in the current market.”

 

Plunkett currently has display homes for sale in AveleyWoodvaleAustralind, JindaleeRivieraMillbridge and Milpara. Prices start at $590,000, with guaranteed returns of 8 per cent and renewal options for another two to three years after the initial 12-month leaseback, depending on the location and the age of the display village.

Jeremy says investors like the confidence that comes with having the builder as their ‘tenant’, knowing that their investment property will not only be well looked after, but it will also be spotless when it’s vacated.

“At the end of the leaseback, any maintenance items are looked after and we make sure the house is handed over in perfect working order,” he says.

“Dealing directly with the builder not only eliminates the fees investors typically pay to a property manager, but it can also make for easier communication.”
Jeremy Muir

Display homes are usually built in display villages created by developers in new housing estates across Perth, as well as in areas such as the South West. This means they are surrounded by other quality homes, giving investors additional peace of mind.

Although obtaining finance to buy a display home as an investment can sometimes be harder than finding a loan for a traditional property purchase, the leaseback arrangement with the builder provides a level of surety that investors welcome.

“At the end of the leaseback period, many of the people who have purchased a Plunkett display home quickly find tenants for it, while others decide to sell,” Jeremy says.

“For many others, the leaseback arrangement has given them short-term investment returns on a stunning new property that they love and can’t wait to move into themselves.”

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