The Pros and Cons of Buying a Display Home


If you’re ready to enter the property market or looking for an investment, it’s worth considering buying a display home instead of building brand new. We’ve broken down the pros and cons of choosing a display home for both first home buyers and investors alike.

What is a display home?

A display home is just like a regular home, except it’s built to demonstrate the design concepts and building expertise of your selected home builder. This means you’re more likely to see the upgrades and optional extras included that usually cost a little bit more.

The Pros.

An affordable option

Display homes are an affordable option for a couple of reasons:

  1. Discounted market value:
    you’re more likely to pay less than you would for the same home built brand new, as builders are keen to sell the property and reinvest in other projects.
  2. Additional features and upgrades:
    your home may have upgraded features that would otherwise cost you a little bit more in a brand new build but are included in a display home.
  3. Landscaping is included:
    When you build brand new, you’ll be required to pay for the landscaping of your new home within a set timeframe and to specific standards. But with a display home, you’ll save anywhere from $20,000 to $30,000 on landscaping costs.
  4. Leaseback options:
    you could actually be making money on your property with a builder leaseback arrangement. Find out more below.
Kitchen Stirling Display

Great for investors

The great thing about purchasing a display home is a leaseback option with the builder. In an effort to free up cash flow and reinvest in new projects, many builders will sell display homes to investors and rent them back for a set period at an attractive return—in some cases up to 7% p.a.

Imagine purchasing an investment property where the tenants are only home for small windows throughout the day, have the property professionally cleaned each week, and ensure regular high standards of garden and home maintenance—all with an attractive return!

The Cons.

Wear and tear

Display homes welcome a number of guests over the years to explore the design and quality before signing off on their brand new home. This means that some homes can have a bit of wear and tear, although keep in mind that it will be minimal compared to a home that has been fully lived in over the years. It’s also worth noting that display homes are professionally cleaned once or twice a week and kept in tip-top condition by builders looking to put their best foot forward with potential customers.

Location, location, location

When you buy a land and house package, you get to choose exactly where you’d like to live. With a display home, you’re likely to be on a beautiful strip next to other display homes, which you may end up living next to an empty home until the builder has moved on. But hey, at least the neighbours will be quiet!

No option to customise the property

When you build a brand new from a house and land package, you have the option to customise the style and structure of your home—like including a MyRoom, adding an extra bathroom or choosing the flooring to suit your tastes.

MyRoom Alfresco Living

Interested in buy one of our displays?

If you’re interested in buying a display home, come in and see one of our new home consultants, to discover the display homes currently for sale. They’ll give you a good idea of what to expect if you’d like to build brand new, or you may just find your next home or investment.