If you’ve ever strolled through a new housing development, chances are you’ve stepped inside a display home, also called a model home or show home. Perfectly styled, immaculately clean, and full of premium upgrades, display homes often feel like a dream come true. But here’s a question that many homebuyers ask:
Can you actually buy a display home?
The short answer is: Yes, you can. But like any real estate decision, it comes with its pros, cons, and unique considerations. In this article, we’ll explore the ins and outs of buying a display home, how the process works, the advantages and drawbacks, and what to look out for before signing the dotted line.
What Is a Display Home?
A display home is a fully constructed and furnished property that home builders use to showcase the design, quality, and features of their offerings in a new estate or housing development. These homes act as a tangible advertisement, allowing prospective buyers to experience what living in a certain type of home could feel like.
Typically located in “display villages” (clusters of model homes by different builders), these homes feature top-of-the-line upgrades, landscaping, custom finishes, and interior design, essentially making them the best version of what the builder offers.
But once the development is nearly sold out or the builder is ready to move on, these homes often go up for sale.
Why Do Builders Sell Display Homes?
Home builders don’t intend to hold onto these properties forever. Once a community is well-established and the marketing value of the display home has been exhausted, it becomes more cost-effective for builders to sell it and recoup some of their investment.
In fact, builders often list these properties with leaseback arrangements, meaning they sell the home to an investor or buyer, then rent it back for a period while continuing to use it as a display.
How Can You Buy a Display Home?
1. Look for Listings from Builders
Builders usually advertise display homes on their websites, through real estate agents, or in local property listings. Some even promote them as high-yield investment opportunities.
2. Understand Leaseback Arrangements
In many cases, display homes are sold with a guaranteed rental income via a leaseback deal. You, the buyer, become the landlord, and the builder pays rent (often above market rate) to continue using the home as a display for a set period (e.g., 12–36 months).
3. Engage a Conveyancer or Property Lawyer
Buying a display home involves complex contracts and specific clauses, especially with leaseback conditions. It’s important to have legal advice and someone to review all documents carefully.
Pros of Buying a Display Home
✅ 1. High-End Inclusions and Upgrades
Display homes are showpieces. They usually include premium features like:
- Stone benchtops
- Designer lighting
- Built-in cabinetry
- High ceilings
- Advanced home tech
- Professional landscaping
All these extras would cost significantly more if you were building from scratch but in a display home, they’re already included.
✅ 2. Immediate Rental Income (with Leaseback)
If you’re an investor, the leaseback arrangement provides instant cash flow, often with higher-than-market rental yields. Plus, the builder typically covers maintenance during the lease, making it a hassle-free investment.
✅ 3. Professionally Maintained
Because builders want to impress buyers, display homes are meticulously maintained. You’ll likely find a property that looks brand new, even if it’s a few years old.
✅ 4. Low Vacancy Risk
If the leaseback is in place, there’s no vacancy period to worry about initially. And once the lease ends, the home is usually in a sought-after area, new estates with parks, schools, and amenities.
Cons of Buying a Display Home
❌ 1. It’s Been “Lived In”- But Not in the Traditional Sense
While no one has “lived” in the home, hundreds (if not thousands) of people may have walked through it. Doors, flooring, appliances, and fixtures may have seen wear and tear.
❌ 2. Delayed Move-In (if Leaseback Applies)
If you’re buying the display home as your future residence, you may not be able to move in immediately due to the builder’s leaseback period. For investors, this isn’t a problem but it can be a dealbreaker for owner-occupiers.
❌ 3. No Customisation
What you see is what you get. Unlike a new build where you choose floorplans and finishes, a display home is sold as-is. That said, it usually already comes loaded with desirable upgrades.
❌ 4. Location Within the Estate
Display homes are often located at the entrance of an estate or on a main road to attract attention. That visibility can be a downside for some homeowners due to traffic or lack of privacy.
Things to Consider Before Buying a Display Home
- Lease Terms: How long is the leaseback period? What’s the monthly rent? Who covers maintenance, rates, and insurance during the lease?
- Builder Reputation: Research the builder’s track record. A reliable builder is more likely to honor leaseback terms and maintain the home properly.
- Future Market Value: Consider resale potential. Will buyers be put off by the fact it was a display home? In many cases, the premium inclusions help maintain strong value.
- Structural Warranty: Even though it’s not a new build, you should still receive the builder’s warranty. Confirm what’s included and how long it lasts.
- Fixtures & Furniture: Ask what’s included in the sale. Some display homes are sold fully furnished; others are sold empty. Clarify this before making an offer.
Is a Display Home a Good Investment?
For investors, buying a display home can be a smart move:
- You get a turnkey property with no upfront maintenance.
- The builder pays rent and looks after the home during the lease.
- Once the lease ends, you can rent it out again or sell at a profit, especially if the area has grown in popularity.
For owner-occupiers, it depends on your timeline. If you’re okay with waiting to move in and want a high-spec home without building yourself, it’s a great option. Just be cautious of location and existing wear.
Final Thoughts
So, can you buy a display home? Yes, and it might be one of the smartest (or most stylish) real estate moves you can make.
Whether you’re an investor seeking reliable returns or a homebuyer looking for a move-in-ready masterpiece, display homes offer a unique opportunity. Just be sure to go in with eyes wide open: understand the lease terms, inspect the home thoroughly, and get expert legal and financial advice.
Because while it might look like a dream home, it still needs to be a smart buy.
