Pros and Cons of Buying a Display Home For Sale

Nothing compares to the feeling of visiting a display home and walking through the shiny space with every fixture and feature of the brochure laid out right before your eyes. Envisioning the reality of your dream abode is that much easier when you can experience the layout and spaciousness of your potential purchase in person. Given all this, it’s perhaps not surprising that ex-display homes are highly sought after by homebuyers who fall in love with their model designs and want the instant satisfaction of a pre-built property. As with any purchase, there are pros and cons to balance! To assist you in making the hard task a little easier, we’ve listed the key things you need to know before buying a display home…

buying a display home


1. Premium fittings and fixtures
Renowned for their extremely stylish and superior quality, display homes showcase the best of what builders can offer their customers. The key advantage of this is that these houses are often fully equipped with the best fittings and fixtures, which you might not be able to afford if you opt to build new!

2. Surrounded by other quality homes
If the home is part of a display village, then it’s likely to be surrounded by other ex-display homes finished to an exceptional standard in a beautifully presented street. The luxe ambience of a stunning environment is one of the most attractive benefits of buying a display home.

3. Leaseback rental return
If you’re not planning on moving into your home straight away, then there’s likely to be an opportunity to earn some handy, extra cash. It’s not uncommon for builders to sell their display homes and then rent them back from the landlord while they’re still building within the area. Since the rent will often be at a higher than average rental rate, you stand the chance to make a guaranteed tidy profit!

4. Perfect for investors
While investors can benefit from potential leaseback rental returns, there’s also another significant perk which may sway your decision here. The fact that you can save on property management fees and still claim depreciation on the home is a handy bonus worth considering!


1. Stamp duty
Buying a display home comes with the drawback that you have to pay stamp duty on the total value of both the house and the land. Opting to build new, however, gives you the benefit of paying stamp duty tax on the price of the land only since the house has not yet been built.

2. Limited potential for customisation
Building new comes hand-in-hand with the creative control to personalise your dream home by selecting all your favourite fittings, fixtures and more. Alternatively, purchasing a display home means those decisions have already been made for you and any changes or updates you wish to implement are going to cost extra dollars.

buying a display home

3. Location
While display villages are often in great locations close to major freeways or shopping facilities, this proximity to busy roads and places can also be negative for some buyers. It’s important to keep in mind that building afresh allows you to source and select the location and how close or far it is from necessary amenities.

4. It’s not a brand new home
Let’s not forget that buying a display home means thousands or more people have walked through your abode! Although these properties are meticulously cleaned, it’s inevitable that they will accumulate some wear and tear. Also worth noting: if the display home is several years old, the warranty period on the some of the appliances may have expired!

The iBuildNew team can help organise your priorities and get you on the right track to creating the perfect home for you. Give one of our experts a call on 1800 184 284 or book a call today.

Kaylah Chesson

Kaylah is completing her final year of a Bachelor of Arts / Bachelor of Laws degree at Deakin University. Her particular areas of interest include property and land law, home design and the creative arts.


iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

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