Why buying a display home is a shrewd move

Ben Nicholson outside his new house, a former display home.
Ben Nicholson outside his new house, a former display home.

WHEN it comes to purchasing a new home, people often think they have two choices – choose an established home or build.

Like most buyers, 28-year-old first-time buyer Ben Nicholson did not consider purchasing a display house because he thought it would be financially out of reach.

It was only after navigating the property market and extensive research that he found it was an option.

“Initially I was looking at building versus buying an existing home,’’ he said.

“I ventured off to all parts of Perth viewing numerous estates and display homes to find the right location and home design/builder and it was during this process that a number of sales consultants took me to view their finished product homes.”

Mr Nicholson said he had been considering a few display homes before settling on Dale Alcock’s Lotus 1 display home at Heron Park Estate in Harrisdale.

“It is a large 4×2 home with all the bells and whistles included,’’ he said.

“I was attracted to the design/layout of the home, designer kitchen, feature garage door, full render to the home and the column-less corner to the living/dining/alfresco areas.”

Mr Nicholson said an added bonus was the home’s close proximity to the new Stockland Harrisdale Shopping Centre and the Harrisdale Primary and High Schools.

Master Builders Association housing director Jason Robertson said buying a display home removed the stress associated with building.

“The fixtures and fittings are pre-determined (in a spec home), as is the design, with the home being brand new,’’ he said.

“Fixtures and fittings are in almost every case top of the range, and in most cases the display home will be surrounded by other display homes, with the benefit of moving into a home in a desirable location and high quality neighbouring properties.

“Another benefit is financial. A display home can be a good rental investment,’’ he said.

“Often, the builder will rent the property offering higher returns than what might be ordinarily in the market place.”

Mr Robertson warned that while it may seem attractive to embark on becoming an owner builder, there were significant risks that people needed to be aware of.

“Obtaining finance can be problematic, compliance with all legislation from building standards, occupational safety and health through to conditions imposed on the approval from the permit authority,’’ he said.

“Without having industry contacts, project management skills and an understanding of relevant legislation, it’s easy to find an owner builder project run over time and costs. Anyone considering it should seriously weigh up the risks against possible benefits.”

Mr Robertson said having a reputable registered builder undertake the project was a smart move.