Saturday, June 25, 2011

Would you buy an actual display home?

So, while browsing around, came across a Metricon display house for sale in Point Cook.

Asking 625-650k, on 512sqm, with immediate possession available.

Let's say you wanted to buy a new car, but was told it could be a 6-12 month wait. Not uncommon - the current Golf GTi apparently has a waiting list this long! But... you could grab an "executive driven demonstrator" model immediately, with a few thousand bucks off. In my eyes, certainly a good dealm as you avoid a long wait plus manage to avoid some of the immediate huge depreciation when buying a new car. I bought a new car, once upon a time... never again!

Anyway, this case is slightly different when buying a house. Let's think about some of the aspects of buying a ex-display home vs building from scratch.

  • Stamp duty will be considerable more on a completed house, compared to a vacant block of land.
  • The house is built - you can inspect it, walk around it, and move into it straight after settlement.... instead of waiting for land to be titled (and we've all heard horror stories about land titling 6-12 months later than it was meant to!)
  • It should come fully landscaped, with floor coverings, window coverings etc. A huge difference to when we moved in - with bare concrete floors, bare yellowtongue flooring upstairs, mud and crap everywhere and no driveway!
  • If you purchase an ex-display home while it's still functioning as a display home, often the vendor will give a decent return (7-8% not uncommon) while the house is being used.
  • All fittings and colours will be as displayed - if you don't like it, bad luck. Up to you to repaint or replace fittings after settlement. Display homes usually have had a lot of thought put into their interior design, and to be honest Metricon have some of the best display home interiors that we've checked out. Hopefully matches up with your own tastes.
  • Being a display house, there would've been some amount of wear and tear of the property due to stickybeaks opening, shutting and banging around everything possible. Buyer beware!
  • Usually display houses are optioned up hundreds of thousands of dollars more than the basic home - whether or not they're to your taste, and the price premium put on the sale price of the property is up to you to calculate.
  • The location of display homes is typically in the higher-traffic area of the development, simply because display home builders want more passing traffic to check them out. Could be in a noisier location than other homes - assess carefully.
Anyway, if you wanted to check out this particular Fairhaven for sale, click here.

Or here's another display home for sale, but from Porter Davis on the East side of town, asking $520-550k.


1 comment:

  1. Great that you still update your blog after your build is complete! Keep us up to date with how you're furnishing your place if you will.

    We're just about lockup stage with M in the SE suburbs... if you've got any tips of the trade please do let us know!



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