Have you thought about buying an investment property with all the bells and whistles, offering a guaranteed rental return of between 7% to 8% for up to four years. What if this also came with perfect tenants who keep the place spotless (both inside and outside), having the home professionally cleaned a couple of times a week?
Yes, we are talking about the rare investment opportunities in the market – Display Homes.
Advantages on investing in Display Homes
- Guaranteed leased back by Builder which are usually to four years
- High rental yield while the investment property is a display home because the builder pays rent at a commercial rate which is usually 7 -8%
- Even though the rent is paid at a commercial rate, the investment property is treated as a residential building for tax purposes;
- The house is often at the highest quality as the builder is keen to showcase their best work;
- Depreciation can still be claimed;
- High short-term returns during the lease back period could generate sufficient income to fund a deposit on the next addition to your investment portfolio;
- High specification and quality landscaping will be included by the Builders as part of your investment property.
- Builders are great tenants and often have the property professionally cleaned a few times a month, therefore when the property is handed back to you after the lease, it would appear almost brand new;
- If the home is part of a display village, your investment will be surrounded by quality homes on an attractive street;
- No need to pay for property management fees at all as there is no property manager involved, you will get 100% of the rent you deserve;
- The investment property would very likely to attract high quality tenants and a premium rent in the market later on even after the lease back due to high specification
- Last but not least, at the end of the lease back period, the land value will also have increased significantly (If you can do your research, it’s very obvious to find out!)