The complete guide to Buying a Display Home - ABM Homes

The complete guide to Buying a Display Home – ABM Homes

Table of Contents


Display Homes are the best way for prospective home buyers to choose the kind of home they want to build. Display Homes are also called show homes.

In a nutshell, builders construct a “demo house”, which is designed and constructed with a theme in mind. 

The factors that impact the theme include different architectural styles, as well as different construction methods. 

That means different Display Homes essentially have different personalities. While one Display Home features minimalist style and wooden framing, another can feature classic vibes and steel framing in the construction.

It depends on the approach of the builder.

aerial view of surroundings at whitlam village

Can someone buy a Display Home?

Yes, you can purchase a Display Home. There are several benefits to buying one. We have discussed these benefits later in this piece.


How do I buy a Display Home?

Display Homes are purchased under a leaseback arrangement. You, the buyer, pays the builder for the rights to the property.

After that, you “rent” back the property back to the builder for a fixed time. The builder can then continue showing the Display Homes to other potential buyers. 

After the tenure is finished, you can then decide to move in, sell it off or put it up for rent.

The length of the leaseback depends on whatever you and the builder decide.


What is included if you buy a Display Home?

What is included when buying a display Home - ABM Homes

Most of the fixtures, fittings and other furnishings are included with the Display Homes. 

Some accessories such as electronics, mirrors or furniture may or may not be included. 

This depends on the contract between the buyer and the builder.

Advantages of buying a Display Home

Location of a beautiful display home by ABM homes

Most Display Homes are sold by builders within the first six months, as buying a Display Home has several benefits:

  • In build quality, Display Homes are second to none. Builders use high-end furnishings and best-quality materials. 
  • They are generally more affordable compared to building a new one. Builders are generally willing to offer discounts to buyers so that they can get started on their future projects. 
  • Moving in is much faster. As show homes are readymade, all you need to do is choose which one you want, complete the purchase and move in.
  • In terms of style, a Display Home is the result of many experts combining their creative forces.
  • It is an excellent real estate investment. Buying one can provide an instant cash flow. They are mostly present in upcoming areas, which means there is great potential for property appreciation. 
  • Show homes are generally situated in Display Home Villages, next to other Display Homes by the other builders. That makes your new neighborhood an amazing place with stunning homes!
  • Since builders manage the property in a leaseback agreement, you don’t have to pay any property management fees. However, you can still claim depreciation in the house. This means your savings are further extended.

Potential Drawbacks of buying a Display Home

  • There is some wear and tear as the house is visited by potential homebuyers. However, builders make sure the properties are maintained meticulously. So any actual damage is generally very minor.
  • You cannot choose where it is located. This is a drawback if you would prefer another location. However, it’s important to note that Display Homes are generally located close to most modern amenities and facilities. 
  • You may not be able to make a lot of changes to the house, as you’ll have to spend more money for alterations and additions.. 
  • When buying a Display Home, you will have to stamp duty on both the house and land. If you are building a new home, you only have to pay stamp duty on the price of the land. It is important to keep in mind here that Display Homes offer very high value for money. 
  • As banks approach financing Display Homes in a conservative manner, you’ll have to pay 20% as down payment alone. They also need to verify if you have healthy equity, as loans for Display Homes are considered to be commercial and not like your average mortgage.

Display Homes by ABM Homes

The arise display home with green surroundings at whitlam village

As a builder in ACT, we have built and sold multiple Display Homes across Canberra.

Our latest project: The Arise is on show in the up-and-coming Whitlam Display Village. 

If you are interested in buying a Display Home, you can contact our team by calling on 0420 360 211.

Leave a Comment

Your email address will not be published. Required fields are marked *