The Real Estate Industry In Australia And Owning Display Homes In Perth

Over the last few years, real estate agents have been very busy. The boom of the real estate industry has caused investments to appear everywhere. The residential property sector has excelled significantly in the last five years. The Australian real estate market remains to be strong despite facing economic challenges and turbulences. Display homes in Perth continue its streak of success despite the increase in housing prices. But as the prices stabilize, display homes in Perth, commercial lots and residential homes have continued to haul a great share in the Australian market revenue.

The overall industry revenue is projected to increase annually at the rate of 1.2% in the years 2014-2015, reaching approximately a target of about $10.7 billion.

The typical scenario these days is that people go to mining towns in order to profit 8 percent return on houses. However, there has been a radical change in Australia as investors can now buy high quality houses in major cities and earn the same yield in mining towns.

The average return for capital cities is only about 4 percent. However, investors can now double that earning by buying display homes and then leasing them back to the home builders.

The house and commercial builders often sell their shop front houses to investors at a rate that is at par with market value. But the payment is above market rent which makes the buyer gain returns that are at the range of 7 to 8 percent.

The builders do not want the money they used in building the houses to be tied up for a long time with the display houses. After completing the structure, the builder will then offer it to possible buyers and investors at very attractive terms. This way, they will be able to earn back their capital so they can proceed in other projects.

For the investor’s view point, owning a display home has several advantages which are as follows:

• The house usually has the best quality because it is designed as a showcase house to attract the buyers to purchase.
• The house will surely be maintained and kept in very good condition because it is the shop front of the builder.