Buying a show home can be a smart real estate investment – here’s how.
From time to time, you may come across a show home (also known as a model home) for sale. These rare real estate listings are usually smart real estate investments, so they are worth considering. But what makes them so special? When comparing a model home with a regular home listing, there are key differences that elevate this purchase to a new level.
Model homes are carefully designed
Show homes typically include premium upgrades and unique features that set them apart from regular homes in the development. These enhancements can attract potential buyers looking for something special and willing to pay a premium for those extra features.
These upgrades can include premium appliances, luxurious finishes, upgraded flooring, custom cabinetry, and high-quality fixtures. By purchasing a show home, buyers can enjoy these enhancements without having to invest in costly renovations or upgrades themselves. They may also promote higher resale values compared to standard homes in the same neighbourhood.
In short, all the work is done for you by a designer so you can feel confident that the home is on trend and needs no further improvements.
These are often in limited supply since they serve as showcases for the builder’s work. This scarcity can create a sense of exclusivity and desirability among buyers. As a result, show homes may have higher demand when reselling, potentially leading to faster sales and higher selling prices.
Location, location, location
New or upcoming developments are usually where you will find model homes, which can experience significant appreciation in property value over time. As the neighbourhood grows and amenities improve, the demand for homes in the area can increase, leading to higher property values. By purchasing a show home early on, buyers can benefit from potential appreciation and capitalize on the rising market values.
These new or upcoming developments are often found in quieter areas, which provides a good amount of privacy, too.
Use it as a rental
These homes can be attractive as investment properties due to their upgraded features, desirable location, and professional staging. Investors can consider renting out the showhome after purchasing it, which can generate a higher rental income compared to regular homes in the area. The aesthetic appeal and high-end finishes can also attract tenants willing to pay premium rent.
Investors don’t need to worry about upgrading old appliances or putting a fresh coat of paint on the walls because everything is already done for them. As far as rentals go, it doesn’t get much easier than this.
They are model homes for a reason
Show homes are built by reputable developers who invest in creating high-quality properties. Buying a show home from a well-known builder can add credibility and reassurance to the investment. Developers with a good track record are more likely to create desirable communities, maintain high construction standards, and offer reliable customer service, which can positively impact property values in the long run.
Show home furniture is carefully selected to promote the best aspects of each space and work harmoniously with the rest of the house. Often you can purchase the home with the furniture, making it a fuss-free purchase.
Save on the warranties
Model homes often come with extended warranties on appliances, systems, and structural components. These warranties can provide buyers with additional peace of mind and potentially save money on future repairs or maintenance costs. The transferability of these warranties can also be an attractive selling point when reselling the showhome.
Interested in purchasing a show home?
Are you now curious to see if purchasing a show home is the right fit for you? Another great thing about these homes is they are perfect examples of how designs work together, which can be inspiring for building your own custom home. If you are interested in having a tour of a high-quality show home or want to learn more about the steps for building your own custom home, the team at Ballard Fine Homes would love to hear from you.
Ballard Fine Homes is a Vancouver Island custom home-building company. Our Parksville location contains a showroom where clients can browse through and look at our high-end finishes, floor models, and example layouts for ideas for their own homes. We make the process of building a custom home enjoyable while providing outstanding customer service. Read what our happy clients have to say about us, and give us a call for any questions you may have.