Buying a Display Home

Builders often look to sell new ‘Display Homes’ and then rent them back for a couple of years, , , , so should you buy one?

Here are a few things to consider.

Why Do They Sell

Being a builder needs a lot of cash flow.

Owning a house and land uses a lot of cash which increases the borrowings that the builder needs to make to operate their business.

By selling the display home the builder releases the cash and makes the running of the business easier.

The builder can also claim the cost of rent as a business expense.

Advantages

  • You can see exactly what you are getting.
  • You are likely to be getting top of the line appliances and fittings.
  • The quality of construction is likely to be better (I know of tradies who often work on display homes but don’t get other work because they are too expensive)
  • You get a guaranteed rental income for a couple of years.
  • The house will come with extensive landscaping.
  • One area that is forgotten in many display homes is adequate power socket provision.
  • Usually include a security system.

Disadvantages

  • The floor covering will have taken a beating.
  • Heating and cooling will have been well used. (having visited many display homes I find that patio doors are open all year round and the heating/cooling systems are running at full power to compensate)
  • You are likely to be buying one of the most expensive houses on the development, which may make it harder to realise the investment when you sell.
  • The house is likely to lack privacy (Large open plan layouts make the house appear spacious but mean that having your own quiet space becomes difficult)

Other Considerations

  • Many display homes will front a main road making it noisy.
  • Think about how the property will look when fences are in place. Builders usually don’t initially erect fences as this makes the gardens appear larger.
  • Check what the sales contract requires the builder to do following the end of the lease. (erect side fencing. remove front fencing, restore garage area, etc)

I’m not saying don’t buy a display home, I know people who have done so and been well satisfied, just consider all the implications,

 

E-bay Flat pack Furniture

Recently my wife ‘volunteered’ me to assemble a flat pack desk that a friend had bought on E-Bay.

The friend had given up after a couple of hours.

“Don’t worry,” my wife said, “It will only take Brian around half an hour as he has assembled lots of flat pack furniture.”

Well after around half an hour looking at the partially assembled desk and the very unhelpful instructions I had to take the whole thing apart.

Next there was about 90 minutes of concentrated effort punctuated with short bursts of profanity each time I realised I had made a mistake.

Finally the finished desk emerged.

What I now know

  • Never buy Flat pack furniture from E bay. I will be sticking with Ikea in future.
  • Next time it’s suggested I help with a friends furniture assembly I am going to suffer from a sprained wrist until the whole thing is forgotton.

7 Common Mistakes to Avoid When Remodelling Your Kitchen

Guest post from Hubert Dwight

So you’re thinking about renovating your current kitchen.

Maybe it’s for lifestyle reasons, or maybe it’s because your old kitchen is slightly falling apart.

Whatever the reason for remodelling, a new kitchen is an investment that will bring you happiness from years to come.

Remodelling the social hub of your home is a big decision to make, and there are a few key mistakes that you can avoid to ensure your renovation process is as effective and efficient as it can be.

1. Not having fun

When remodelling your kitchen, it’s important to make sure you have fun with it.

Use pops of colour, a focal point and pieces of art.

Little details like these are what will make your kitchen feel like home.

Stick to classic styles, but don’t stick to boring rules.

As well as this, remember that this should be a fun process!

Although it will absolutely take some elbow grease, it will also be a truly satisfying undertaking that you should revel in.

2. Skimping on cabinet storage

Don’t self sabotage your kitchen by not giving yourself enough space.

It can seem like a good idea to skimp on storage to keep costs down.

However, these days, there is a plethora of storage solutions that can really help maximise your kitchen.

Pantries and super cabinets are great options that will optimise any sized kitchen.

3. Choosing appliances last

When doing a full renovation of your kitchen, make sure you choose your appliances first.

It’s much more logical, and easier, to choose things like cabinets and countertops once you’ve already decided on your refrigerator and dishwasher.

Nowadays it is definitely viable to select a range of appliances that are in the same colour or design to give your kitchen a central theme.

4. Not thinking about it as an investment

A total kitchen makeover will come at an expense – and sometimes it can be hard to keep that cost down.

Therefore, it’s crucial that you think about your lifestyle and your cooking preferences, so you can plan your kitchen accordingly.

After all, remodelling your kitchen is an investment and will improve your life!

5. Forgetting your budget

As with any financially-based endeavour, your budget should be your gospel.

Coming up with a realistic budget for your renovation is essential.

Decide what features of your kitchen are the most important, and allocate your finances accordingly.

Keep a copy on you at all times, so you don’t make any rash decisions and regret it later!

6. Going it alone

Even if you are experienced in the art of DIY, it’s vital that you consult a kitchen design expert before undertaking a job such as a full renovation.

An experienced professional, such as the staff at ESI Lifestyle, will be able to offer tips, tricks and general advice regarding your kitchen hopes and dreams.

7. Forgetting your workflow

How do you prefer to cook?

Do you use the stovetop more, or perhaps the oven?

Remember your kitchen’s busiest areas will usually be the sink, the stove and the refrigerator.

Make sure these areas are spaced far enough away from each other so as not to overcrowd any one particular area.

Don’t over think the remodelling of your kitchen.

With planning, a good budget, and appropriate ideas of how you want your kitchen to match your lifestyle, you’re already halfway there.

 

Keep in mind these 7 common mistakes when you’re remodelling your kitchen to avoid further complications down the track.

Bat Cave Bedroom

Have you got a secret Batman fantasy?

Perhaps this is the bedroom decor for you?

This is a photograph of a Japanese ‘Love Hotel’ Room from www.slightlywarped.com

Love Hotels are fairly common in Japan and rooms can be rented overnight, or even for a couple of hours!

I wonder if the guests hire costumes as well!

We are off to Japan later this year so I may have to do some ‘Research’.

 

For more Fails and unusual houses go to What the………….?

 

Owner Builder Videos

If you are planning to be an Owner Build I recommend that you spend a couple of hours watching the ‘Build My Own Home’ Video series by Bill Pearson.

https://www.youtube.com/watch?v=rJPmM0T789M&list=PLh5B6MCXRHiHlpIpo4vXngKyiysQMmvgK

I had a bit of a Q&A with Bill as follows:

Bill is 67 years old and doesn’t have any building trade qualifications, although he has had plenty of hands on experience of renovating since his teenage years,

The site is a 2,2 hectare block about an hours drive from Newcastle, NSW

Timescale

  1. Bought block and started planning in February 2013
  2. Upper storey floorplan selected (Kitome), heavily modified, Lower storey self designed, engineered & drawn up April 2013.
  3. Development Approval July 2013
  4. Earthworks commenced August 2013
  5. Shed slab poured & shed self erection begun September 2013
  6. House slab poured October 2013
  7. Shed finished & power connected to site November 2013
  8. On site waste system installed & commissioned December 2013
  9. Move caravan from park & live on site –Christmas Eve 2013
  10. House lock up – January 2016
  11. Projected finish / occupation certificate – June 2016

Having talked to many Owner Builders this timescale wouldn’t be unusual – Brian

Cost

  • Kit home $77k
  • Lower storey & sewage, $68k
  • Current expected cost at occupancy without land $210k (land $120k)

Expected valuation $425k

Challenges

  • Finding good tradies willing to  come away from population centres, waiting months for their quotes, then waiting months for them to come to do the work. Many local tradies were either crap, quoted three times what they should, or both.
  • Looking at the big picture. Too terrifying most of the  time. You just have to focus on one job at a time, one week at a time.

Positives

  • Maintaining personal motivation & energy – although the closer to the end – the more tired.
  • Satisfaction of looking back at what has been accomplished as each job/stage was finished

For the full list of Videos check out this link: Build My Own House

Turtle House

Photo from imgfave.com

Not really a house, but I couldn’t resist including it.

Actually it is a restaurant and bar of the Bayanzag Tourist Camp in Mongolia.

It should really be in Australia home to ‘The Big Ram. Big Koala, Big Prawn. Big Banana, etc, etc’!

 

For more Fails and unusual houses go to What the………….?

 

 

What Is The Focal Point?

What is the ‘Focal Point’ of your new living room going to be?

This is something to think about when you are planning your new house as it will involve the layout and furniture of the room.

Generally there are three options.

The Fireplace

When i was young . . . in the 1950’s, (In the UK) this was the traditional focal point to a room.

Now with central heating the fireplace, in many home,s has lost its importance.

Many homes no longer have a fireplace as standard, but it can be an expensive ‘upgrade’.

The View

A window can be a great focal point with a few qualifications;

  • The view needs to be pleasant . . . not a view of a colourbnd fence 1m from the window.
  • The view need to be visible when you are sitting down.
  • What happens at night when it’s dark and/or the curtains are shut?

The Television

As television screens have increased in size over the years the TV has become a more important focal point.

In many rooms I see the television is not only a focal point, but dominates the room.

How Many Focal Points?

I think rooms can work well with two focal points.

In our current living room our focal points are a great view and the TV. These are on adjacent walls with both in direct line of site from our normal sitting position.

I have seen several rooms such as the photo rooms where the TV is mounted above the fireplace to get three points, although I’m not so sure about the idea as I think the heat can affect the TV.

I also prefer the TV to be at eye level rather than looking up at it.

Photo from godfatherstyle.com

Why LEDs Are A Great Investment When Building Your New Home.

Guest Post by Hubert Dwight

One of the most important elements when building your dream home is lighting design.

There are several enchanting lighting options that you can opt for, however the wrong choice of lighting may lead to extortionate maintenance costs over the long-term for the homeowner.

One way around this is to install energy efficient light bulbs that will reduce the energy consumption for the homeowner.

LEDified, who specialise in residential and commercial LED Lights explain the benefits of installing these types of energy efficient lightbulbs.

Why should you consider installing LEDs?

LED light bulbs use up to 80% less energy than traditional incandescent light bulbs and can produce the same amount of light.

They can also be used intelligently with dimmers, sensors and software that will adjust the light to external conditions and space.

For people that are building new homes, the initial supply cost of LED lights will be higher than incandescent solutions, however the long-term savings can easily outweigh the initial installation costs.

Saving the home owner money.

According to discussions on Whirlpool Forums, the average annual energy bill costs the Australian household $1000-2000 a year. (The figure varies depending on the household’s size and electricity consumption requirements.)

The initial cost of LED based systems will be offset by lower costs and maintenance of the lighting system over the long-term.

According to LEDified’ the maintenance cost can save home owners hundreds or even thousands of dollars per year.

LED lights have a longer lifespan.

One of the great things about LED lights is that they don’t need to be replaced as often as often as incandescent bulbs.

The lifetime of an LED lightbulb can be up to 60,000 hours compared to 1500hours of incandescent bulbs.

For example:

  • 50,000h used for 24h a day will give a 6-year lifespan.
  • 50,000h used for 8 hours a day will provide a lifespan of 17 years.

More information on LED lighting solutions can be seen in the video below.

They can be installed for creative lighting designs.

Because LEDs are small and directional, they can be used in several ways for the home’s lighting design.

For example, they can be used to illuminate flooring and cabinets and individual paintings.

Down lights can be installed to completely illuminate a room.

They will help reduce the home’s impact on the environment.

We are living in an era where people are aware about eco-friendliness and sustainability.

People are willing to invest in eco-friendly solutions for their home.

Builders and developers can make this process easier by providing an ‘off-the-shelf’ sustainable homes with LED lighting solutions.

This can be pitched as a USP for the property and may even earn a premium price for the property developer.

They improve the safety of the household.

Incandescent bulbs generate a lot of heat in order to emit light.

This results in fire risks and burns to people that touch the bulbs.

LED lights don’t produce heat in the form of infrared radiation.

This allows LED fixtures to be positioned in most locations around the home, including positioning near food and textiles.

LED lights are a great investment option for homeowners.

Builders and developers can do future homeowners a favour by installing LED lights into properties.

Not only will they benefit from reduced electricity bills over the long-term, but builders and developers will be playing their part in selling sustainable homes that will help reduce the carbon footprint on the environment.

Take action today and start taking advantage of the benefits that LEDs have to offer.

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