For those unfamiliar with the term, turnkey pertains to homes you could move in as soon as all legalities and paper works are done. It’s called as such because the new owners could just “turn the key” to open the main door and move in.
If you are planning to purchase a new home and considering a turnkey property, you have to remember that most of these properties are not brand new, instead they are renovated before being put up for sale. If this is something that you are fine with instead of a brand-new home, turnkey properties would be right your alley since they are good for those wanting to become home owners or investors who don’t have the time or the skill to custom build a home.
Before you do decide, know first the advantages and disadvantages of a turnkey property.
For those who are excited to have a place they could call their own, turnkey houses is the answer. They are move-in ready and you would not have to waste your money renting a property that is not your own. At least with a turnkey house you are getting your money’s worth the moment you paid for it.
A Good Source of Passive Income
If you are looking for turnkey homes but not as your residential property instead as a source of passive income. These kinds of properties are a great opportunity for you to get back your investment. Without having to do that much, you have a steady stream of extra income. It would also help you diversify your portfolio by having various investment properties.
When you purchase turnkey properties, you have avoided a huge landmine that includes mountain of paperwork, appraisals, inspections, adhering to building guidelines and renovation process. There are companies as well that is involved in this sector that would even help you look for tenants if you would be subletting the property.
Real Estate Is Risky
Real estate is a risky business. Sure, the money is good when the market is good. But since it is volatile, there is always the possibility of you not having your investments doubled or even returned. You also have to consider natural calamities that could destroy your property.
Design and Layout of Turnkey Properties Are Final
These properties are not as flexible when it comes to design and layout because they are the final product. Their look is how it is from when you first see it. You could not incorporate your style and taste unlike with a custom built.
It Might Be More Expensive
Depending on the severity of renovation, the price of a turnkey house might be costlier since the cost for the renovation would be added in the price of the property.
For all investors, turnkey properties are a good option because it is readily available, it is a good source of passive income and less stress and hassle in dealing with it. Of course, it would not hurt to do your research or to ask the opinion of a professional.