What can you expect?
A turnkey property is ready for living so it will have the fencing in place and the garden will be landscaped. Inside the property, you’ll find floor coverings, blinds or curtains for the window, the walls will be painted and there will be light fittings. If you’re moving into a property for yourself, you’ll probably want to decorate it to your tastes, but when you’re buying a property as a rental machine, having all the finishing touches complete saves time and effort.
What else can you expect?
In addition to readying the property, the loans for the development are in one package and the development firm will make it even more convenient by contracting out the building work, the wiring, the plumbing, the interior design and anything else needed to complete the development. If there are any problems with anything in the property when it gets moved into, a defects period should be in place within the contract that makes sure that specialists come back to the property to fix any minor issues typically at no cost to you. This is normally for a 3 months period after practical completion has occurred which should give you and the bank manager enough peace of mind that the property will be habitable from day one.
Benefits of buying
When you’re buying a house to rent out, a turnkey property is perfect because your tenants can move in the moment you take ownership of the property. Saving time, saves you money and allows you to make guarantees to estate agents. You can also make guarantees to lenders, so this sort of investment is great when you need a loan from the bank. Banks will be pleased to lend you the money because they’ll recognise that the property is ready to make money.
Investing in this sort of property often leads to streamlined paperwork as an estate agent who specialises in turnkey investments know the minute details of the whole package, which makes for a very simple process.
Increasing your property’s equity and your personal wealth is a goal that most investors share, and with a turnkey investment you can start that process far quicker than you can with any other type of property. As developers build in volume, they get discounts on materials, and as they put regular work through to specialists like electricians and plumbers, they pay lower fees for labour. Some of these savings are passed onto the buyer, so you probably won’t have to wait long before your property starts to appreciate in value.
Erin Warbrook is a freelance writer, and as such, has no time to devote to building houses from scratch! She spoke to the development geniuses at Impressions Homes about how to build for investment, wisely.