Real Estate

What Is a Turnkey Property and Is It a Wise Investment?

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If you’ve looked at upping your investment portfolio, you likely appreciate the value of property investment. Andrew Carnegie famously said that millionaires make 90% of their wealth from real estate.

Want to cash in on the gold mine that is the real estate market? Look into investing in a turnkey property. This trend in investing involves all the benefits of real estate investing, with none of the work.

Let’s look into what a turnkey property is and if this investment is the right move for you. 

What Is a Turnkey Property?

A turnkey property is a fully renovated and rent-ready property that an investor can purchase and immediately put on the market.

It is termed ‘turn key’ because rental income can come flowing in as soon as you unlock the door. There is no delay in the tenant moving in and no extra work involved in rehabbing the property.

Many turnkey homes are bought from companies that restore old properties for investors. This minimizes the money, effort, and time an investor has to put into a house to make it livable. 

Pros and Cons of a Turnkey Property

Turnkey properties are an essential asset to diversify holdings. Should you invest in a turnkey property? Let’s take a look at the key factors that will influence that decision. 

The key benefits of turnkey properties include:

  1. Tenant ready: A turnkey property is move-in ready, ensuring quick cash flow immediately after purchase.
  2. Turnkey property management: The company that renovates and sets up the property is usually in charge of managing the property. Thus investors do not need to trouble themselves with landlord duties.
  3. Remote investing: This is an excellent option for foreign investors who wish to take advantage of lucrative rental markets elsewhere.

The right turnkey property is also advantageous for its simplicity and ease. The main risks of turnkey properties are:

  1. Premium payments: The turnkey company will charge a premium for renovating and managing the property. In addition, monthly management fees can add up. 
  2. Lack of oversight: Since management is not the investor’s domain, they will have to hand over day-to-day operations to the turnkey company.
  3. Handing over control: Investors will also need to place all their trust in their turnkey company. This company will act as the executor, management, and primary decisionmaker. 

There you have it – the main pros and cons of a turnkey property! Many finance gurus believe that turnkey property investments are essential for every investor.

Ready to Buy a Turnkey Property Today?

This real estate investment model can be a great way to add value to your portfolio. It is also great for first-time investors as there are no management costs and renovation hassles associated with the property.

If you’re ready to jump into the world of real estate, turnkey property investments may be the best option for you.

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