What Is A Turn-Key House?
Doesn’t it sound a lot like a Disney movie, where you can turn the keys and step into a fully furnished house? Well, it is no Disney movie because such houses do exist. Thus, it is mostly noticed by the investors who are willing to invest in real estate. It is commonly happening in the Aussies.
What are these houses?
It is pretty straightforward from its name; turn-key houses, where you can turn the key and move in immediately. It is up to date, newly renovated, and completely furnished.
Hence, this property type is ideal for buyers and investors who do not have enough time to build one. Therefore, the ready-made property becomes an ideal choice to invest in, and gain a return on investment without inputting a great effort.
Technically, the house is renewed by the investor; hence, the buyer does not have to spend more. However, whether you are buying a turn key house, an existing resident on rent, or building a new one- each has its own pros and cons. Here below, we are going to look into the advantages and disadvantages of a turn key house.
What are the pros of a turn key house?
The ever-ready to use attracts its buyers and investors. Whether it is for commercial use or any other purpose- it is a source of instant income. Thus, a buyer looking to buy turn key homes will immediately make a purchase.
Another key factor highlighted above is that it is for those who do not have much time. Thus, they cannot closely be monitoring minor details. Therefore, these ready to use houses saves a lot of time and is a hassle-free choice.
Furthermore, you as a buyer do not have to worry about repairs and other maintenance. Perhaps, it is already done prior to handing it over to you.
What are the cons of buying a turn key house?
Investing in real estate comes with its own risk. There is no assurance that the amount you invested will get doubled. Meaning, there can be a sudden downfall in the market, making it go sour. Thus, the property taxes rapidly increase. Moreover, a natural disaster can damage and destroy property. So, there can be scenarios that are out of control, which leads to a huge loss.
Moreover, in general, the turn key houses generate lesser income than a property made on the investor’s observation and terms. However, when you are considering purchasing this type of home, you must know that it is the most expensive kind of property. It is not cheap, especially in the selling market.
Moreover, even if you intend to do changes in the interior or the exterior of the property, you cannot. As the repairs and changes are done before you purchase it, you have to live in that setting, with that layout and the style. Therefore, it basically means you have no control over the appearance of the building.
Indeed, turn key houses are a great option for both buyer and seller, but it has a large procedure.