If you have been considering increasing your investment portfolio, you likely appreciate the value of property investment. Andrew Carnegie famously said that millionaires earn 90% their wealth from real estate.
Want to cash in on the goldmine that’s the real estate market? Consider investing in turnkey property. This investment trend involves all the benefits of real estate investing, minus the work.
Let’s have a look at what turnkey property is and whether this investment is the right move for you.
What Is Turnkey Property?
A turnkey property is a property that has been entirely renovated and is prepared to be rented out that investors can purchase and put on the market instantly.
It’s called a ‘turn key’ because the rental income can flow in as soon as you unlock the door. There is no delay in moving tenants and no additional work involved in rehabbing the property.
Many turnkey homes are purchased from companies that return old properties to investors. This minimizes the money, time and effort that investors must put into a home to make it livable.
Pros and Cons of Turnkey Property
Turnkey property is a very important asset for diversifying ownership. Should you invest in turnkey property? Let’s have a look at the key factors that will influence that decision.
Key benefits of turnkey properties include:
- Ready tenant: Turnkey properties are ready to move, making sure quick cash flow instantly after purchase.
- Turnkey property management: Companies that renovate and erect properties are normally in control of managing the property. Thus investors don’t need to bother themselves with the duties of landlords.
- Remote investment: It is a wonderful choice for foreign investors looking to take advantage of the lucrative rental market elsewhere.
The right turnkey property is also advantageous because of its simplicity and convenience. The main risks of turnkey property are:
- Premium payment: A turnkey company will charge a premium for renovating and managing the property. In addition, monthly management fees may add up.
- Lack of supervision: Since management is not the domain of investors, they must leave day-to-day operations to turnkey companies.
- Surrender control: Investors also need to put all their trust in their turnkey company. This company will act as executor, management, and main decision maker.
There you have it – the main pros and cons of turnkey properties! Many finance gurus believe that turnkey property investment important for each investor.
Ready to Buy a Turnkey Property Today?
This real estate investment model can be an excellent way to add value to your portfolio. It’s also great for budding investors as there are none of the management costs and renovation hassle related to the property.
If you are ready to jump into the world of real estate, a turnkey property investment may be the most suitable option for you.
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