For real estate agents and residential property developers, there isn’t really much of a mystery on the question: What is a turnkey home?
The turnkey meaning here simply implies that the homebuyer gets a residence ready for occupancy right away upon purchase.
This turnkey solution available on the residential market is thus also often referred to in the trade as move-in ready home or as house and land package.
For many home buyers, the elements defining what is turnkey home are just right for their needs. Upon receiving the key of their purchased residence, they can literally just turn it and begin living in a brand new house.
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Turnkey solution for first-time home buyers
A move-in ready house offers many advantages to prospective buyers, especially first-time homeowners. They can avoid the hassles of choosing the home design, planning the house construction, and finding and dealing with an architect and building contractor.
Pre-construction, the search and purchase of a home lot can be equally challenging. The plus factors defining what is turnkey home enable home buyers to avoid not only these but also the costs of site development.
These include not only expenses for earthworks but also for connections to water, power, gas and sewage. Such site works alone can cost anywhere between $10,000, and $20,000.
What does turnkey mean in its inclusions?
Besides the essential site connections of a home, a turnkey residence already comes with features necessary for immediate occupancy. Some move-in ready houses may even sold as turnkey furnished, coming outfitted with everything from art decor to designer kitchen appliances.
Breaking it down, these are some of the inclusions that set the essence of what a turnkey home is.
- Interior painting
- Carpeting or floor covering
- Security doors and screens
- Kitchen furnishing
- Light fittings
- Basic landscaping
Buyers who’d love knowing what is turnkey home
Besides first-time home buyers, a turnkey house is ideal for prospective buyers with a limited budget and seeking a new build. A move-in ready residence can likewise meet the needs of singles, childless couples, and buyers who want to downsize to a smaller property.
Homeowners who are selling their residence will find a turnkey house a blessing too. They have a new property to move into immediately after their sale, thus avoiding rental cost while looking for a house to transfer into.
Investors can also find the turnkey solution as a promising way to generate a handsome ROI. With minimal time and effort, they can acquire a brand new residence as a rental property. It can have a better potential return than an older residence, especially if the property is located in a growth area.
Turnkey meaning equals to more buying options
When buying a turnkey home, the market offers different options. House and land packages that real estate developers jointly offer are the most common move-in ready homes available.
Buyers can pick from pre-built townhouses and single-family residences that they can move into immediately. Among these residences are display or model homes that many real estate developers construct to help market their projects.
With these properties sold jointly, buyers can save time shopping separately for a house and a plot of land.
Some properties are also sold as a turnkey split-contract house and lot package. In this case, the buyer has a contract for a land purchase from a developer and a separate building contract with a construction company.
This is still a quick turnkey approach, as the builder has already set the best design suitable for a land block. As an added advantage, its buyer won’t shoulder the stamp duty cost of the land component.
How to find the right turnkey solution
Although the turnkey meaning essentially applies to ready-built and move-in ready homes, the bundling of the house and land package are not all exactly the same. Here are some pointers when considering what a turnkey house is as advertised on the market.
Know the developer
Research different real estate developers and builders, as they may have varying definitions of what are included in a turnkey home or a house and land package.
Pick those who communicate openly and have clear-cut timeframes on the move-in ready house that they offer. Firm up what features are actually included in the turnkey house.
Assess the contract
There are a number of choices and terms that you will come across when looking for a turnkey solution to your housing need. A common option that you’ll likely to encounter is a “turnkey, fixed price house and land package.”
You have to examine how it compares with the standard house and land offers on the market. Check which option is best with regards to your budget and needs.
Check building code compliance
The location of a move-in ready house is very much in play as you examine what is a turnkey home among market choices. Because you were not involved in the construction planning and home design, your real estate agent or you yourself will have to verify the property’s compliance with local building regulations.
Scope the location
Naturally, you will also have to scope the location of the property with regards to its fit with your lifestyle needs and preferences. See to it that the turnkey solution that you picked is convenient to transportation and local amenities.
You also have to go beyond looking at facilities like shopping centres, schools, and healthcare providers, and life and leisure hubs. The safety and security in the neighbourhood of the turnkey residence is also another vital element to look into.
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