The Benefits and Drawbacks of a Turn Key Property
Purchasing a turnkey home on Sanibel Island or anywhere else for that matter may seem like the most beneficial of purchases. But a turnkey property may not always be the best investment in every real estate situation. Here are some of the benefits of turnkey properties and some of the drawbacks.
What is a turnkey property?
The term turnkey property is used to describe a home that is for sale that is in almost immaculate condition. One that will not need any fixes upon moving in. It is a property where you can turn the key in the front lock, open the door, and move right in. That's it.
The benefits of purchasing a turnkey property
Move in right away
Probably the most widely recognized benefit of the turnkey property is the advantage of being able to immediately move in without doing any work. Whether you are purchasing a turnkey property for your own personal use or with the hopes of turning it into an investment rental property there is peace of mind knowing that you will not have to put any more money into the property right away before you can use it.
When it comes to investment properties on Sanibel Island this can give you a great advantage of being able to instantly market the home available for rent whether it be for vacations or long-term rentals. This allows you to start making a profit off of rental income right away.
It may save you some money
When you purchase a turnkey property you can also benefit from saving money on your purchase upfront. Not having to make repairs or upgrades to the home so that it fits your best interests and needs before moving in will save you a lot of money on labor, material, and maintenance costs.
The drawbacks of purchasing a turnkey property
Higher listing price
A property that is in its best condition with no large repairs or needs for cosmetic updates will come with a higher list price. When everything is taken care of, up-to-date, and recently repaired the home price will reflect this better condition of the home.
There may be less to choose from
Finding a turnkey property, especially at a time when the scales are tipped toward a seller's market means that you will have fewer properties to choose from. Sellers know that when inventory is low having a home in its best condition is not necessarily mandatory to be able to sell a home. As such more homeowners decide to risk a slightly lesser asking price for the ability to be able to sell their homes quickly.
Loss of customization
Purchasing a property that needs no work done to it can mean losing out on some customization savings. While you can customize any home in any condition to exactly how you want it, purchasing a turnkey property will not only cost you the highest possible list price it will cost you again when you decide to make renovations to customize the home perfectly to your tastes and needs.
If you know you are pretty particular in the specific items you want in your home and that no matter what home you purchase you will need to do some of your own renovations it is better to purchase a home that could use a little attention instead of one that is ready to go. It will save you a lot of money that you may not have in your budget to customize if you purchased a turnkey home.
Turnkey properties are a great investment especially if you are unable to make home repairs on your own or afford to have someone come in and make renovations. But there can be some pluses to properties that need a little attention, especially here on Sanibel Island.
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