For first-time buyers, the journey to owning your first home can seem daunting. With so many terms and options, it’s easy to feel overwhelmed. One term you may come across frequently is turnkey property. But what does it mean, and how does it compare to other types of properties?
This guide will help you understand what a turnkey property is, what to look out for when buying, and how it stacks up against other options like fixer-uppers.
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What is a turnkey property?
The term “turnkey” refers to the condition of the property, when you turn the key, the home is ready for you to settle in without needing to carry out repairs or renovations. In simple terms, it’s a home that’s been fully updated and is in excellent condition.
These properties are often fully renovated and feature modern touches, from updated kitchens and bathrooms to fresh paintwork and new flooring. Essentially, turnkey homes require no further work from the buyer. The idea is that the home is in move-in condition right from day one. For many first-time buyers, this convenience is a significant draw.
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What does turnkey property mean?
When a property is described as turnkey, it means all the hard work has been done for you. Turnkey houses are fully prepared, meaning you won’t need to spend time and money on upgrades or repairs. It’s particularly appealing for those who want to avoid the stress of renovations, or who may not have the experience or budget to carry out substantial work on a property.
For first-time buyers, choosing a turnkey property can be a practical and hassle-free decision. Instead of waiting for renovations to be completed, you can enjoy your new home immediately.
Turnkey property vs. fixer-upper: which is right for you?
As you consider your options, it’s important to weigh up whether a turnkey property is the right fit or whether a fixer-upper might be worth exploring. Both options have their advantages and appeal to different types of buyers.
What is a fixer-upper?
A fixer-upper is a property that requires work before it’s ready to live in. These homes may have outdated features, need repairs to plumbing or electrical systems, or require cosmetic updates like new flooring or a fresh coat of paint. While the lower price tag of a fixer-upper can be appealing, buyers will need to invest time and money into getting the property up to standard.
Some buyers enjoy the process of transforming a fixer-upper into their ideal home, and it can be an opportunity to build equity through renovations. However, it’s essential to understand that the costs of repairs can quickly add up, and there’s always a level of uncertainty about how long the project will take or how much it will cost.
Related: Nine great home improvement ideas on a budget
Benefits of a turnkey property
Ready to move in: The primary benefit of a turnkey property is that you can move in right away. The home is updated, and there’s no need to wait for renovations or repairs.
No renovation stress: Turnkey homes offer a stress-free experience. With everything taken care of, you don’t have to manage contractors or worry about unexpected repair costs.
Predictable costs: Since the property is already in good condition, you can clearly budget for the cost of the home without worrying about unforeseen renovation expenses.
Modern features: Many turnkey houses are updated with the latest amenities, so you can enjoy modern living without the need for immediate upgrades. Whether it’s an updated kitchen or stylish new fixtures, these properties are designed with today’s buyer in mind.
Less risk: When you buy a turnkey property, you reduce the risk of encountering hidden issues down the line. The home has been maintained, so you’re less likely to find unexpected problems after you’ve moved in.
Benefits of a fixer-upper
Lower price: Fixer-uppers are typically priced lower than turnkey homes, making them an attractive option for buyers with a smaller budget.
Opportunity for customisation: With a fixer-upper, you have the freedom to design and renovate the property to your exact specifications. From the choice of flooring to the layout of the kitchen, you can make the home truly your own.
Potential for increased value: Renovating a fixer-upper can significantly increase its value. If done well, a well-renovated home can yield a strong return on investment.
Long-term gain: Over time, a fixer-upper can become an asset. The value may increase as you complete renovations, especially if you’re in a desirable area.
Related: How much value can outbuildings add to properties?
Which is right for you?
Choosing between a turnkey property and a fixer-upper really comes down to what you’re looking for in your new home. If you’re seeking a property that you can move into immediately, without the hassle of renovation work, a turnkey home is a solid choice. First-time buyers often prefer this option because it allows them to settle in quickly and avoid unexpected costs.
On the other hand, if you’re comfortable with the idea of rolling up your sleeves and investing time and effort into a property, a fixer-upper can be a rewarding option. If you have a clear vision for your dream home and the resources to tackle the work, you could find a fixer-upper to be a worthwhile investment.
Finding the right property
When buying your first home, it’s important to choose a property that fits your budget, lifestyle, and long-term goals. Whether you opt for a turnkey property or a fixer-upper, we’re here to help make the process as smooth as possible.
If you have any questions or would like to explore your options, contact your local Parkers branch today.
