Tuesday, August 8, 2023
By Jessica Hernández
Real Estate advisor in SILMÉXICO
Maybe in your search for your new home or your next investment, you have found properties with the title “turn-key” on real estate websites, and you may not have a clear definition of it.
First, we will set its overall definition, most of the people in the industry mention that a turn-key property is one that is occupied or move-in ready, with appliances in working condition and no obvious structural or electrical issues. Although “turnkey” homes are not fixer-uppers, they may nonetheless require cosmetic upgrades or a refreshing.
- What are the advantages of investing in turn-key properties?
- The benefits of turnkey properties are numerous, especially when you invest within emerging markets. These turnkey properties already reside in strong neighborhoods, so you immediately have a positive property investment in place.
- Another benefit of turnkey properties is the rental cash flow they create. And when you work with a real estate investment firm, they help you seek out tenants and show you how to successfully keep them long-term. You’re guaranteed a steady stream of cash flow, which is essential to keep your investment thriving.
- While rental income is one of the most common reasons to invest in turnkey properties, the ability to resell is what sets these investments apart. Sure, you can flip a home or build a condo complex for a quick payout, but with a rental property, you’re building equity, generating passive or semi-passive income, and you’ll still have the property to resell.
- There should be minimal repairs or renovations needed on the property.
In conclusion, generally speaking, turn-key properties don’t have to be “new” or “modern”, however, they have to be livable and ready to rent out upon purchasing. If they meet those requirements, they are considered turnkey.
If you found yourself interested, find out about the wide range of real estate that we offer in SILMÉXICO and contact us through any of our different communication channels: