How Turn Key Transactions Work When Building a Home

 If you have decided to build a home, or at least have one built, you might have heard about the phrase turnkey when it comes to homes. You might have also wondered what turnkey means. Let's take a look at the process and what this means to you.


What does turnkey mean?


There are two kinds of homes that you can buy - custom-built or turnkey. A custom built home is made either completely to the buyer's requirements, or at least in part. Some houses are built with input from the buyer on key areas like room layout, window and cabinet placement, and flooring types. Other custom-built homes are built to a certain amount of the job being finished, and the rest will be finished by the homeowner.


A turnkey home, on the other hand, is one that is built by the contractor to completion and the home is able to then be sold to anyone. All of the design and planning comes from the contractor.


Why do you want a turnkey home?


One advantage to this is that the contractor holds the responsibility for the performance of all of the items for a certain amount of time. Think of it like a manufacturer's warranty on an item.


Another upside is that the home is ready to move into right away. Think of turnkey as being ready to turn the key to the front door lock of your new home.


Title to the property is easy to track, too. The developer owns the land and builds the house on that land. They might even offer financing so everything is easy to negotiate and easy to understand. If the builder doesn't offer financing directly, the company should be able to connect you to a mortgage broker that will be able to help you.


Using a turnkey home as an investment


In the investment part of real estate, a turnkey home is all ready to go as a package. The home is bought and fixed up or the new one is built, the home is leased or rented to a tenant, and then the property is sold to a buyer. That way, the buyer is ready to go with a property already generating income.


These types of investments are much easier to get started with instead of flipping. You don't have to worry about finding contractors or discovering any hidden damage to the home. You don't have to be in town to deal with the property, either, and meet with the inspectors. If you find the right company, they can stay on as a property management company, so all you have to do is sit back and collect the income.


You may also be able to find a home that you like, find the right company that will do all of the work to buy and renovate a house, and then sell it to you. The home does usually need to be in solid structural shape with a strong foundation.


If you are looking into buying a turnkey home as your primary home, you will be able to save yourself all of the stress and literal backache from trying to fix things up. You can move in, settle in, and relax.


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Thank you for reading.


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Please note the content is not intended to be, legal or investment advice. You should consult a licensed attorney or realtor for advice regarding your individual situation.




Article Source: http://EzineArticles.com/8973401

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