If you have money to invest and you ask anyone for advice as to where you should invest in then the majority of those people are going to tell you that the real estate market is the best place. There are a number of reasons why these people would be right in advising you to invest in bricks and mortar but in the main it is the stability which it offers. This market also offers you the chance to earn in many different ways and one of the most common types of property to buy for many is a. To those of you who aren’t aware of what this type of property is, we are going to explain a little more about it and who should invest in one.
What is a Turnkey Investment Property?
A turnkey property is an oven ready house or apartment which can be rented out instantly. These properties have been brought by someone who has then looked to get the place renovated, furnished and decorated ready for someone to move in, and then they will put the property on the market. What this means for the buyer is that they can drop their money down on the property and then list it for rental right away, without having to worry about any aspect of the property.
Why Does This Happen?
You may think to yourself ‘well why would the original owner not just rent the property out?’ this is a valid point but it is important to consider that each investor in real estate is in it for something different. In the case of those who sell turnkey properties, they are interested in buying cheap properties and then pimping them up before they sell on for a small profit. These investors have teams ready to go in and renovate properties and they do so en masse.
Who Should Invest
The people who buy turkey investment properties are those who have some money to burn and who want to get into the real estate industry. These homes in particular are aimed at those who want the investment but who do not have the time or perhaps the energy to give to this project. In the main what we see happen is that an investor will buy a turnkey property and then they will hand off the management of it to a property management company. For a small fee these businesses will help to manage the rental of the property, find tenants, collect rent and deal with any issues in the property such as repairs.
Those who invest in a turnkey property do still need to have a good understanding of the real estate market despite the fact that much of the responsibility will be taken away from them. Buying the right property in the right location is of paramount importance in order for this investment to be successful. Is this something which you would consider investing in?