Mortgage rates are peaking again after their downfall in 2020, which means there is more competition on finding the perfect home. But what many buyers aren’t aware of, is that they’re missing out on a huge real estate opportunity.
The opportunity being, move-in-ready homes! These homes are great investments for those looking to rent or buy. But if you still don’t believe us, then keep reading to learn about the benefits of these amazing homes!
What Are Turnkey or Move-In-Ready Homes?
So you might be wondering, “what is a turnkey property?” For starters, “turnkey homes” or move-in-ready homes need no major repairs and little to no cosmetic fixes.
These homes are sometimes equipped with a proper HVAC, updated plumbing, good floors, working appliances, and some cosmetic renovations. Therefore, you can begin renting or living in the space immediately after purchasing the home.
But be aware that these terms do vary depending on the seller and what they deem to be “ready for move-in.” Nevertheless, turnkey homes always have the absolute essentials and comfortable living spaces.
1. Renting Options
Not all buyers are looking to move into their homes after buying them. Luckily, if you’re not ready to move in, you can make a profit by renting out your home.
Since it is fully equipped, you can rent out the rooms to prospective tenants who are not ready to buy a home. So it’s a win/win for everyone involved! And you can set your own rent according to the laws in your area, the location, the state of the property, and the amenities!
2. Lower Taxes
When it comes to turnkey homes, there is a lot to gain as far as tax cuts go. For example, there are some tax exemptions for regular properties. However, the gains must be reinvested back into the property within two years.
But if the reinvestment exceeds the two years, these tax cuts no longer apply. Luckily, with turnkey homes, there is no service tax or waiting period. Therefore, you don’t have to reinvest any of your profits back into the home in order to lower your taxes.
3. Move In Whenever You Want
Often, new homeowners have a waiting period before they can get settled. Luckily, turnkey homes have no waiting period because they require no repairs.
And often you will be the first occupant in the home. So you don’t have to wait for any past occupants to pack and move out! So if you’re on a time crunch and need to move into a location ASAP, then consider a turnkey home.
4. Comes with No Surprise
A lot of the time with non-ready homes, you have to envision the repairs and your furniture during the viewing. Luckily, a turnkey home needs no imagination to see if it’s where you want to live.
So when you go to the viewing of the home, you will already know what you’re paying for and if it’s up to your standard. You will also have no surprise upon the move-in day as with regular homes that may have hidden repairs.
5. No Down Payment Required
A move-in ready home does not require a down payment. The only payment that is needed is an EMI. This payment is often lower than a down payment and offers more security. In fact, if the property is still under construction, you will not make a payment until everything is complete.
6. Low Maintenance Home
Turnkey homes are brand-new homes so they require no repairs and little maintenance. So you don’t need to worry about getting any roofing estimates or a new AC unit for a very long time.
And since you’re the first occupant in the home, you don’t have to worry about broken appliances. Nevertheless, most turnkey homes still come with a warranty. So if any unforeseen expenses do arise, you may be protected under your warranty.
7. Energy Efficient Options
Developers and contractors are catching up with the market. So more turnkey homes are turning into energy-efficient homes. In fact, you may see a lot of move-in-ready homes that have LED lights, low-cost HVAC systems, and even solar panel energy sources!
Overall, turnkey homes are updated to match the market. So you’ll always find that turnkey homes are more progressive in terms of energy savings. And of course, this is good for anyone that wants to save money on electrical bills.
Should I Buy a Turnkey Property?
The cost of home renovation can go up to the thousands, especially for older models. Not to mention, these repairs can take months and even years to complete! So if your purpose was to buy property rentals for leasing, then you’ll be stagnant on your investment for a while.
So it is recommended for buyers to buy turnkey investments, especially if it isn’t their first home. However, turnkey properties can be hard to find since there is such a high demand for them.
So if you’re wondering how to find a turnkey property, consider these easy tips:
- Work with an agent
- Get connected with off-market listings
- Raise your budget
- Allow yourself more time to find the perfect property
Of course, finding the perfect move-in ready home will require some serious connections and patience. But remember to stay motivated and aggressive with your offers, because these homes bring back many rewards!
Buy a Move-in-Ready Home Today
Move-in-ready homes are selling fast. But now that you know the benefits, then you can start being proactive in your search for the perfect home!
If you enjoyed this article, then consider checking out the rest of our blog. There are some great posts about real estate and other business-related topics.Not only are move in ready homes less stressful to invest in, they also can help you save money and speed up the process. Read more about all the benefits here.Not only are move in ready homes less stressful to invest in, they also can help you save money and speed up the process. Read more about all the benefits here.