What is the value in a turnkey property? When looking for a property, do you want something that can be rented out as soon as possible or would you like to customize it and spend some time before making a profit?
The biggest value of turnkey property is that you will start to make revenue off the property right away! You might need to invest more money in order to do so, but you won’t have to worry about fixing things before you can rent it out. Usually, with a turnkey property, everything has been somewhat renovated or updated in order to have the rental income it does. Did you know it’s almost 30% cheaper to buy a property than rent it out? Sometimes you might get lucky and have a long-term tenant in the home when you purchase it.
If the property has been utilized as a rental for many years, the previous owner might already be set up with a rental management company. This will help you down the road and eliminate the stress of trying to find a reliable company.
Turnkey properties are a great investment option and a great way to make passive income. The only problem that investors run into when it comes to a ‘turnkey property’ is the fact that they think once they purchase a turnkey property, everything is good to go and it is fail-proof. Unfortunately, that is not always the case. It is essential that everyone who purchases a turnkey property or any property for that matter- look at it first.
There are still underlying problems that some properties could have and without seeing the property before purchasing it, you are not aware of these tribulations. Remember, a home is a big transaction and a liability. You want to make sure you are in the right neighborhood in order for the property to have a positive impact on the long-term marketability. Look into getting a house inspection if for some reason you cannot view the property before buying it.
Even if you can see the property it is always recommended to get a home inspection to make sure there are no problems that you don’t see.
The value of turnkey property is that many investors are paying a premium price when it comes to acquiring such property. If you are someone who does not have the time to renovate and flip the property or rent it out after it is updated, this is definitely the option for you. It might take some time to make back your income since you paid a higher price, however, it will be worth it in the end. Make sure you are purchasing a turnkey property in a high rental market.
This will ensure you that you will always or hopefully always have tenants. When purchasing a property in the Riviera Maya, you don’t have to worry about not being able to have your property rented out. If you are situated in a good location, that is even better. With all the tourists and expats coming to the Riviera Maya, the housing market and condo market continues to be a good investment option.
If the time is now for you to purchase a turnkey property, take a look at my list of Riviera Maya Properties here. I would love to sit down or chat over the phone about the market here in the Riviera Maya and why moving to Mexico is a great choice.