Why Most People Prefer to Invest in Turnkey Real Estate?

Posted on Thursday, July 18 2013

America property Investment for New Zealanders

 

Kiwis are known to prefer to invest in property market as they believe it to be a reliable long term investment. However, with high property prices and low yields, more investors are looking abroad for better investment opportunities, such as in the States. The U.S. market is right at the bottom and the timing is perfect to get in today for great cash flow properties, while the market is beginning its recovery phase. The problem is, it is near impossible to be hands on with the investments located on the other side of the world. As a result, more people are looking to invest in turnkey properties in America. The word ‘turnkey’ is used for any asset that is complete and ready to be used such as a manufacturing facility.
In the investment properties industry, this word implies any home that is completely constructed and ready to be occupied. Turnkey homes are completed to the smallest of details. The exterior is fully constructed with all the necessary additions. The interior is also completely built to the last detail like the building of cabinets or the laying of carpets.
There are several benefits of investing in turnkey properties rather than incomplete or raw properties. A few key benefits are stated below:

Leverage on Others’ Expertise
Purchasing or renovating an unused or foreclosed property (mortgagee sale) is a challenging task. Restoring the entire property may require your attention and time. Moreover, a lack of knowledge about the real estate construction industry may prove to be a drawback. If you buy a turnkey property for investment, you will not be required to do any of these. A turnkey real estate property will be completely constructed, furnished and ready for use. You can just invest in the property and put it up for rent. You can also get already rented turnkey properties. This way you will be investing in a fully renovated house that has been renovated by experts who possess the knowledge and experience of working in the real estate industry.

Saves the Hassle, Time and Money
Renovation of a real estate property takes ample time, effort and huge amounts of money. Investing in a turnkey real estate property will not require you to spend any time, money or effort on renovating and rehabilitating the property. Everything will be done before hand. All you need to do is buy the property and start earning a return on it. This is a very convenient option for busy investors who do not have the time needed to get the property renovated.

Easy Financing
If you plan to invest in a turnkey property, you will be able to raise funds much more easily than you would by investing in a foreclosed property. This is because there is lesser risk in making an investment in turnkey real estate which is why lenders will approve your loan much more easily.
Just after you have paid the down payment along with the necessary closing and legal costs, you can start reaping the benefits out of your investment in the form of rental income.
The ‘ready-to-use’ nature of turnkey projects makes them an ideal form of investment. In addition to being reliable and secure, these real estate properties are perfect for busy investors who do not have the time or the relevant expertise in rehabilitating a foreclosed property. This enables the investor to capitalize on the benefits of investing in turnkey properties.

To know more about the services offered by Property4Prosperity, Inc., you can visit our website www.Property4Prosperity.com

or email team@property4prosperity.com

 

America property Investment for New Zealanders

 

 

 

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Expert's Bio

Chayot Ing-aram

Chayot is the co-founder of Property4Prosperity, Inc. He lives and breathes property investing. He received his BBS with Honours and Master in Finance from Massey University. He has been featured in one of New Zealand’s bestselling property investing books, interviewed in New Zealand Property Investor Magazine, and worked in the Committee for the local Property Investors' Association. He is currently residing in L.A., California, where Property4Prosperity, Inc.’s headquarter is located.

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