Turnkey Investments : Everything You Need to Know
Turnkey is the term used to describe the level of finish to which you would like your project completed. Example of these items are:
- Tiling or laminate to the floor.
- Wall Painting.
- Window Treatments.
- Light fittings.
- Clothes Line
- Additional paving
- Alarm system
Many Investors and Developers are taking the option of including the Turnkey items to ensure they projects are rent ready or ready for resale. With a turnkey finish the dwelling is handed over fully completed without you having any input other than choosing colours. A Builder specialising in this area can even organise that if you choose want to.
Many Investors and Developers do not have the required funds to fully complete their projects to a Turnkey finish. This can create a lot of stress and cause delays in selling or renting out the finished product, resulting in reduced profit or income. By including the items in the building contract, the bank will also include the items in the valuation. Many lenders actually see this as an advantage, as it reduces their risk in the project should the borrower default on the loan.
Another reason why Investors and Developers include the turnkey items in their projects is that a lot of effort and time is required for you to source out different suppliers. Moreover, overseeing the installation of the products requires you to constantly open the development creating a lot of frustration. In addition, the Builder will not allow you access to the site prior to completion, which as already pointed out, creates a time delay.
Many Investors and Developers believe they can complete the turnkey items cheaper than a Builder. Whilst there is definitely an argument that you can cash and carry the products and potentially receive a discount on the goods, you still need to consider the logistics of installation and apply the costs of your own time in supervising the finishing items.
Another point to consider is that if damage is caused whilst installing the products to something else in the house, the installer may not repair the damage if you are dealing with them as a one off customer. The Builder would insist on the damage to be repaired as they are an ongoing customer.
Ventura iD and Multi Living Developments offer a free consultation service so you can see if developing is an option for you. Call (08) 9241 1600.