Is Turnkey a Good Idea? (The Answer Is Yes)
Once you move beyond the standard retirement account options, the options for investment with lower risk are surprisingly few and far between. You can dabble in things like mutual funds or index funds for relatively low-risk stock market investing. You can also look into things like US Treasury securities or municipal bonds.
Other options like investing in a business or starting a business are almost higher risk. One investment area that generally provides good long-term results is real estate, as property values tend to rise over time. One of the many options for real estate is a turnkey property.
Wondering if turnkey properties are a good idea? They are. Keep reading to understand why.
What Is a Turnkey Property?
In practical terms, turnkey properties are ones that someone could theoretically move into today. The turnkey definition is literally in the name. You can turn the key and start taking your stuff inside.
They require little or no renovation on the part of the buyer. That makes them ideal as investment properties for someone who doesn’t live in the immediate area.
In most cases, people look for options like turnkey vacation rentals.
One of the most attractive qualities of turnkey rentals for investors is that it usually means faster revenue. You don’t spend months dealing with renovations. Instead, you get the property and start advertising it immediately.
With any luck, you get a full-time tenant or schedule renters for the vacation season within a few months of taking ownership. That speeds up the incoming revenue.
You Can Make It Hands-Off
Unless you’re unusually blessed, odds are good that you work a full-time job already. You aren’t looking for a second one, just a way that you can make better use of your unallocated money. Turnkey properties are good for that in that you can hire a property management company to deal with the day-to-day tasks that come with any rental property.
You can weigh in on the big decisions a few times a month, but otherwise leave it as a hands-off investment.
It’s Not Location Dependent
While a local rental property may remain out of reach somewhere like Los Angeles, you can likely find something you can afford in another part of the country. Since property management companies also exist all over the country, it means you can hand off the tedious elements of management to one of them.
Want more details? Head over here for a more complete guide to turnkey investments.
Turnkey and You
A turnkey property is one of the lower-risk, long-term investments you can make. Property typically rises in value over time, which means you turn a profit by selling down the road.
In the meantime, it can serve as an ongoing revenue stream for you. You can also treat it as a hands-off investment by turning over daily management duties to a property management company.
Looking for more real estate investment tips or ideas? Check out the posts in our Real Estate Investments section.