A turnkey property is a fully renovated home or condo for sale that can be immediately rented out or lived in upon purchase. Just as the term suggests, when you buy a turnkey property you should be able to literally “turn the key†and start living in your new home. All that is required for you to bring are your clothes. Turnkey properties tend to be more popular with investors – both first-time and seasoned. However, homeowners looking for a place to live in can also benefit from these types of properties.
Why Are Turnkey Properties Hot on the Market Right Now?
Back in 2008 the turnkey property market started thriving. It hasn’t stopped since. The main reason they continue to thrive is due to the ease with which investors can create a stream of passive income. Investing in real estate is a viable option for anyone looking for revenue. With markets such as Tulum in the Riviera Maya breaking tourism records and increasing non-stop, it comes as no surprise that investors are putting their hard-earned money down in the Riviera Maya.
Owning in Tulum – or Playa del Carmen and Cancun – assures a stream of constant vacation rental guests that will keep both your property and your pocket busy. When thinking of investing in a property abroad, turnkey is the easiest way to start making money immediately.
Purchasing a turnkey property means you will be able to put it up on Aribnb, VRBO and other vacation rental sites right away. Tulum attracts millions of tourists in a year, and many are looking for alternative accommodation. Your turnkey home could be the one that catches their eye. Many seasoned investors realize how fast Tulum has created a stream of revenue for them. That is why they quickly decide to invest in a second, third or fourth vacation rental property. Mostly, of course, turnkey.
Are Fixer Uppers Worth the Hassle?
When you are buying a property that is ready to be moved into, it should not need any fixing. In fact, a fixer upper is usually a worn-out real estate property that sells for a very affordable price due to the amount of work and maintenance it needs to be back up in the game. A turnkey property is rarely a fixer upper. However, it is up to you – the buyer – to either leave it as it is or renovate it or fix it. A fresh coat of paint, perhaps, is something you can afford to invest in. However, keep in mind that making major modifications or having to fix foundations, leaks or anything else are not worth the time when looking for a turnkey property.
Working with a Property Manager for your Vacation Rental Property
There are many advantages to working with a vacation rental management agency when you purchase a turnkey property. Mainly, it is avoiding having to find tenants all by yourself and market your property. The agency will help you get cashflow from the very first day. They also take care of all the maintenance and repair of the properties. When the gas runs out, the water hasn’t been paid or something breaks, they take care of it. They also make sure your guests pay in time and form and get the money to you.
Should I Sell My Turnkey Property Eventually?
All cycles must come to an end. Vacation rentals are good to have for a number of years, while you see a return on your investment. It is good to sell them after that. In places such as the Riviera Maya, where the vacation rental market is constantly increasing, selling your property isn’t so much about seeing a negative cashflow, but rather about cashing in now and investing in a new property. Property appreciation is one of the reasons many people use real estate investment to create capital. After a few years, your vacation rental might have gone up 10% or 15% from its original value. It’s a good time to sell then and invest in a new and better vacation rental.
At the end of the day, the decision to sell or not is yours. However, keep an eye out for the surrounding areas. Some areas appreciate over a period of years and then stop. If you want to earn a buck on your turnkey property that is when you should sell. Other areas, such as Playacar, rarely see any need to sell due to the incredibly high rental yield and capital gain. You could own a property there for years and years and continue cashing in.
Invest in a Turnkey Property Today
Investing in real estate is an easy way to diversify your portfolio. If you pay attention to the real estate market trends and invest in growing markets, a turnkey property is a winning situation. Moreover, real estate is one of the few investment industries that continually protects investors from a downturn in economy.
If you invest correctly, you will see how easy it is to make it your business. An investment strategy will help you solidify your income with increasing return on investment percentages in hot vacation markets like Tulum. At Top Mexico Real Estate, we have a team of expert investment consultants that can help you get started in searching for your first ideal turnkey property.
And remember, at Top Mexico Real Estate…we make it happen!
