Turnkey or Turkey

In Uncategorized by Jeff OsborneLeave a Comment

To the uninitiated investor some of the marketing material provided by some builders, especially on the web, looks pretty enticing but when land prices and package prices seem too good to be true then ‘the internal alarm bells should start ringing’.

Life is full of perilous small print and the journey into property investment is no different. What appears to be great value, or even an absolute bargain, can be fraught with hidden costs.

Let’s start from the initial glossy brochure. Does the ‘too good to be true’ quote include site works? If not add up to $40,000 if something hard is struck or the land is sloped.

Have you ever seen a completed house where the occupants have moved in yet it doesn’t quite appear complete? We’re guessing the turf, landscaping, postbox, fencing and more were not in the original quote, and dismissed in – you guessed it – the small print!

Driveways seem to be conveniently missing in a lot of quotes too; we don’t understand this. What’s the point of a dream double garage that can only be accessed by a 4×4!

Go inside and you might find that certain appliances are missing; blinds, flyscreens, air con, carpets etc. etc. The list could go on.

Don’t think that the house they showcase is their standard fare. No, this is normally fully optioned and costs up to 30% more to construct. Whilst a bare bones construction may be OK for an owner-occupier that wants to customise many fittings, an investor needs to have a completed home ready for the tenant to back their furniture truck into the (sealed) driveway, move in and just start living.

The point is this. GoReal selects full turnkey and complete investment properties with all the necessary elements that investors and tenants require included in the build contract at a fixed price.

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