Turnkey Properties: The New Real Estate Investment
Most of the members of Gen X in US have been seen to delay the process of homeownership lately. This is due to high price of the properties and less income to support the ever increase price of real estate properties.
However, with the improvement of economy in US and jobs being offered by various companies in the year 2015, the financial conditions of most of the people have started improving. The younger generation between the age group of 20- 30 have started investing in real estate properties. Though many people are buying live in, some are moving from the traditional approach and investing in turnkey properties.
Turnkey projects is said to be the passive form of investing in real estate. Here one owns a property for renting it to someone else. For buying a turnkey property in US, one can either take the service of turnkey company exclusively set up for this purpose or even can go to a real estate agent. Investors need to identify the area where they want to buy. The agents provide a listing of houses which are available in that area. The investor should visit the area and also the property before deciding on the one to buy. In most of the turnkey properties, it is ready to be given on rent and generate cash flow right from day 1.
Though, it seems like a dream investment, and many people have started investing in turnkey projects recently with a view to earn some extra revenue, it comes with its share of risks. Certain costs with respect to vacancies, maintenance, rising tax without rise in rent and much more has to be dealt with by the investors. Most of the investors in turnkey properties keep an emergency fund to take care of such unforeseen expenditures. Despite all the shortcomings, turnkey properties are very popular in the US and many people have been seen investing in it.