If you’re currently house hunting, you might have come across a few properties advertised as “turnkey”. It is a common turn in the world of real estate investing and lets investors generate passive income without investing any time in repairs, renovation, or decor.
What is a turnkey property in Brampton?
A turnkey property is a fully renovated property with functional appliances and no particular electrical or structural issue. In simple words, it’s ready to move in. It could be a condo, townhouse, semi-detached house, or a detached house in Brampton.
These properties are usually sold to investors by companies that purchase fixer upper houses or houses that need some kind of renovation. They repair and renovate the property and also offer property management services, so the investor spends very little time on maintaining it.
While turnkey properties have become popular in the past few years, they are sold at a premium. You might not pay for the renovation separately but it’s included in the listing price.
Are there any pros of purchasing a turnkey property in Brampton?
Purchasing a property in Brampton is a big investment decision, so it only makes sense to weigh the pros and cons of buying a turnkey property.
- No time spent in renovating the property. This also means no time spent coordinating with contractors, plumbers, electricians, and handymen. You don’t have to select the finishes, wall paint, or appliances.
- You can achieve instant cash flow. There’s a huge demand for rentals in Brampton and buying a turnkey property allows you to immediately list it for rent.
- It is a great source for generating passive income. You can hire a property management company to look after the property and the tenants.
- It opens up opportunities for out-of-province investments. You can diversify your portfolio and purchase properties in several cities. It is especially beneficial for new investors with little capital. You can purchase a condo or townhouse within $500,000 in Alberta but won’t find anything reasonably good in the Greater Toronto Area.
- Renters love renovated properties. It’s highly likely your property will be rented out in just days of listing it. Renters are looking for properties with modern finishes, good electricals, and updated appliances.
What are the cons of purchasing a turnkey property in Brampton?
- You might overpay for the property. With repair and renovation costs included in the price, there’s no appropriate way to determine the property’s actual worth.
- Bad property management firms can ruin your impression. It’s worse when you purchase an out-of-province property and the tenants need something fixed but the manager doesn’t act on it. The tenant can file a complaint against you and you could land in legal trouble.
Where can I find a turnkey property in Brampton?
Find a realtor in Brampton, like me, Catherine Nacar, who specialises in working with investors. We have access to MLS, which is a listing service that gives us access to all properties for sale across Canada. We also have access to off-market turnkey property listings and can work with you to find the most suitable property for you to invest.