A full turn-key house is an upgrade made available by home builders in which they take care of necessary additions to the home, like internal wall painting, flooring, and blinds. By upgrading to a full turn-key package, you can relax knowing your home truly will be a ‘move-in ready’ solution. Once you receive the keys you can immediate lease the property or move in and start living the dream!
A full turn-key house is a fully completed home
A full turn-key house is a fully completed home that features an array of inclusions including some of these to name a few:
- Fixed site costs covering all requirements and regulations*
- Building permit
- Driveway, footpath with landscaping
- Featured front facades
- Full fencing
- Ducted heating
- Remote controlled garage
- Fibre OpticReady, for NBN connection or compatible fibre optic services
- Window furnishings and flyscreeens
- Fully fitted flooring (carpet, timber, tiles etc)
- Stone bench tops
- Stainless steel kitchen appliances
- LED lighting
- Alarm or security (if desired)
- Alfresco (if desired)
- Clothesline and letterbox
- Split system cooling (evaporative cooling if desired)
*A full turn-key pricing solution includes fixed site-work costs. These are the necessary earthworks for a new house and land package, like connections to power, water, sewerage and gas, and the installation of things like soak wells. All of these things need to be completed before your build takes place.
Full turn-key is easier to obtain a loan for
When obtaining a home loan, a full turn-key property is an easier asset to borrow money for. As the prices are fixed and fully completed, banks and financiers have comfort that the home is safe to occupy or invest. Being an owner-builder is quite stressful and banks are reluctant to borrow money to a home that may end up being incomplete. As the bank will use the asset as security, an incomplete home will not protect the bank to repossess and sell should the person borrowing the money become unable to meet their loan repayments.
Is a full turn-key house worth it?
A full turn-key house and land solution provides great value. It gives a buyer a stress-free and enjoyable experience with the satisfaction that the home will be built with quality. The prices are fixed, allowing you to have peace of mind no price rises will occur during construction. The banks also know what you need to borrow to complete the house and the home will have no short cuts by excluding fixture and fittings, driveway, landscaping or other items that can be difficult to pay later.
How much deposit is needed to fund the full turn-key home?
When buying a brand new home you generally need a 5% property deposit. If you have purchased an off the plan block of land, there are no further payments required for the builder until the construction commences. The home can’t obviously start building until the land titles.
A typical 5% deposit is calculated based on the property purchase price. For example a $270,000 house would require a $13,500 deposit (5% of $270,000).
What is not included in a full turn key price?
Many builders may include some different inclusions. Some may include an alarm while others may include evaporative cooling but the mainstream features are very similar. All full turn-key solution generally doesn’t include the following costs:
- Stamp duties
- Government registration fees
- Conveyancing and Solicitor fees
- Loan application fees
- Mortgage registration fees
How long does it take to build your own house?
The building process to complete a full turn-key house is usually between three and four months to reach completion after the build permit is approved, however it can sometimes take up to six months, depending on the weather, delays in obtaining certain building materials supply delays, or if a buyer has asked to make some later changes to the plan.
Just remember a house can only start building once the land titles and the build permit is approved. The builder will submit the build permit on your behalf. This can typically take three to six weeks, depending on the council you are working with.
What to do next?
If you’d like to learn more about building a home, please don’t hesitate to contact us. We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
June 2020
