Second-home buyers who hesitated to buy during the volatile luxury market now have opportunities to invest in turnkey properties, which are essential “move-in ready,” fully furnished homes. Affluent buyers are attracted to these properties for various reasons, but the primary reason is to instantly enjoy the house the moment they unlock the door. Recent media reports confirm that luxury home buyers often don’t have time or inclination to furnish, decorate and equip an empty property.
Turnkey properties were popular among jet-setters and celebrities in the past, but now second-homebuyers are embracing the trend! Let’s dive into what a turnkey property is and why it is becoming the new luxury mindset.
What is a Turnkey Property?
Turnkey properties take “move-in ready” to the next level. These homes are furnished with impeccable interior design, high-end furniture sets, upgraded or new kitchen appliances, cabinets, and countertops. Generally, turnkey homes are sold “as is” and require very little to no remodeling from the buyers. Often, luxury turnkey homes will come with original artwork or vintage furniture sets that are required to stay with the property and is owned by future residents, thus, increasing investment values and interests from affluent buyers.
Purchasing a turnkey property sidesteps most decision-making responsibilities regarding home selections and allows buyers to eliminate all concerns about furnishing and decorating. Instead of a chore, moving becomes a simple delight, involving only clothing and personal effects.
Why Are Turnkey Properties Trending?
Luxury turnkey properties are trending among second-home buyers simply because they are convenient and provide instant gratification for owning a home. These homes cater to the “move-in now” mentality that emerged during the pandemic when the available housing supply became severely limited. Affluent buyers simply want to “turn the key,” walk into the home and immediately enjoy the lifestyle. The fact that such buyers may opt to replace furniture and accessories in the future is not viewed as a deterrent.
In areas with high construction costs and serious labor force issues, turnkey homes offer an innovative solution for impatient buyers. And in other prime markets, they provide wanted convenience, freeing buyers from the need to make time-consuming home-buying decisions.
Three Hottest Markets for Turnkey Properties
Multiple spokesmen for multi-million dollar developments in Hawaii, California, and Grenada reported an increase in demand from local and international affluent buyers.
On the Hawaiian island of Kauai, a spokesman for a 1,010-acre development notes that “carefree, furnished residences” will represent a larger percentage of the homes planned for future development. Kukui’ula Development president Richard Albrecht notes that, in 2019, four such turnkey homes were offered for presale, and “they all sold within hours.” Affluent buyers are looking for second homes (not vacation homes) without going through an extended design and construction process.
Another resort president, Terri A. Haack of the southern California 102-acre resort of Terranea, sees similar interest from buyers, but with a twist. Since California state law prohibits the resort’s owners from using their properties as full-time residences, homebuyers opt for the ease of buying turnkey properties as “ready to enjoy” spaces. With construction and labor costs increasing, turnkey properties offer homebuyers “peace of mind and instant enjoyment.” Unfortunately, demand far outpaces supply in Rancho Palos Verdes, according to Ms. Haack. “Since selling out all available-for-sale properties at Terranea, owners have shown little interest in selling their property.”
On the island of Grenada, “pandemic-driven challenges” related to construction and the associated shortage of materials and furniture became a driving force in the appeal of turnkey spaces. Silversands Villas on the island of Grenada offers future residents the advantage of obtaining a “turnkey citizenship program” where they can apply for Grenada citizenship after making a minimum investment of $200,000.
What’s in Store for the Future?
Turnkey properties are not just a passing trend but a new luxury mindset for the upper tier. As luxury real estate professionals, staying ahead of trends like this could improve your credibility during listing appointments or networking with potential clients. For more opportunities to access premier market reports, data, and housing trends, join our online community of over 6,000 members throughout the U.S. and Canada!
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