Turn-key vs Land & Build

At Good Property Hub, we specialize in recommending new build properties, most of which are purchased off the plans and classified as either turnkey or land and build packages.

The main distinction between these options lies in their financing and the impact on your short-term cash flow.

Turn-key:

A turnkey property is as straightforward as its name suggests – it’s ready to move into once completed, requiring only a simple turn of the key. This method of purchasing off the plan involves paying an initial 10% deposit to secure the property. Further payments are deferred until completion, relieving immediate financial pressure and allowing time to strengthen your financial position.

Typically, apartments and townhouses fall under the turnkey category, as entire blocks or buildings need to be finished simultaneously. While convenient, turnkey properties may come at a slightly higher cost due to included funding expenses.

Land and Build:

Opting for a land and build property involves a more intricate financing process. After securing the property with a 10% deposit and completing due diligence, you settle on the land a few months later. At this stage, the bank issues a ‘land loan’ portion of your mortgage.

Construction begins thereafter, financed through a ‘construction loan’ with a floating interest rate until completion. Once the house is finished, the final installment of the construction loan is paid, and you settle on the property. This allows you to consolidate and fix both the construction and land loans.

Standalone homes, duplexes, and properties designed for dual income can be either turnkey or land and build, depending on the developer’s approach.

At Good Property Hub, we guide you through these options to ensure you choose the best fit for your investment strategy and financial goals.