Buy A Turnkey Property or Fixer-Upper Luxury Home?

Benefits of Fixer-Uppers:

  • Cheaper taxes
  • Potential for flip equity
  • Customization and creativity opportunities
  • Tax breaks for rehabilitation
  • Equity can be built while improving the value

Disadvantages of Fixer-Uppers:

  • Renovation costs, effort, and permits
  • Time-consuming and stressful renovations
  • Navigating permits and inspectors
  • Labor and material costs at an all-time high
  • Hiring contractors can take months
  • Shortage of qualified tradespeople and raw materials due to COVID
  • Managing contractors and living in an unfinished home

Benefits of Turnkey Homes:

  • No renovation costs
  • Minimal effort required
  • No additional costs for upgrades
  • Lower property tax rates for cheaper fixer-uppers
  • Higher upfront taxes for turnkey homes
  • Little to no equity to spare
  • Little to no customization and changes

Disadvantages of Turnkey Homes:

  • No flip potential
  • Limited opportunities for creativity or customization
  • May not have all desired features or amenities
  • Requires paying top dollar

Other Information:

  • 52% of homebuyers prefer a starter home or fixer-upper
  • Fixer-uppers can be sold for less than market value
  • Turnkey properties are at a premium and offer little to no equity

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