What Does "Turnkey" Really Mean in Home Building?

15th July 2024

Finance & Budgeting Pre-Construction Post-Construction

This article breaks down the true meaning of a "turnkey" home, highlighting what should be included, who benefits most, and what to watch out for when builders use the term misleadingly.

What Does "Turnkey" Really Mean in Home Building?

When searching for a new home, you've likely come across the term "turnkey." But what does it actually mean? More importantly, how can you ensure you're getting a true turnkey package rather than a misleading offer? In this episode of the Home Building Hub podcast, hosts Colin Bischof and Darren Brennan break down the concept of turnkey homes, what they should include, and who they are best suited for.

What is a Turnkey Home?

A turnkey home is designed to be completely ready for move-in as soon as the keys are handed over. This means all essential features and finishes are included, eliminating the need for additional work after construction is completed.

Common Turnkey Inclusions:

• Front and rear landscaping
• Fencing and side gates
• Driveway and footpaths
• Letterbox and clothesline
• Blinds throughout the home
• Concrete pad for outdoor areas (where applicable)

The idea is simple: turn the key, walk in, and start living without having to worry about installing extras.

The Difference Between "Turnkey" and "Full Turnkey"

Colin and Darren discuss how the term "turnkey" is often misused in marketing. Some listings claim to offer turnkey homes but only include a fraction of the necessary items, such as front landscaping only rather than the entire front and rear yards for example. This can be misleading.

To differentiate, some builders use the term "full turnkey" to indicate a comprehensive package that includes everything needed to truly move in without additional costs.

Who Benefits Most from Turnkey Homes?

Turnkey homes are not for everyone, but they are particularly beneficial for:

1. Investors

• A turnkey property is "rent-ready," allowing landlords to secure tenants immediately after construction is completed.
• No need to worry about organising fencing, landscaping, or blinds—everything is already in place.

2. First Home Buyers

• Particularly beneficial for buyers on a budget who don’t have extra cash to spend on finishing touches after moving in.
• Can be bundled into the home loan, preventing the need for out-of-pocket expenses after settlement.

3. Downsizers

• Provides a low-maintenance, hassle-free solution.
• No need to organise trades or complete landscaping after moving in.

When Might a Turnkey Home Not Be the Best Option?

For some buyers, a standard turnkey package might not suit their needs. Here are some situations where opting out of a turnkey package may be better:

• Custom landscaping preferences: If you want a unique garden, pool, or high-end outdoor features, a standard landscaping package might not meet your expectations.
• High-end finishes: Some buyers prefer specific window coverings, fences, or driveway materials that may not be part of a turnkey package.
• Acreage properties: Large lots typically require more custom landscaping and fencing, which is not covered in standard turnkey packages.
• Budget constraints: Some buyers may prefer to complete external works in stages to manage cash flow.

What to Look Out for in Turnkey Packages

Not all turnkey homes are created equal. Here are key questions to ask your builder:

• What type of landscaping is included? (e.g., turf, plants, irrigation)
• Does the fencing include side gates?
• What type of blinds are installed? (e.g., block-out blinds, sheers)
• Is the driveway fully completed, or only a basic path?
• Are clothesline and letterboxes included?
• What’s the quality of outdoor areas—concrete pads or crushed rock?

Understanding these details can prevent costly surprises down the line.

Key Takeaways

• A true turnkey home means you can move in and start living immediately, without needing to arrange additional works.
• Some builders misuse the term "turnkey"—always verify what’s included.
• Full turnkey ensures all necessary external and internal features are completed.
• Turnkey is ideal for investors, first home buyers, and downsizers, but may not suit those who want custom landscaping or high-end finishes.
• Always ask for a detailed list of inclusions to make sure you’re getting what you expect.

Episode Link & Further Resources

For the full discussion, listen to the episode here: What does "Turnkey" really mean?

Glossary of Terms

• Turnkey Home: A house that is ready for immediate occupancy upon completion.
• Full Turnkey: A home that includes all necessary finishes, landscaping, and fixtures, ensuring no additional work is required after handover.
• Inclusions: Features and fixtures that are part of the home package (e.g., driveway, blinds, landscaping).

FAQs

1. Are all turnkey homes the same? No. Some builders offer partial inclusions while others provide full turnkey packages. Always check the specifics.

2. Can I customise a turnkey home? Some builders allow minor modifications, but full turnkey packages are usually designed for convenience, not customisation.

3. How do turnkey homes impact financing? Since all inclusions are built into the contract, the cost can be included in your mortgage, preventing the need for extra expenses after move-in.

4. What should I ask my builder about their turnkey package? Request a full list of inclusions, including landscaping, fencing, blinds, and outdoor features, to ensure no surprises.

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at Home Building Hub and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.