Loan on Turnkey Property


Why Turnkey Properties

Purchasing a turnkey property can seem like the answer to all your prayers for first home buyers and investors. Brand new, ultra-modern and at a fixed price, what’s not to like? The Reserve Bank seems to agree, and current LVR (Loan to Value Ratio) restrictions do not apply to new homes.

Turnkey homes are undoubtedly an excellent option for many. And while there are plenty of upsides, there are also some downsides. Here we provide an overview of what you need to know.

This information is for general purposes only. Before making any decisions, it’s vital to talk to your SWIFT Mortgage adviser for personalised advice.

What is a turnkey home? 

A turnkey home is what it says on the box. It’s a brand new, fully completed home. All you need to do is rock up and turn the key.

All the hassle and responsibility for the design and construction of the home rests with the developer. You pay a deposit, usually 10 per cent of the purchase price, and the rest is due on the settlement date. This is usually ten days after the title and code of compliance have been issued.

Benefits of turnkey properties

You’re buying a brand-new home, usually with a 10-year guarantee.

It comes at a fixed price, so you know exactly what you are paying.

It’s easy on your cashflow. You can continue saving, and no repayments are required until completion.

Less stress is involved. No more trudging around open homes or competing with other buyers at auction.

You may be eligible for a government first home grant of up to $10,000 for a new build compared to a maximum of $5,000 for existing homes.

Downsides of turnkey homes

Construction can take longer than anticipated. Weather or materials shortages could push out the completion date. And with most finance approvals lasting up to one year, construction delays could cause problems.

The developer may go bust before handover.

Poor workmanship. The completed property may not meet your expectations.

Is buying a turnkey property right for me? 

If you are considering buying a turnkey property, it’s vital to do your homework beforehand. Here are some tips on how to prepare.

Have a good lawyer to review the paperwork. Contracts vary from developer to developer. Be sure to check whether there is a sunset clause. Recently, there have been many media reports where developers have used sunset clauses to bail out of contracts and resell at higher prices.

Make sure your deposit is held in a trust account to protect you should the developer go bust.

Know what you are buying. Check out the developer’s track record, have a look at any show homes and double-check what’s included in the contract. For example, some builders include external landscaping while others don’t.

Thinking about buying a turnkey property? Everyone’s situation is different, so it’s essential to discuss the options with your Swift Mortgage adviser. Contact us today!

Hear what our clients have to say!

Swift Mortgages
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matt simmatt sim
07:10 03 Apr 24
My encounter with Swift Mortgages was nothing short of outstanding! Meysum's professionalism and unwavering assistance throughout the process were truly remarkable. He kept me informed and executed tasks promptly, streamlining the entire experience. I wholeheartedly endorse Swift Mortgages for their unparalleled service. They undoubtedly set the standard for excellence!
sushil chandsushil chand
00:10 02 Apr 24
What an amazing experience dealing with Swift Mortgages. Izaz was very professional and very helpful during the whole process. He kept us informed and act promptly. He made the whole process so easy.We strongly recommend Swift Mortgages they are the best.
Dipendra TuladharDipendra Tuladhar
03:31 19 Mar 24
We stumbled upon swift with a reference from a family friend.We were lucky to have Joyce as our Advisor on achieving the goal of our lives. Swift (Joyce) was there for us through out our process until and also after shifting to our First home, guiding and providing with the information and knowledge which we needed to make the best of decisions that would suit our need.I highly recommend choosing Swift for all of the service they provide.
Monisha PrasadMonisha Prasad
00:32 19 Mar 24
Swift Mortgage are exactly what we needed. I would 100% recommend to anyone who wants that peace of mind, reassurance and confidence in the buying first home . We are grateful we found IZAZ and will seek to use only him again in the future. We highly recommended him, He is highly professional, prompt, efficient and clear with communication.Responds quickly, understands the requests, communicates well and gets the job done under pressure... He knows what he is doing and does it in a timely manner.Thank you so much IZAZ Bhai for making our dream come true
Zureen TahirZureen Tahir
05:33 18 Mar 24
Very happy. We are off shore, and Izaz got onto our refix along with getting us better rates then what ASB offered online.Highly recommend
Ma Marita EndayaMa Marita Endaya
22:27 17 Mar 24
My family and I are very pleased with Joyce Ram as we experienced 101% of her support in every step our first home loan journey and timely release of our bank finance. Joyce is super reliable; truly exceeded our expectations. Highly recommended!! 👍👍👍
Shaleshni DeoShaleshni Deo
02:45 14 Mar 24
Hi Ranjana, Thank you so much for the tremendous support and assistance you provided last year; it meant a lot to us. I apologize for not being able to express our gratitude in person due to the busyness of last year. We're truly grateful for the lovely house we purchased with all your guidance and support. We're now comfortably settled and in the process of turning it into a true home, although that journey may take some time. Once again, thank you sincerely for all that you've done for us.From: Shaleshni and Avinesh
Len MoodleyLen Moodley
03:30 20 Feb 24
I had a very pleasant experience with Swift mortgages. The team is very well experienced and professional. Izaz assisted me with my mortgage and several other things over the past 2 years and his service was excellent. His attention to detail, knowledge and experience truly assisted me in making great decisions. I highly recommend this company. So glad I was referred to them. They are a one stop shop for my financial wellbeing.
Devita SamiDevita Sami
19:57 28 Nov 23
Our heartfelt gratitude to Joyce Ram who provided an exceptionally outstanding advice and support all throughout our journey to make this possible in buying our first dream home. Thanks Joyce, you were amazing, accommodating and very responsive to all our little concerns and questions. You made us realise that it is not difficult to become home owners and getting loan is not that hard. We know you went above and beyond to assist us find the best home and get our home loan approved. You are always welcome home and I would recommend Swift mortgage company for its best customer service to whoever wants to buy their dream home. Again thank you for your tremendous support and service Joyce.

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