A turnkey property is just that. One that you can twist a key to open post-purchase, revealing a fully furnished space with cutlery in the drawer and sheets on the beds. Preferably with a bottle of rosé in the fridge as well.
For good reason is Nice’s turnkey market booming.
To most investors, time is money. So if it takes a week to hit Ikea, call the cable guy, install WiFi and buy 14 different light bulbs, the price of that valuable time could run into thousands. And you have to speak some French at the very least.
A case in point is the Pebbles rental property Cognac. Five international buyers bid for this three bedroom apartment when it went on sale in 2016. In all Pebbles have sold eight turnkey properties in the past eight months.
The rationale for these ongoing sales is part financial, part security.
Firstly, turnkey buyers can justify a purchase by knowing exactly how much revenue a property will churn. When calculating investment sums, this is the most important equation of all. Furthermore, there is no discrepancy over final bills for beds, sofas and kitchen appliances as everything is included in the price.
Secondly, a ready-to-rent property inspires confidence. If guests are already letting a villa or apartment on the French Riviera, they will continue do to so, whosoever the property’s owner may be.
Pebbles have one final trick up their sleeve. As well offering rental management for the properties on their books, they also market apartments with existing bookings thrown in.
Which means if you purchase a property this coming spring, it may have thousands of Euros of bookings already confirmed. That’s value that any investor can see.