What is a Turn-Key, Fixed Price Contract & what does it include and more importantly what It doesn’t include?

It is important to remember that not all house and land packages are created equal. You will need to take the time to carefully read through the contract as builders may have varying definitions of what’s included in a turn-key fixed price contract. 

As an investor, a fixed price, turn-key contract is the preferred contract/build type as you know your costs upfront and know that the property will be ready-to-rent on completion. 

What is generally included in a Fixed-price, Turn-Key property? 

• Landscaping and fencing 
• Turf and letterbox 
• Driveway and paths 
• Blinds to windows and sliding doors 
• Fly screens 
• Air conditioning 
• Kitchen appliances including a dishwasher 
• Lighting  
• Flooring throughout the home 
• Clothes Line 

 What is generally not included in a Fixed-price, Turn-Key property? 

• Site Upkeep: Keeping your site clean before construction or your builder taking control of your site, gardening, rubbish removal etc. 
• Site Clearing: An empty site often attracts rubbish and building materials dumping. In most cases, your builder will require a cleared rubbish-free site before starting your project. 
• Site works: The contract will have an allowance for site works, if your site requires more site works than allowed then these costs can be passed onto you. 
• Changes, extras and additions: Any changes to your design, materials or finishes will add to the costs of your contract. Carefully consider all design, materials and inclusions before signing the contract as costs can blow out to any changes or additions once contracts have been signed and construction has started. 
• Site Conditions: Changes in access or conditions of your site. 

Other things to be aware of:

• Legal costs: Conveyancing costs. 
• Borrowing Costs: Loan costs, valuations, etc. 
• Accounting Costs: Setup of holding structures, trust, company or SMSF. 
• Property Management: (SDA Provider) Onboarding fees, advertising costs. 
• Utility connections: Some property types and locations require the owner to connect utilities. 
• Building Inspection: Once your property is completed we recommend a building inspection. 

A Turn-Key, fixed-price contract offers a straightforward path to owning a rent-ready property, detailing all inclusions such as landscaping, internal fittings, and essential appliances. However, it’s vital to be aware of what’s not covered, including pre-construction site work, any changes post-contract signing, and various additional costs not included in the contract. A careful review of the contract, informed by legal advice, is essential to ensure a clear understanding of all terms and to safeguard against unexpected financial outlays. This knowledge empowers investors to make informed decisions, ensuring their investment journey is as smooth and predictable as possible. 

All properties presented on Aus Investment Properties are considered Turn-Key, Fixed-Price contracts, you can view all our properties here www.ausinvestmentproperties.com.au

This information is provided as general in nature to help give you an understanding of Fixed-Price Turn-Key building contracts. Every builder and build contract is different, therefore it is important to have your land and build contract reviewed by a suitably qualified solicitor or conveyancer.