For Australians seeking a stress-free entry into property investment, turnkey properties offer a tantalising promise: buy, settle, and start earning rental income with minimal effort. But with the Australian property market evolving rapidly in 2025, does turnkey investing still make sense?
What Is a Turnkey Property?
A turnkey property is a home or apartment that’s fully renovated, compliant, and ready for tenants — often complete with appliances, fittings, and sometimes even property management in place. The appeal is obvious: you buy, receive the keys, and the rental income can start flowing almost immediately.
This approach has gained popularity in major Australian cities, especially among interstate and overseas investors who want a set-and-forget solution. In 2025, turnkey packages are available from boutique developers in Brisbane and Adelaide, to large-scale projects in Sydney’s western suburbs and Melbourne’s growth corridors.
The Pros: Why Turnkey Makes Sense in 2025
- Speed to Income: With rental demand still high in most capitals, turnkey properties can be leased out within weeks of settlement, reducing vacancy risk.
- Fixed Upfront Costs: Developers typically offer a single, all-inclusive price, making budgeting easier. In 2025, this is appealing as construction and materials costs remain volatile.
- Tax Benefits: New builds or recently renovated homes may maximise depreciation benefits under current ATO rules, helping offset your taxable income in the early years.
- Attracting Tenants: Modern fittings, energy-efficient appliances, and smart-home features are now standard in many turnkey packages, making them attractive to renters seeking comfort and low running costs.
The Cons: What to Watch Out For
- Premium Pricing: You’re paying for convenience and certainty, but that often means a higher price compared to buying a fixer-upper or established property.
- Limited Customisation: Most turnkey packages offer set layouts and finishes, with minimal scope for personalisation. If you’re after a unique or character-filled property, this may not be for you.
- Developer Risk: Despite tighter ASIC oversight in 2025, some smaller developers have still faced insolvency, so research their track record and financials carefully.
- Rental Guarantees: Some providers offer rental guarantees for the first 1-2 years. While reassuring, these can be priced into the deal and may mask a property’s true market rent.
2025 Market Trends and Policy Updates
The landscape for turnkey properties has shifted in 2025:
- Interest Rate Stability: After two years of RBA rate hikes, 2025 has seen a pause, giving investors greater borrowing confidence. However, lenders are scrutinising off-the-plan and turnkey purchases more closely for valuation risk.
- First Home Buyer Incentives: Several state governments have expanded grants to include new turnkey properties, making these deals more attractive for owner-occupiers and investors targeting the first-home market.
- Build-to-Rent Growth: The rise of institutional build-to-rent has increased competition in some inner-city areas. Individual investors should carefully assess supply pipelines in their chosen suburb.
- Energy Efficiency Standards: Nationwide minimum energy ratings for new dwellings, introduced in late 2024, mean most turnkey homes now meet 7-star NatHERS standards — a plus for future resale and tenant appeal.
Real-World Example: Turnkey in Practice
Consider Anna, a Sydney-based nurse who purchased a turnkey townhouse in a new Brisbane development in early 2025. The property came fully furnished, with property management arranged. Within two weeks of settlement, tenants moved in, and Anna began receiving rent. The all-in price was slightly higher than a comparable established property nearby, but Anna avoided renovation headaches and accessed full depreciation benefits.
However, not all investors have a seamless experience. Some report delayed settlements due to developer cash flow issues, or discover that post-settlement defects take months to rectify. This underscores the importance of due diligence: check the developer’s history, seek independent valuations, and review contracts closely before committing.
Is Turnkey Right for You?
Turnkey properties can offer a low-stress path to property investment, especially for time-poor professionals, interstate buyers, or those seeking reliable rental income from day one. But as with any investment, it pays to weigh the upfront premium against the long-term returns and flexibility you’re after.
If you value convenience and have a clear investment strategy, turnkey could be a smart play in 2025’s dynamic market — provided you do your homework and choose your provider wisely.
