What is the difference between turnkey and land and build?

Short answer: Turnkey = pay when finished. Land and build = buy land, build in stages. Turnkey simpler for first home buyers.

What this actually means in plain English

Turnkey means you pay when the house is finished and ready to move in. Land and build means you buy the land first, then build in stages, paying as construction progresses. Turnkey is simpler. Land and build gives more control but more complexity and risk. First home buyers usually prefer turnkey.

Key Facts

Turnkey: single price, pay at completion
Land and build: separate land and construction loans
Turnkey: simpler finance, less risk
Land and build: more control, more complexity
Land and build: progress payments during construction
First home buyers usually prefer turnkey

Example

Turnkey: $600,000 total, pay at completion

Land And Build: $250,000 land + $350,000 build

Land And Build Finance: Progress payments during construction

Recommendation: Turnkey for simplicity

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