What Does ‘Turnkey’ Really Mean? Understanding Turnkey Home Builds in New Zealand
April 7, 2025
The term “turnkey” is frequently used in the building and property industry—but what does it actually mean? While it sounds simple and convenient, many homeowners find the concept confusing because the word “turnkey” is commonly used in two different contexts within the construction and property finance sectors.
In this guide, we’ll clearly explain both definitions, remove the misconceptions, and help you decide whether a turnkey build suits your needs.
Definition 1: Turnkey as a Fully Completed Home
The first and perhaps most widely understood definition of turnkey relates to the level of completion and readiness of your home when you take possession. Under this meaning, a “turnkey” home build means exactly what it sounds like—you simply turn the key, walk in, and everything is ready for you to start living comfortably.
A true turnkey home build typically includes:
- Landscaping, driveways, and fencing
- Interior finishes, including curtains and blinds
- Floor coverings (carpet, tiles, vinyl, timber)
- Fully fitted kitchen and bathrooms
- All appliances and fixtures
- Lighting and heating fully installed and functional
The appeal of a turnkey build under this definition is clear: it offers convenience, clarity, and a hassle-free move-in experience. There’s no extra work required from you once the keys are handed over—your home is ready to live in immediately.
Definition 2: Turnkey as a Financial Structure
The second definition of “turnkey,” which is equally important but often less understood, relates specifically to the financial arrangement of your building project.
In financial terms, a turnkey agreement describes how payments are structured during the building process. This typically involves:
- Paying an initial deposit, usually around 10%, when the building agreement is signed.
- Paying the remaining balance—typically 90%—only upon final settlement, after construction is complete and you have the keys to your home.
The benefits of a financial turnkey arrangement include:
- Reduced Financial Risk:
You are protected from significant upfront payments, minimising your financial exposure if something goes wrong during construction. - Simplicity in Budgeting:
You pay a clearly defined deposit upfront, followed by a single final payment at completion, making it easier to manage your finances.
Common Misconceptions about Turnkey Builds
Many first-time home buyers and even experienced property investors can be confused by these dual meanings. It’s critical to clarify exactly which type of “turnkey” your builder or consultant is referring to before committing to any build agreement.
Common misunderstandings include:
- Believing a financial turnkey automatically includes all landscaping and interior finishes.
- Assuming a fully completed turnkey home always involves paying just two instalments—10% deposit and 90% at settlement—without checking the specifics.
Clearly defining your expectations from the start and confirming exactly what is included in the builder’s definition of “turnkey” prevents disappointment, confusion, and hidden costs.
How to Choose the Right Turnkey Option for You
Choosing between a turnkey financial structure and a fully completed turnkey home depends largely on your individual needs and priorities:
Consider a Fully Completed Turnkey Home if you:
- Want convenience, minimal stress, and a ready-to-live-in property upon settlement.
- Prefer certainty about total completion costs without additional out-of-pocket expenses after moving in.
Consider a Financial Turnkey Structure if you:
- Want clear financial protection, limiting upfront payments.
- Prefer greater financial control with a structured payment approach, knowing the bulk payment occurs only at final settlement.
Key Questions to Ask Your Builder About Turnkey Agreements
Before signing any build agreement labelled “turnkey,” clarify these points:
- “What exactly is included in your definition of turnkey completion?”
- “Is landscaping, curtains, and interior finishing included, or are these additional costs?”
- “How are the payments structured? Will I pay progressively, or is it just a deposit upfront with the rest on settlement?”
- “What happens if there are unexpected costs during construction under a turnkey agreement?”
Reputable builders will welcome these questions and provide clear, transparent answers to help you feel confident in your decision.
Final Thoughts: Clarity Matters in Turnkey Home Builds
Understanding the term “turnkey” in home building—both in terms of completion level and financial structure—is essential. By clearly distinguishing between the two meanings, you’ll make more informed decisions, avoid hidden costs, and ensure your building journey is smooth and enjoyable.
Always clarify your builder’s definition of turnkey upfront and seek advice from your lawyer or financial advisor if you’re unsure.
Ready to explore turnkey options further? Our friendly team at Today Homes is always here to help you find the right solution.