Modular Homes VA Blog
Reinvest Rental Property Capital Gains Tax Free Into a New Modular Rental Home
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Now, we are not tax attorneys (nor do we play one on TV), but we’ve come across a few people who have sold rental property elsewhere in the country and are now looking to us here at Tidewater Custom Modular Homes to reinvest the realized gains here in rental property here in Hampton Roads. If this is your intent, do you know that you can avoid paying federal capital gains tax on some or ALL of that profit?
The process by which to do this is called a “Section 1031 Like Kind Exchange”. Again, you must talk to a federal tax expert for the details, but simply put, you work the process through an intermediary who handles all the sale of your current and purchase of your future rental property. Because you never actually take receipt of the profit on the sale of your old property (because this profit is directly transferred by the intermediary during the purchase of your new property), federal tax law concludes you have not actually received a cash gain, YET that is. Sometime in the future when you (or your heirs) sell this new rental property, then the federal government will come calling you to pay tax on the gains.
So rather than write a check to Uncle Sam this year, you can reinvest your hard earned money into a new modular home perfectly suited for rent. Small low-cost ranch style modular homes such as "The Austin" or a cottage style modular home such as “The Ashton” can immediately put you into positive cash flow on your new custom modular rental home.
For more information, contact us today.
Modular Construction is Taking Off
Modular homes are prefabricated, residential homes that are becoming increasingly popular because of their elegant and affordable features. Sturdy modular construction and affordability of these homes along with the design possibilities and the ability for customized floor plans are just some of the factors that are letting modular construction take off.
The process of building a modular home begins with the design. The home is then built in modular sections at a climate-controlled factory, to the specifications laid-down by local and state building codes.
Cranes and trucks, transport the modules to the building site for final assembly, which includes setting the modules onto the foundation, installation of plumbing and electric, sealing up the home and adding the siding and decks.
Modular homes use traditional construction materials, but are built faster and more efficiently.
Other factors that contribute to the rising popularity of the modular homes are:
1. Modular homes take much less time to construct
2. Provides a profitable option to an home owner
3. Building and maintenance costs around 30% less, (depending on design options)
4. Manufactured in a climate-controlled environment, the house is not vulnerable to weather and other external factors that could affect the project completion.
5. A greener solution to home construction because of the low waste
6. More energy efficient than stick built homes
For more information on modular construction, contact Tidewater Custom Modular Homes.
Modular Construction for Vacation Homes
Modular home construction is a concept that is growing rapidly. Why? Because it is more efficient, sturdy with a faster construction time. Modular homes can be constructed in just 4-8 weeks once the design process is completed. This is why modular construction for vacation homes is the perfect option.
There are those who subscribe to the theory that you should buy your vacation home first and enjoy life. So if you are considering buying a vacation home, consider building one instead. With modular floor plans that are standard to custom designed, we can build the modular vacation home you really want on the piece of land you love.
Oftentimes, it easier to buy the perfect piece of vacation land than it is to buy the perfect vacation home. Now, you can build the perfect second home and be enjoying it by the time summer rolls around. Tidewater Custom Modular Homes is accustomed to constructing modular vacation homes. We are in the heart of vacation land!
For more information on modular vacation homes, contact Tidewater custom Modular Homes.
Custom Designed Modular Homes are More Popular
Modular homes from Tidewater Custom Modular Homes are catering more and more to high-end homebuyers with customized, amenity-filled homes.
Homeowners in the Virginia who want to design and build their own homes are building modular homes because modular is just as luxurious and just as sturdy as traditionally built homes, or more so. However, modular homes are built faster and in climate controlled factories, facts that many who are building homes like.
When folks choose to build a home, they want a custom home. They are building because they want a new home, but they want a new home that fits their needs, their hobbies and their families. Most new home builders do not want a cookie cutter home. They may want a cape style home, but they may want one with an extra bedroom, a studio, or a wine cellar.
With modular construction, buyers can choose from standard home floor plans and make changes as they see fit, or they can work with an architect to have a home designed that can then be adapted for modular construction.
For more information on building a custom designed modular home with amenities, contact Tidewater Custom Modular Homes.
Modular Homes Are Changing Their Old Reputation
Modular homes are changing their reputation, as climate-controlled home-building factories increasingly cater to high-end home buyers and investors with customized, amenity-filled homes.
Real estate agents are coming across more and more modular homes being built and put on the market, a sign that homeowners and homebuilders are seeing these homes as luxurious and just as sturdy as traditional homes built on site.
When they show these high-end homes, people don't know they are modular. Interest in modular construction is growing because there is a strong market for new homes with more amenities. Modular homes are really about customization and giving the client what they want.
Modular home construction is getting away from the old-school way of sitting down with a catalog and picking a house. Now you can build anything you want.
Another advantage of modular construction is that while prospective buyers can dicker with traditional contractors or home sellers, pricing on modular homes is less flexible. Once a price is quoted, it's set.
Modular homes also save on labor costs because builders can buy products in bulk rather than for specific projects and can avoid extreme weather that can delay construction.
For more information on building a custom designed modular home, contact Tidewater Custom Modular Homes.
Excerpts - Post Gazette
Modular Homes on the Rise
Factory-built modular homes appear to be on the rise, as climate-controlled home-building factories are increasingly are catering to high-end home buyers and investors in the region with customized, amenity-filled homes.
Edward Mathis, a Re/Max agent for 12 years, has recently come across more than a few modular homes being built and put on the market, a sign that homeowners and homebuilders are seeing these homes as luxurious and just as sturdy as traditional homes built on site.
In the United States, about 3% of homes are modular homes.
Mathis said that when he shows high-end modular homes, people don't know they are modular. He said that he thinks interest will grow because there is a strong market for new homes with more amenities.
"It's really about customization and giving the client what they want," Mathis said.
Modular homes are getting away from the old-school way of sitting down with a catalog and picking a house. Whereas now you can pretty much build almost anything you want.
For more information on modular construction, contact Tidewater Custom Modular Homes.
NorthJersey.com
VA Guarantee for Modular Homes
The VA will guarantee loans for prefab homes and modular construction. However, it's all about risk. So, here is what is important to remember, and what is not.
A. The VA does not loan the money, it guarantees a portion of the loan that the lenders or banks make for the purchase of you modular home. That means that the VA takes the risk out of the loan by assuring that (typically) 25% of the loan will be paid off. It is truly the only government guaranty available on the market.
B. Lenders lend the money. These lenders are mortgage companies and banks who rely upon the VA Guaranty to make your loan. Lenders honor the rules of the financial markets, rules that are set by Fannie Mae and Freddie Mac.
A modular home is not the same as a manufactured home for VA purposes. Although the parts or sections of a modular home are built in the factory and then moved to the building site, the home must still be put up and completed at the building site. A veteran may obtain a loan to purchase a modular home under VA's regular home loan program.
Modular Homes
These can sometimes be called prefab homes. The pieces of the home are actually built in a factory. They are then shipped to your building site, assembled, wired, finished, equipped with sinks and furnaces, connected to utilities, inspected and handed over, all in the space of a few days. The result is a custom designed, newly built home with everything brand new. This approach to new home ownership can often be the best possible bang for your buck. And, banks lend on modular homes the same as a stick built house.
However, there is sometimes confusion in the Fannie Mae Freddie Mac world about manufactured homes and modular homes. You and your loan officer need to approach with care to make certain that everyone understands that the VA term for manufactured home is not the same as that often used in the residential mortgage world.
Bottom line
For modular homes, if otherwise qualified for the loan, the VA will guaranty the loan and the lenders will do the deal.
For more information on modular homes for veterans, contact Tidewater Custom Modular Homes.
Excerpts - Ezine
Modular Home Facts
Modular homes are constructed in an environmentally protected factory. The quality control methods can now be applied to home construction. A better built, quality controlled home is now available to homeowners.
The cost savings can be significant, up to 30%. The benefits of a modern assembly line, low waste, reusable designs, and bulk material buy savings bring down the costs for new modular homes.
Modular construction offers shorter, more predictable building schedules. The home is constructed on a set schedule from the factory. When it is delivered to the property, it can be weather tight the same day. The amount of effort to finish and move in is minimal and the time and stress is reduced.
Modular homes are not mobile homes. They are built to local and states building codes.
Modular homes offer a great way to build a new home economically. It provides a way to build, even during inclement weather when all other construction has stopped. With interest rates so low, and the slow season approaching for builders, no one should pass up the opportunity to build a new modular home. Contact Tidewater Custom Modular Homes.
Excerpts - SB Wire
The Many Pro's of Modular Construction
If you are considering building a new home, you should understand modular construction and understand the pro’s of buying one.
1. Modular homes can be constructed almost anywhere.
2. They are generally more affordable, in dollars and time, than stick built homes.
3. The floor plan can be customized.
4. Modular homes are built and in “move-in condition” much faster than stick built homes.
5. With modular construction there are no weather, worker or material delays. Also, there are no construction material thefts from the site.
6. These homes are factory built and must comply to all local and state building codes. They are also 3rd party inspected while being constructed in the factory.
7. Most modular homes will save energy.
8. You can easily add more rooms or additions in the future.
9. Modular homes stay beautiful for years and appreciate in value just like traditionally built homes.
For more information on modular homes, contact Tidewater Custom Modular Homes.
Understanding Modular Construction
Many people are hesitant to consider modular homes because they think that the construction design is limited, but that is no longer the case. In fact, just like with stick built homes, the first phase of modular construction is designing your floor plan.
Modular homes are then constructed and assembled using factory production methods. Each section of the home are made by expert builders in a factory. After each section is done, a separate team of workers inspects the quality of their work.
This quality inspection process is just one reason why many people highly prefer modular or prefabricated homes. And since they're made inside a controlled environment, there are no imperfections and weather related damages or delays.
If you have limited time, modular construction is a perfect choice. Modular home construction is so efficient that you can have your home ready in just a few weeks.
For more information on modular homes, contact Tidewater Custom Modular Homes.
Excerpts - Ezine