The Pros and Cons of Buying Land To Build A Home

 

Owning land is part of the American dream. This does not mean that this is the right move for everyone. Here are the advantages and disadvantages of purchasing land for a home.

Here are three reasons why purchasing land would be a great idea.

You Can Build Your Dream Home

Who wouldn’t want to build their dream home? Purchasing land gives you the perfect opportunity to do this. Your home can be exactly the way you want it (provided the home plans comply with local zoning

and building laws). If you are licensed as a general contractor, then building a home will be a whole lot cheaper than purchasing a new construction home.

Diverse Investment Opportunities

Residential real estate is still a smart investment. Land and buildings are great real estate assets but the land is more versatile for investment opportunities. You can purchase land and sit on the vacant lot and resell it for higher price years from now. The land has little maintenance and appreciates over time with little done to it.

You Can Qualify for a USDA Loan

If you purchase land in a rural area, then you are able to qualify for financing with a construction loan guaranteed by the U.S. Department of Agriculture. This is perfect if you are going to build your primary residence on this land. Another plus is that a USDA mortgage will not require you to have a downpayment.

There are however several reasons why this would not be a good idea for many.

The Process Requires More Research

Building from the ground up can be a daunting task with a litany of things to do before you even break ground. You not only have to hire an architect and a contractor but you have to conduct soil tests, check local building codes and zoning regulations, obtain building permits, and make sure that you have access to underground utilities. Be sure to obtain a land survey to confirm the surface area you are purchasing. You do not want to have a dispute about your land’s boundaries.

You May Have More Options in Rural Areas

A lot downtown is worth a lot more than a lot in a rural location. In sought-after locations, you will be bidding against developers, investors, and other homebuyers for land. You will have better luck and more opportunities to purchase a piece of land in rural areas. This would not be ideal for a family with kids that need local amenities.

Getting a Conventional Loan May Be More Difficult

A lender will want to have tangible assets to use as collateral. Lenders look at land as a riskier investment than a home that is already standing. If a lender will give you a conventional loan, there will be very strict requirements. Some of these requirements might be a better credit score and a better debt-to-income ratio than if you were purchasing a home. Lenders might require a larger down payment and higher interest rates with a shorter repayment period.

If you are in between on whether to purchase land or a ready-built home, then a teardown might be right for you. A teardown will already have access to utilities and you will not have to spend as much time with permits as you would on a vacant lot. Check with your local Realtor who can help you choose the right path for you.

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2022 Southern Kitchen Looks

 Kitchens are the heart of the home and they are especially a big deal in a Southern home. Whenever people gather at home whether big or small there is always food involved in the kitchen. Southern Living magazine featured the 2022 Living Impressions™ Collection by Formica Group. In the article, they featured three different patterns for a kitchen’s surface countertops and backsplashes.

Modern Vintage

The sugar glass pattern is perfect for those who love old and new. The elements are of new and old design and will fit in almost any kitchen’s decor. Celebrity designers have dubbed this look as “Grandmillennial” or “granny chic.” The sugar glass pattern is described as a vintage-modern fusion. The company creates the look by scanning glass chips, milk, and sugar to create an exciting new tactile multidimensional pattern.  The sugar glass backsplash is a perfect fit for any color cabinetry.

Rustic Luxury

This look doesn’t mean an old rickety cabin in the woods. After the pandemic hit, bringing the outdoors in has become an even more popular trend. This look can be completed using natural materials and earthy hues. A great example is to use reclaimed wood on a kitchen island. Their Walnut Butcherblock

is a perfect pattern to use for this look. The farmhouse design has been a popular trend for years and will stay popular this year.

Marvelous Marble

Marble is a popular trend that can give your kitchen a sleek look. The new Manhattan Marble and the classic Mediterranean Marble pattern are perfect for this. They “offer a stunning interplay of white and light. Marbled Gray gives an “abstract and industrial” look and Slate Noir is described as a “little black dress” pattern.

Many of us have spent more time than usual in our homes and might be ready for a new look. Southern Living suggests looking at the 2022 Living Impressions™ Collection from Formica and ordering a free sample at www.formica.com/livingimpressions.

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The Next Generations Should Look at a Career in Construction

 

With the housing market so strong and the inventory low, it is no wonder that the construction industry is booming. Residential construction has tons of talented and creative people in the industry. This industry has great earning potential, job security, and room for advancement, which gives those in the industry a sense of personal achievement. This makes it a perfect industry for your children to consider in the future.

There are a couple of big factors to consider when it comes to your child’s future, education and career. These factors tie into both by gaining knowledge and skills and putting them to use. A good way for

your child to consider all career options is to experience Career and Technical Education (CTE).

CTE provides younger generations with the education and skills they need for college and careers. It also gives kids a reason to learn by taking real-world skills and knowledge in a specific field to focus on. There is a high demand for CTE. Ninety-four percent of parents support it, 86% of both students and parents vocalized they wish they had the opportunity to have received more real-world knowledge and skills at school. In fact, 54% of business leaders say the educational system does not implement CTE enough.

Remember there are plenty of opportunities in the construction industry. There are occupations such as carpenters, plumbers, and HVACR technicians that are in high demand. If college isn’t your thing, there are other ways to get to a good career.

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Your Home Projects Might Give You Energy Tax Credits

 

Tax season is here and many are scrambling to get their taxes done on time. There are many tax credits that home builders might be able to benefit from including the 45L tax credit for single-family and multifamily developers exceeding 2006 energy standards.

The 45L energy tax credit can be claimed the same year each home is sold or leased/ It can be on newly constructed and renovated homes and apartments. In order to get the tax credit, an eligible certifier must

perform energy modeling, testing, and certification. A home that is three stories or less is eligible. These can be single-family, manufactured homes, apartments, condos, and assisted living facilities.

Volume home building can also qualify for R&D along with the 45L tax credits. The homes must follow certain design specifications and activities. BRAYN Consulting, a company composed of lawyers, engineers, HERS raters, and accountants, can assist with these niche tax credits. The engineering staff at BRAYN can work along with your CPA firm to review, documentation, and substantiation of the tax incentives specific to your business.

Remember if you are a builder you do not want to leave any money on the table. A company such as BRAYN can help you with the tax process.

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