Investment Ideas
Purchase
Two Lots At The Same Time
Improve your returns and avoid Capital Gains taxes when you sell your home!
How do you do this?
Very simple, build two homes:
1) Build your personal dream home
2) Build a second home for resale
Why would you do this?
Theresa O'Connor Wallace
Realtor/Developer
Call/Text: (512) 296 - 5100
1) When building your home and a second home at the same time, you assign most if not all of the non material costs associated with building the home to the second home, e.g. Architectural, Engineering, Project Management and Contractor and General Contractor Costs and Profits to the second home. This then burdens the cost of the second home vs. sharing the costs equally across the two homes. This pays off down the line when you sell your Personal Residence by increasing the profit on your personal home (by decreasing the cost to build it) so you can then take the profit or Capital Gain as part of your Personal Home Sale Capital Gain exclusion of up to $550,000 for married couples, reducing possible sale gain taxes up to $200,000. The second home when sold, shows little or no profit and therefore no taxable gain and as it can also be used as a possible business expense, any sale loss could be tax deductible (please check with your tax advisor to determine your possible benefit)
2) Since you determine what home is built next to you, you decide where it is placed on the lot (so you can maximize the views of your home), what style of home is next to you, where the driveway and garage are located, where the pool may go and what colors the house will be. In essence: How the neighboring home affects yours. Wouldn't it be nice to determine what the neighbors home looks like? I know I would love this control.
3) How do we make this possible? When buying two or more lots in our development, we reduce the combined price significantly, and in particular the lot you plan to put your personal home, again maximizing the profit on your personal home and therefore the Capital Gain exclusion when you sell.
Please call us for more information and you can use us to build (some of the homes we have built are featured on TV shows like "Friday Night Lights" and another was specially built for a multi NBA League and NBA championship MVP) OR bring your own builder. Many of our lots support walk out basements giving you additional square footage at reduced construction costs (instead of building a large foundation, that space can be used as an additional floor!!).
