February 13, 2020
Model homes – most of us have visited one at one time or another, and those of us who have visited one have likely dreamed of it being ours. Model homes represent everything that’s new and exciting about homeownership: they’re usually in the perfect location, with the ideal layout, decked out with all the upgrades, and – of course – decorated perfectly. “Wow,” we think to ourselves. “This house makes the stressful, tedious process of moving feel completely, absolutely worth it.” We’re willing to bet that most people don’t know that these idyllic model homes are actually available for purchase. It’s probably one of the best-kept secrets in real estate, but it’s true: model homes are up for sale. Usually, this game-changing knowledge is only transferred by word-of-mouth, and it’s a testament to the desirability of model homes that word-of-mouth is usually enough to get them to sell.
There are so many benefits of buying a model home. We’ve listed just a few of the major ones below.
Models are usually built in most ideal locations in the neighborhood. This makes the homes easy to find, unobstructed, and offers some of the neighborhood’s best views, and they are placed on the most sought-after home sites.
Often crafted with all the available upgrades, model homes are top-notch and can come at a more reasonable price than a custom build.
Model homes are decorated by professional designers – and many times buyers have the opportunity to purchase these beautiful furnishings at a discounted price.
In addition to the above benefits, some of the most compelling benefits of buying a model home are actually unexpected:
The mortgage on your model home purchase could be covered by receiving rental income from Sam Rodgers Homes during the leaseback period, and depending on the financials of your deal, you could be making money right off the bat. If the thought of being a landlord makes you cringe, no problem, with the builder as your tenant, you can count on it being maintained in pristine condition.
Long term investment
When you purchase a model home, you lock in your interest rate – and you may even be able to keep the home as a rental property after your builder’s lease ends, which means continuing to receive a monthly rental income. Or, of course, you can reap the benefits of this dream home full-time by making it your personal residence.
Real estate tax breaks
Just like any other real estate investment, deductions are possible for “ordinary” expenses such as mortgage interest, property tax, depreciation and repairs, as well as “necessary” expenses such as interest, maintenance, utilities, and insurance.
Long and short term capital gains
If you do decide to sell the property, there’s a chance it will sell for more than you purchased it for. Additionally, depending on the length of time you own the property, you could benefit from a reduced tax rate or even qualify for a zero percent long-term capital gains rate.
We’re thrilled to share with you five homes that are available as Model Leasebacks in our Bradenton community of GreyHawk Landing. These homes feature the highest technological upgrades, beautifully designed decor, and a variety of other features that make them some of the most desirable properties in the area. To see our highest-demand available model homes, don’t hesitate to click here.