In August, LGI Homes started to sell Velare at Twelve Bridges. Velare at Twelve Bridges is just north of Leatherby’s. They are currently offering half plexes priced between $439k and $477k, and single-family homes ranging from $522k to $571k.
For those currently renting in Twelve Bridges, Velare presents an opportunity to transition from renting to owning. If you already cherish the community of Twelve Bridges, this could be the perfect chance to make it your permanent home. LGI Homes is facilitating this transition by offering to owner-occupied Velare home buyers a 2/1 buydown and they are also covering most of the closing costs.
What exactly is a 2/1 buydown? Essentially, it’s a financing option where the interest rate is temporarily reduced for the first two years of the mortgage term. It’s subject to change, but is currently 4.375% for year one, 5.375% for year two and the third year until 30 years it remains at 6.375%. This can significantly lower monthly payments initially, providing a more manageable entry point into homeownership. Also, if interest rates drop within the next two years, you can refinance and keep the low payment permanently, perhaps. It’s important to fully understand this incentive so that you are not surprised by your monthly payment starting in the second and third year. Also no one can predict rates in the future for certain.
If you’re an aspiring landlord or looking to expand your investment portfolio, now might be an opportune time to act. The prices are pretty good on the Velare homes. As with most California investment properties, you trade cash flow for appreciation. If your strategy is to have increased equity while the renters pay your mortgage, this is something to consider, especially since you would live close to your investment.
For property owners with substantial equity in rental properties, Velare presents the possibility of utilizing a 1031 exchange. This provision allows investors to defer capital gains taxes by reinvesting the proceeds from the sale of one property into another similar property or properties. By leveraging this strategy to transition equity into two or more properties, investors can potentially get more exposure to appreciation by having multiple properties instead of a single property.
Please do your own research. I am not trained to give financial advice. Also, if you or someone you know is interested, please contact me BEFORE you visit Velare. If I register you, I’m allowed to help you throughout the process. For more details about these homes, visit 12Bridges.com/LGI to be redirected to the official website.
