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John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

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New Homes: Manufactured, Modular or Site-Built?

September 13, 2016 1:30 am


(BPT)—Building or purchasing a new home has several advantages: for one, control over design and location, as well as the ability to own sooner (and often for less money) in markets with short supply.

New homes can be built or purchased in one of three types of construction: manufactured, modular and site-built. Each has its pros and cons.

“A newly constructed home may be any of the following three types: manufactured, modular or traditional site-built,” says Kevin Clayton, CEO of Clayton Home Building Group. “Whichever type selected will be built to strict state and federal code and can vary by style, custom features available, energy-efficiency, speed of construction and affordability.”

Manufactured

Manufactured homes are built in a controlled factory environment using many of the same building materials used in site-built homes. The entire house is assembled in the factory in sections, and then transported by truck to the home site for final installation.

Manufactured homes are subject to internal inspections and must meet building standards defined by the U.S. Department of Housing and Urban Development (HUD) to receive final certification. Because the house is built indoors, the construction schedule is not subject to weather delays, so a manufactured home can be completed and set up on-site in a matter of weeks, rather than months.

Manufactured homebuilders purchase construction materials and appliances in volume, which helps keep the cost of manufactured homes lower than what you would pay for a site-built home. (In 2015, the average cost of a manufactured home was just $47.55 per square foot, according to the U.S. Census Bureau’s Survey of Construction [SOC] data.)

Modular

Modular homebuilding combines elements of site-built and manufactured home construction. In modular home construction, the home may be either 100-percent factory-built or a mix of both factory-built and on-site built. Modular homes can ship to the home site fully complete or with work left to be done—this allows for full customization.

Modular homes are often shipped in sections that are assembled at the site by use of a crane. The home is typically placed onto a permanent foundation, and can be multiple stories high. Modular homes can also have basements, garages and unique roof profiles that make them indistinguishable from traditional site-built homes.

All the building codes that apply to site-built homes also govern modular homes. Because much of the construction takes place inside a factory setting with materials in stock, modular homes can also be completed faster than site-built homes. They also benefit from similar bulk cost-savings as manufactured homes.

Site-Built

As the name implies, site-built construction assembles the house on the site where it will permanently stand when finished. All the materials that go into the house—from wood for the frame to pipes for the plumbing and shingles for the roof—are transported to the site for assembly of the house, which could take several months. Transporting and buying exact measurements of building materials that will be used (versus buying bulk) contributes to the final cost of the house.

During construction, materials may be stored onsite and exposed to weather until construction crews are ready to use them. Similarly, the interior of the home is exposed until the roof, walls and windows are all in place.  They are subject to various state and local building codes to ensure safety before the home is ready to be sold.

Site-building is a time-tested, traditional way of building homes, and is the most common method of construction. Construction times vary, but can range from less than three months to a year, according to data from the SOC. The average price per square foot of a single-family site-built home was just over $100 in 2015.

The type of construction you choose will depend on your budget, needs and preferences. Advances in manufactured and modular homebuilding mean it's now possible to build one of these homes with the same high-end features you would find in a quality site-built home.

Source: Clayton Home Building Group
 

Published with permission from RISMedia.


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Estate Planning in a Globalized World

September 12, 2016 1:27 am


Estate planning is complex, now more so for families faced with navigating the process on a multinational stage. Issues beyond U.S. borders may be especially impactful, says John O. McManus, an attorney and founding principal of New York- and New Jersey-based McManus & Associates (www.McManusLegal.com).

“We live in an increasingly globalized world—today, many people travel regularly for work and pleasure, and have loved ones and investments abroad,” McManus says. “Whether you are a U.S. citizen with assets abroad, a U.S. resident living overseas with ties back home, or have loved ones overseas from whom you could receive gifts or inheritances, it is important to keep up-to-date on multinational estate and tax planning issues.”

According to McManus, one of the primary issues is Brexit. European Union (EU) membership permits free movement to live and work throughout the EU, so those moving into and out of Britain should prepare for potential residency and passport complications.

Another consideration is assets, McManus says. Those with assets abroad are subject to U.S. estate and income tax on those assets. This applies to U.S. citizens and resident aliens—a non-resident alien is taxed only on U.S. source income, including capital gains from the sale of a U.S. real property. Non-resident aliens planning to immigrate to the U.S. should consider purchasing U.S. real estate through a foreign corporation and making unlimited non-U.S. gifts to U.S. persons (directly, or in a foreign) trust prior to immigrating, so as to avoid estate and gift taxes, McManus advises.

There is “financial fine print” that can present challenges, as well. U.S. citizens working overseas have FBAR reporting obligations if the value of their foreign financial accounts exceeds $10,000 at any time during the year, McManus explains. For unmarried citizens living abroad, Specified Foreign Financial Assets (Form 8938) must be filed with their U.S. income tax return for foreign financial assets worth more than $200,000 on the last day of the taxable year, or $300,000 at any time during the year; for unmarried citizens living in the U.S., they must be filed with their income tax return if worth more than $50,000 on the last day of the taxable year, or $75,000 at any time during the year.

Likewise, U.S. citizens receiving $100,000 or more in bequests/gifts from a foreign individual are required to file Form 3520 by April 15 of the year following the gift, lest a 25 percent penalty.

One other consideration is portability, McManus adds. Portability permits a surviving spouse to use the Deceased Spouse’s Unused federal estate tax Exemption (DSUE) of their most recent deceased spouse, in order to increase the estate tax exemption amount. Portability is generally only available to U.S. citizens and residents—non-U.S. citizens or residents should establish a Qualified Domestic Trust (QDoT) to have the DSUE amount of the decedent included in the surviving spouse’s applicable exclusion amount, McManus advises.

In addition, having more than one will can be beneficial—the advantage, McManus explains, is that they can be tailored to different jurisdictions; the disadvantage, however, is the expense needed to prepare them, as well as the additional complexity in the overall estate plan. Multiple wills may be prudent if there is substantial real property or investments in privately-owned companies abroad, McManus says.

Source: McManus & Associates
 

Published with permission from RISMedia.


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