Opportunity Zones


Since I am in in the property management software business, most all my blogs are related to property managers or landlords. However, this blog will cover a new federal program for real estate investors call Opportunity Zones. While it may benefit property managers or property management companies, it’s definitely geared towards real estate investors. With that in mind, read on!

The Genesis

Sean Parker, the co-founder of Napster (not part of the gold heist with Mark Wahlberg) worked with law makers on a new program call Opportunity Zones. The states governors are responsible for identifying low income census zones in their respective states.

Today, there are approx. 8700 defined Opportunity Zones nationwide. The zones are geographical areas that have been designated as investment opportunities that will benefit the community as well as those investors who participate in the program.

The program was created by the federal government in an effort to drive private investments into the low income areas across the country.

Timing

Time is of the essence for this program. It is a 10 year program that has the highest rate of benefits packed into the beginning years.

Investors should consider moving quickly if they want to maximize their returns.

Benefits Of Opportunity Zones

Tax breaks are one of the biggest benefits to real estate investors. The effect of these tax breaks will grow over time. There are 3 primary tax benefits.

  • Temporary Deferral of Taxes until 2026

  • Up to 15% reduction of those gains for the 2016 tax year

  • 100% of the funds appreciation is tax free if the investor holds them for 10 years or more

Communities

This new Opportunity Zone program has given local communities instant assets that they did not have before. The program now turns abandoned, rundown, vacant properties into investment ready assets for high net worth individuals as well as hedge fund managers and the larger banks.

Planning

If you plan to take advantage of this opportunity, you will need to carefully plan your strategy. Get your team of experts together and devise a plan that is right for you and your situation.

You may also discover that you have investments already in these designated Opportunity Zones. After my own investigation, I’ve found that I have an investment that appears to be right on the edge of a designated opportunity zone in Cleveland, (Bradley County) TN.

A well executed investment plan will be a win for all involved. Communities will see an increase in affordable housing, economic growth and job creation.

About PropertyZar

PropertyZar is a real estate technology company specifically in the web-based property management software for owners and professional property managers. Read more Top Property Management Blogs. Learn more www.PropertyZar.com

Content is originally posted athttps://www.propertyzar.com/opportunity-zones/

Comments

Post a Comment

Popular posts from this blog

These Advancements Are Bringing Real Estate Into The Modern Era

Image
  Many industries throughout the marketplace have changed their practices in response to developments in technology, but real estate, including property management is still largely stuck in the past. On-demand app development is making access to services easier than. Artificial intelligence and the Internet of Things are connecting us in new ways every day. It’s clear that taking advantage of these developments is key to progressing. As an industry with roughly $280 trillion in value , taking advantage of these new opportunities could produce billions or trillions in profits. A number of large real estate companies are attempting to build their own in-house technology, but in many cases, it would be more efficient for them as well as and property management companies to use existing solutions. These are some of the most exciting possibilities that new developments in technology can offer the real estate industry. Outsourcing the Cloud Cloud services is a rapidly gr
Read more

Boost Up Your Property Management Business Using These Clever Skills

Image
Property business is one of the biggest business sectors in most parts of the world. Property firms and real estate dealers are greatly relied upon by buyers for search of suitable properties. Whether online or offline, these buyers always look for reliable agents to have their requirements solved. Therefore agencies have been trying all new techniques to improve their business skills and operations. With the latest developments of technology, it would be crazy not to take the help of the latest tools. It is a smart work to capitalize on the latest tools or software and get a better output. If you haven’t, then it is time for you to optimize your real estate business by implementing real estate property management software . Being only a great manage is not sufficient, a great software can also help in developing miracles. What software is used by you to run your real estate business decided a lot on what results you would get. Efficient and organized software is good for i
Read more

How Propertyzar Compares To Appfolio, Buildium And Others

Image
Evaluating the right property management software can sometimes seem overwhelming. With so many options, how do you decide? The BIG Picture – It is important that you consider your business strategy when searching for a property management software. Whether you inherited a few rental properties, a real estate investor with multiple properties or a professional property manager looking to increase your portfolio of rental property owners. When you choose a software solution, there is time and effort involved for you to get “up and running” . You don’t want to change products because your business has out grown your current software solution. PropertyZar is not a “lite” application but instead is a feature rich solution for property managers and landlords. We are compared to products such as Appfolio, Yardi and Buildium. We do not compare to the smaller or freemium products. What does that mean? A common example is Accounting. While some vendors say they have a
Read more