What Are Opportunity Zones?
Are you searching for more information about investment opportunities online? If so, you may have come across information on opportunity zones but you most likely are not familiar with what they are.
As a top commercial management company in California, we can tell you that opportunity zones are an exciting opportunity to make money in today’s real estate market.
In this article, we will break down opportunity zones and provide you with the information you need to know about these types of investments.
Breaking Down Opportunity Zones
Thanks to the tax cuts and jobs act we have the Investing in Opportunity Act; this part of tax reform offers investors tax cuts and other Capital Gains tax incentives when they invest in areas that can be classified as economically distressed.
Right now, all 50 States have Opportunity Zones and they can also be found in Puerto Rico, Guam, American Samoa, and other U.S. territories.
Close to 25% of low-income neighborhoods nationwide fall under the opportunity zone classification and as of 2019, there are 8,700 registered opportunity zones in the United States.
For an area to be classified as an opportunity zone it must have a poverty rate of 20% and no more than 80% of the greater statewide median family income
Tips for Investing in Opportunity Zones
Before investing in an opportunity zone, you should always first verify that the real estate you plan on buying does fall within the opportunity zone classification.
After you’ve confirmed that the property you want to purchase is indeed part of an opportunity zone you should next think long term and make sure that the property is worth the risk.
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